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Nonprofit regulation in Nevada
 in Nevada |
| Civil Liberties Policy |
|---|
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| Nonprofit regulation |
| Privacy Policy Project |
| State information |
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Nonprofit regulation in Nevada involves a complex set of rules that govern nonprofit organizations and charitable giving throughout the state. Major issues surrounding nonprofit regulation nationwide include the following:
- contribution limits,
- donor disclosure, and
- the redefinition of issue advocacy.
Nevada is one of 39 states that require charitable organizations, and those intending to solicit on their behalf, to register with the state in order to solicit contributions, whether they are Nevada organizations or based out of state. In Nevada a number of groups and organizations are exempt from registration. These groups, however, must apply for exempt status; it is not automatic.[1]
Nevada is one of only seven states requiring registration that do not accept the Unified Registration System (URS). Unlike the 32 other states requiring registration that do allow the URS, those registering in Nevada must file through the state's electronic system.[1]
- Note: The following is not a how-to guide in managing an organization's registration and reporting requirements, but rather an attempt to share information about the relative degree of regulation governing nonprofit charitable activity at the individual state level. The information on this page was last updated in early 2015.
Background
According to the Foundation Center, there are over 1.5 million nonprofit organizations in the United States.[4] Section 501 of the U.S. tax code outlines which types of nonprofit organizations may be granted tax-exempt status by the Internal Revenue Service. The section of this code that provides for exemption is section 501(a), which states that organizations are exempt from some federal income taxes if they fall under sections 501(c) or 501(d), or under section 401(a).[5]
Organizations classified as 501(c)(3) are nonprofit charitable, religious and educational organizations. These include organizations like the Red Cross and Habitat for Humanity as well as the American Civil Liberties Union and the Lucy Burns Institute, which provide, as defined in the federal code, “instruction of the public on subjects useful to the individual and beneficial to the community.”[6] Organizations granted 501(c)(4) status are political education organizations, and can engage in political lobbying. Lobbying includes donations to political committees that support or oppose ballot measures, bond issues, recalls or referenda. 501(c)(4) organizations can thus engage in issue advocacy, but they are not allowed to expressly advocate for the election or defeat of a particular candidate.
While the Internal Revenue Service designates eligible nonprofit charitable organizations with a federal tax-exempt status, individual states require their own level of regulation and reporting, particularly when organizations attempt to solicit fundraising contributions. The amount of regulation required differs by state, as does the degree to which state regulations protect the privacy of individual donors. Three states, for instance, require annual copies of IRS Form 990 (schedule B), which lists individual contributors who contribute over a specified amount. Research shows that attempts to make contributions more transparent has an unintended negative effect on the number of contributors who give, as well as the amount.[3]
Governing agencies
The Nevada Secretary of State is the authority in the state that oversees rules governing donor solicitation and registration.
See law: Nevada Revised Statutes Ch. 82.382 to 82.417, Ch.598.1305
Registration requirements
Any nonprofit group or organization located in Nevada, unless exempt, must register with the Nevada Secretary of State. Any non-exempt nonprofit, in any state, intending to solicit in Nevada must also register, along with anyone intending to solicit in Nevada on behalf of a nonprofit. Non-exempt nonprofits might include traditional charitable organizations like the Red Cross or Habitat for Humanity, educational or policy organizations like the American Civil Liberties Union, or issue advocacy groups like the League of Conservation Voters.[7]
Exemptions
A number of groups are exempt from registering in Nevada. Any group, however, that meets the exemption requirements must apply for exemption using the Exemption From Charitable Business Solicitation Registration form.
The following groups are exempt from registering:[7]
- "Requests for contributions, donations, gifts, or the like, which are directed only to a total of fewer than 15 persons, annually."
- "Requests for contributions, donations, gifts, or the like, are directed only to persons who are related within the third degree of consanguinity of affinity to the officers, directors, trustees or executive personnel of the corporation."
- "Corporation is recognized as a church under the Internal Revenue Code, section 501(c)(3)."
Procedures
Nonprofits registering in Nevada cannot use Unified Registration System and must instead file using the Charitable Solicitation Registration Statement form.[7]
Documents
Organizations must provide names and addresses of executive level staff.[7]
Signature and fee
An officer signature is required.
There is no registration fee.[7]
Filing procedures
Registration materials must be mailed to the Nevada Secretary of State:[7]
101 N Carson Street Suite 3
Carson City, NV 89701
Renewal
Annual renewal is required, and may be accomplished by following the same procedures followed during initial registration. Similarly, there is no fee.[7]
Financial reporting
There are no additional financial reporting requirements above and beyond annual renewal requirements.[7]
Recent news
This section links to a Google news search for the term "Nevada + donor + privacy"
See also
Footnotes
- ↑ 1.0 1.1 Fishman, S. & Barrett, R. (2012). Nonprofit Fundraising Registration: The 50 State Guide. NOLO.
- ↑ Brennan Center for Justice, "Money in Politics," accessed January 13, 2015
- ↑ 3.0 3.1 London School of Economics, "Campaign finance laws that make small donations public may lead to fewer people contributing and to smaller donations," January 7, 2015
- ↑ Foundation Center, "Frequently Asked Questions," accessed December 17, 2014
- ↑ Cornell University Law School, "26 U.S. Code § 501 - Exemption from tax on corporations, certain trusts, etc," accessed January 13, 2015
- ↑ Cornell University Law School, "26 CFR 1.501(c)(3)-1 - Organizations organized and operated for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals," accessed January 13, 2014
- ↑ 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 Harbor Compliance, "Nevada Fundraising Registration," October 15, 2014
