Nonprofit regulation in Mississippi
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Nonprofit regulation in Mississippi 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.
Mississippi 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 a Mississippi organization or based out-of-state. In Mississippi a number of groups and organizations are exempt from registration. However, unless the organization is a religious organization, it must apply for exemption.[1]
Mississippi is one of 32 states that allows registrants to use either the Unified Registration Statement (URS) or the state registration form.[2] Only seven states requiring registration do not accept the URS.
- 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.[5] 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).[6]
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.”[7] Organizations granted 501(c)(4) status are political education organizations, and can engage in political lobbying. This 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.[4]
Governing agencies
The Mississippi Secretary of State is the authority in the state that oversees rules governing donor solicitation and registration.
See law: Mississippi Code Annotated sections 79-11-501 through 79-11-511
Registration requirements
Any nonprofit group or organization, unless exempt, located in Mississippi must register with the Mississippi Secretary of State. Any non-exempt nonprofit, in any state, intending to solicit in Mississippi must also register, along with anyone intending to solicit in Mississippi 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.
Exemptions
A number of groups are exempt from registering in Mississippi. Unless an exempt group is a religious institution (which are fully exempt from charitable registration laws), it must file for an exemption. Organizations can file for exemption by submitting a Notice of Exemption, which remains valid indefinitely upon confirmation.
The following groups are exempt from registering:[1]
- Religious institutions (they are not considered charitable organizations and thus not subject to charitable registration laws. Importantly, however, religious groups that file an IRS Form 990 with the IRS are not exempt and must register)
- Any organization that does not receive more than $25,000 and has no paid fundraising staff
- Educational institutions
- Membership organizations
- Appeals for individuals
- United Way
- Volunteer firefighters
- Humane societies
Procedures
Nonprofits registering in Mississippi must use the Unified Registration Statement (URS) form and the Annual Financial Statement Report Form (Form FS).[1]
Documents
The following documents are required along with your registration form:[1]
- Articles of incorporation
- Bylaws
- IRS determination letter
- Copies of all fundraising contracts
- IRS Form 990
- A financial statement reviewed by Certified Public Accountant, if the organization received $250,000 to $500,000; if less than $250,000 a statement that has not been audited or reviewed by a Certified Public Accountant
- Note: depending on answers to certain questions in URS, additional materials might be necessary
Signature and fee
A signature of the president or authorized officer or chief financial officer is required.
The registration fee is $50.[1]
Filing procedures
Registration materials must be mailed to:[1]
Mississippi Secretary of State's Office
Charities Registration
P.O. Box 136
Jackson, MS 39205
Renewal
Initial registration expires after one year and must be renewed annually. No extensions are granted. To file for renewal, use the URS along with the supplemental state form. Just as with registration, depending on the revenue received by an organization, an audit might be required. The renewal fee is $50.[1]
Financial reporting
There are no addition annual financial reporting requirements beyond the renewal requirements above.[1]
Recent news
This section links to a Google news search for the term "Mississippi + donor + privacy"
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Fishman, S. & Barrett, R. (2012). Nonprofit Fundraising Registration: The 50 State Guide. NOLO.
- ↑ "Multistate Filing Form," accessed December 17, 2014
- ↑ Guidestar, Fundraising: What Laws Apply?" accessed February 18, 2015
- ↑ 4.0 4.1 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
