As I discussed in a previous post, many states require charitable organizations that solicit money to register before fundraising. Until this month, Utah was included in this group of states where registration was required. However, on March 13, 2024, Utah's Governor signed H.B. 43, Charitable Solicitations Act Amendments, which among other things, "removes a requirement that charitable organizations register with the Division of Consumer Protection."
This new law is effective May 1, 2024, but as of March 29, 2024, the Utah Division of Consumer Protection stopped accepting charitable solicitation registration applications. The new law will require certain charities "to upload their most recent Form 990 as part of the corporation's filing process," which will be the subject of forthcoming administrative rules. This requirement begins on January 1, 2025 and will generally require domestic and foreign nonprofit corporations to "file an unredacted copy of the charitable organization's most recent IRS Form 990, 990-EZ, 990-N, or 990-PF." Note that most 990 forms are currently available on the IRS's Tax Exempt Organization Search website.
Even small Utah charities may still be required to register to legally solicit donations in other states, depending on how they fundraise. While these laws change frequently, this chart by Lowenstein Sandler is a good starting point for researching the requirements that apply to charities across the 50 states. For assistance in understanding the application of these laws, please contact knowledgable legal counsel.
This new law is effective May 1, 2024, but as of March 29, 2024, the Utah Division of Consumer Protection stopped accepting charitable solicitation registration applications. The new law will require certain charities "to upload their most recent Form 990 as part of the corporation's filing process," which will be the subject of forthcoming administrative rules. This requirement begins on January 1, 2025 and will generally require domestic and foreign nonprofit corporations to "file an unredacted copy of the charitable organization's most recent IRS Form 990, 990-EZ, 990-N, or 990-PF." Note that most 990 forms are currently available on the IRS's Tax Exempt Organization Search website.
Even small Utah charities may still be required to register to legally solicit donations in other states, depending on how they fundraise. While these laws change frequently, this chart by Lowenstein Sandler is a good starting point for researching the requirements that apply to charities across the 50 states. For assistance in understanding the application of these laws, please contact knowledgable legal counsel.
