Center for Non-Profits - Bill Would Streamline NJ Charitable Registration Renewals for Small Groups

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Bill Would Streamline NJ Charitable Registration Renewals for Small Groups

The New Jersey Senate Commerce Committee is preparing to consider legislation that would reduce the administrative burdens of charitable registration for small groups. S-555, sponsored by Senator Leonard Connors (R-9), would allow entities that are eligible to file the "short form" registration with the New Jersey Division of Consumer Affairs to file an annual verification statement with the Division in lieu of a full renewal if certain basic information has not changed. As of this writing, the bill was scheduled to be heard by the Commerce Committee agenda on January 21, 1999 (rescheduled from January 14, when legislative activities were cancelled due to inclement weather).

New Jersey's "Charitable Registration and Investigation Act" establishes a two-tiered annual registration and reporting structure for New Jersey charities and out-of-state organizations that solicit contributions in the state. Under the Act, most organizations with contributions of $25,000 or less, and whose fund raising is conducted by persons who are not paid to solicit contributions, are eligible to file a "short form" registration with the Division of Consumer Affairs. ("Contributions" does not include bona fide membership dues provided membership is not conferred solely as a consideration for making a contribution, nor does it include monies received pursuant to a government grant or contract, or personal services rendered by a volunteer.)

On the short form, an organization must provide its name and address; whether it has engaged a professional fund raiser; its organizational purposes, and purposes for which funds are raised; its tax status; the reason it is eligible to file a short form; a copy of the organization's most recent IRS Form 990 and Schedule A, if the organization also filed those forms; and other information as required by the Attorney General. S-555 bill seeks to address concerns regarding the level of detail currently required by the Division of Consumer Affairs in annual registrations by allowing short-form filers to renew their registration via an annual verification statement if its organizational information and eligibility for short-form filing remain unchanged.

As stated in comments to proposed charitable solicitation regulations issued by the Division, the Center for Non-Profits is concerned that the current "short form" in use by the Division is more detailed than originally intended when the Charitable Solicitation and Registration Act was passed by the Legislature. We remain convinced that the registration and reporting requirements for small organizations could be streamlined without compromising the important protections provided in the Act. We are supportive of the bill in concept and are seeking technical amendments to clarify some of its provisions.

We will issue updates on this legislation as warranted via our printed publications and Web site. If you have questions in the meantime, contact Linda Czipo at the Center.

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