What You Need To Know About Uniform Registration

Most states require that nonprofits register. During the process, a state typically requests information about an organization and its operations. While some states require registration only for those nonprofits based in their jurisdictions, others also require it for those who raise funds in the state. Thus, if your fund-raising efforts extend to several states, you may have to register with each one, even if your organization resides in a single locale.

At present, 40 states, plus the District of Columbia, require registration (see appendix 2). Not surprisingly, each state has its own unique requirements for registration. For example, some require only a one-time registration; others require an annual registration renewal. Some states want to see detailed documents; others simply require submission of Internal Revenue Service (IRS) Form 990.

This lack of consistency among the state’s registration processes often causes confusion. Fortunately, the National Association of Attorneys General and the National Association of State Charities Officials are attempting to standardize the registration process. Together, they have created a uniform registration statement (URS), which consolidates the data requirements of the states that require registration. Version 1.0 of the URS is now available and has been approved by 20 states and the District of Columbia as an acceptable form of registration. Efforts are underway to persuade the remaining states to accept the URS.

The URS is fairly straightforward. It consists of several key sections that help paint an accurate portrait of a nonprofit’s organization and its objectives.

Organizational Information

This section of the form asks for basic information such as:

• Organization name, offices, branches and affiliates,

• Addresses for all noted locations,

• Legal form, and the date and state in which the entity was established, and

• Organization year end.

Solicitation Information

This part of the form asks the following questions:

• Has the charity ever been prohibited from soliciting contributions?

• Has registration ever been revoked?

• Have there ever been legal proceedings regarding registration or solicitation?

• Has the charity ever entered into a voluntary agreement of compliance?

• Has the charity ever applied for registration before?

• Has the charity ever applied for exemption from registration?

• Where else is the charity registered and soliciting contributions?

Tax Status

As to the organization’s tax status, the URS wants to know:

• What is the charity’s IRS status?

• When was IRS exemption requested or obtained?

• Are contributions to the organization tax deductible?

• Has the charity’s tax exempt status ever been denied or modified?

Personnel

The URS seeks answers to the following questions about the organization’s directors and officers:

• What are the names, addresses and phone numbers of the organization’s directors and officers?

• Have any directors or officers ever been convicted of a crime?

• Who is responsible for contributed funds and where are those funds deposited?

• Who is the organization’s auditor and what accounting methods are used?

• Who is authorized to receive service of process?

Support and Fund Raising

The URS also seeks support and fund-raising information as follows:

• Does the organization receive funds from other exempt organizations?

• Are outside fund-raising professionals used? If so, how much are they paid?

• How much has been received in the form of contributions?

• What is the organization’s cost of conducting fund-raising activities?

Supplemental Forms
Arkansas, Michigan, Minnesota, North Dakota, Oklahoma, Pennsylvania, Rhode Island and the District of Columbia require supplemental forms to further document an organization’s profile. Thus, the complete URS package includes these forms as well as instructions on how to complete them.

URS for Charities Only
The URS is for charitable organization registration only. It does not fulfill any state’s annual report filing requirements, nor does it cover fund-raising professionals. Those engaged in fund-raising activities still need to file individual state forms if mandated by their states.

A Work in Process
The URS goes a long way toward bringing uniformity to state registration requirements. Yet costs, deadlines and attachments still vary from state to state. That’s why the complete URS package includes the basic information needed to ensure proper compliance with individual state requirements, including filing fees and due dates. Please call us if you need additional information on state registration or if you need any assistance in completing the URS or similar forms.

Appendix 1
The Uniform Registration Statement package is available from six distribution sites listed below, each an organization that has volunteered to make the forms available to any nonprofit that requests one.

The actual form is a mere three pages. But it comes packaged as a registration do-it-yourself kit with complete instructions, supplementary forms for the eight states that require additional information, and a state-by-state compilation of the basic information necessary to make a complete registration filing.

National Federation of NonprofitsLee Cassidy, Executive Director815 15th Street, NW, Suite 822Washington, DC 20005-2201202-628-4380

National Council for Nonprofit AssociationsJane Robinson Ward, Director, Programs and Administration1001 Connecticut Avenue, NW, Suite 900Washington, DC 20036202-833-5740

American Telephone Fundraisers AssociationRachel Blake7702 Leesburg Pike, Suite 400Falls Church, VA 22043703-734-1234

Association of Direct Response Fundraising CounselRobert Tigner, General Counsel1319 F Street, NW, Suite 300Washington, DC 20004-1106202-347-0929

National Society of Fundraising ExecutivesMary Smith1101 King Street, Suite 700Alexandria, VA 22314703-519-84591-800-688-FIND1-800-666-FUND

Appendix 2

States accepting the uniform registration statement:

Arkansas

California

Connecticut

Georgia

Kentucky

Louisiana

Massachusetts

Michigan

Minnesota

Nebraska

New Hampshire

New Mexico

New York

North Dakota

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

Virginia

The District of Columbia

States requiring registration but not accepting the uniform registration statement:

Alabama

Alaska

Arizona

Colorado

Florida

Illinois

Kansas

Maine

Maryland

Mississippi

Missouri

Nevada

New Jersey

North Carolina

Ohio

Tennessee

Utah

Washington

West Virginia

Wisconsin

States with no registration requirement:

Delaware

Hawaii

Idaho

Indiana (special registration required with the Department of Revenue)

Iowa

Montana

South Dakota

Texas

Vermont

Wyoming