Center for Non-Profits - NJ Charities Registration Regulations Adopted

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NJ Charities Registration Regulations Adopted

(posted 1/18/07)

On December 18, 2006, the New Jersey Department of Law and Public Safety, Division of Consumer Affairs, Charities Registration Division adopted final regulations implementing portions of the revised "Charitable Registration and Investigation Act" which was signed into law January 8, 2006. Although the regulations were published in December, many key provisions in the Act took effect on July 9, 2006. Following are some important provisions under the Act and new regulations:

Threshold for filing audited financial statements:
Effective July 9, 2006, the annual threshold for gross revenues requiring submission of an audit with a charity's annual registration/financial report to the Attorney General is now $250,000 (prior threshold was $100,000). For those agencies required to submit an audited financial statement, the law now requires submission of the auditor's management letter, if one was prepared, to the Attorney General along with the audit (management letters will not be available to the general public).

Registration exemption and voluntary registration option for small organizations ("small potatoes exemption"):
Any organization whose gross contributions in the previous year did not exceed $10,000, provided that all of the organization's functions, including fund raising activities, are carried on by volunteers, members, officers or persons who are not compensated for soliciting contributions, is exempt from annual registration requirements. Note that for this registration threshold, "contributions" does not include membership dues, fees for service, or funds received pursuant to a government grant or contract.

Small organizations that would otherwise be exempt from mandatory registration may elect to register voluntarily for a fee of $30. The filing deadline for voluntary registrations is the same as for mandatory filers - 6 months following the end of the organization's fiscal year. However, unlike mandatory filers, voluntary organizations will not be granted extensions of time to file, and a late fee of $25 will be assessed against any organization that elects to file a registration statement but fails to submit the complete annual registration filing within 30 days of the annual filing deadline.

Expanded mandatory written disclosure language:
The revised Charitable Registration and Investigation Act added key language to the disclosure statement that charities are required to included on all written solicitations, receipts and reminders. At the Center's request, the new regulations confirm the phone number and provide the Internet address that charities must use to satisfy the requirement. Under the new regulations, charities are required to include the following "conspicuously printed" disclosure:

"INFORMATION FILED WITH THE ATTORNEY GENERAL CONCERNING THIS CHARITABLE SOLICITATION AND THE PERCENTAGE OF CONTRIBUTIONS RECEIVED BY THE CHARITY DURING THE LAST REPORTING PERIOD THAT WERE DEDICATED TO THE CHARITABLE PURPOSE MAY BE OBTAINED FROM THE ATTORNEY GENERAL OF THE STATE OF NEW JERSEY BY CALLING 973-504-6215 AND IS AVAILABLE ON THE INTERNET AT http://www.state.nj.us/lps/ca/charfrm.htm . REGISTRATION WITH THE ATTORNEY GENERAL DOES NOT IMPLY ENDORSEMENT."

Increased Registration/Contract Filing for Fund Raisers:
The revised law adds new language requiring registration not only of independent paid fund raisers and fund raising counsel, but also of any subcontractors engaged by these parties. It also requires the filing of written contracts for the relationships between independent paid fund raiser or fund raising counsel and any other independent paid fund raisers or fund raising counsel for activities related to soliciting contributions.

The new regulations appear published in the December 18, 2006, New Jersey Register (citation 38 N.J.R. 5393) and can be accessed online at www.state.nj.us/lps/ca/adoption/charado1218.htm .

An updated summary of the New Jersey's fund raising law and regulations is available on the Center's Web site at www.njnonprofits.org/NJ_fundraising_law_2006.pdf (PDF reader, such as Adobe Acrobat, required).

The Center will continue its ongoing activities to facilitate sound policy, fair implementation, education, and compliance with the law. For more information about this or any other non-profit issue, contact us at the Center.

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