Charity Registration and Renewal

Charity Registration and Renewal

Charity Registration, sometimes called a Permit to Solicit, is required to ask people and companies for donations in the state of operation. In other words, without filing a Charity Registration, a nonprofit cannot legally ask people for donations. Typically this registration is filed with the office of the Attorney General.

In most cases, the organization files for charity registrations after submitting its federal tax-exempt application. However, some states require an IRS Letter of Determination to register as a charity. Since the organization cannot legally ask for money until registering as a charity, it’s imperative to apply for federal tax-exempt status as quickly as possible.

Most states requiring an initial charity registration also require an annual renewal. The amount of information necessary to renew varies by state. Generally, it includes similar information provided in the 990 tax return. In some cases, states require the 990 tax return attached with the charity registration renewal. As a result, it is good practice to file From 990 and the charity registration renewal simultaneously.

Penalties For Not Filing

Failure to file a charity registration renewal can bring fines and penalties to an organization and potential loss of its solicitation permit. While the IRS charges significant fees for failing to file form 990 on time, states add a penalty and late fees for failing to file charity registration renewals.

Charity Registration is Not A Gaming License

Many states require additional registration and renewals for gambling or bingo activities. States require these special licenses in addition to charity registration renewals. Often, states without a charity registration requirement still require gaming and bingo licenses. For example, Iowa requires nonprofits to file for gaming licenses while not requiring an annual charity registration renewal.

For more information about gaming licenses, refer back to the section on UBIT reporting or contact a BryteBridge specialist.

The due date for an organization’s charity registration renewal (when required) depends on the state of incorporation. Refer to the included chart for more information, or contact a BryteBridge specialist to determine your organization’s filing requirements.

Checkout your state Reuirments!