Nonprofit regulation in Louisiana
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Nonprofit regulation in Louisiana 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.
Louisiana 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 Louisiana organization or based out-of-state. In Louisiana, a number of groups and organizations are exempt from registration. Unusually, only organizations with professional fundraisers must register.[1]
Louisiana has no individual state registration form of its own and is thus one of 32 states that allows registrants to use the Unified Registration Statement (URS).[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[edit]
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[edit]
The Louisiana Attorney General is the department in the state that oversees rules governing donor solicitation and registration.
See law: Louisiana Revised Statutes sections 51:1901 through 51:1909, and Louisiana Administrative Code, Title 16, Part III, section 515
Registration requirements[edit]
Any nonprofit group or organization located in Louisiana, unless exempt, must register with the Louisiana Attorney General. Any non-exempt nonprofit, in any state, intending to solicit in Louisiana must also register, along with anyone intending to solicit in Louisiana on behalf of a nonprofit. Louisiana is unusual in that only groups that have paid solicitors must register with the state. Solicitors themselves must register as well. 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[edit]
Any group that does not use paid solicitors is exempt from registering in Louisiana. In addition to that broad exemption, the following groups are exempt even if they employ solicitors:[1]
- Religious groups
- Educational groups approved by the Louisiana Department of Education
- Louisiana hospitals and voluntary health organizations
Procedures[edit]
Nonprofits and solicitors registering in Louisiana must use the Unified Registration Statement (URS) form since Louisiana has no individual state form of its own.
Documents[edit]
The following documents are required along with your registration form:[1]
- Articles of incorporation
- Bylaws
- IRS determination letter
- All contracts with paid solicitors
- List of others states in which you are registered
Unlike many states, Louisiana does not require IRS Form 990 with annual registration.[8]
Signature and fee[edit]
An authorized signature of a director or officer is required.
The registration fee is $25.[1]
Filing procedures[edit]
Registration materials must be mailed to:[1]
Public Protection Division
1885 N. 3rd Street, 4th Floor
Baton Rouge, LA 70802
Renewal[edit]
Organizations must renew annually by October 1st of each year. The following must be submitted for renewal:
- Unified Registration Statement (URS) form
- Copies of all contracts with paid solicitors
- A list of other states in which they are registered
The renewal fee is $25, and extensions are not available.[8][1]
Financial reporting[edit]
There are no additional annual financial reporting requirements beyond what is required in the annual renewal process.[1]
Recent news[edit]
This section links to a Google news search for the term "Louisiana + donor + privacy"
See also[edit]
External links[edit]
Footnotes[edit]
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 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
- ↑ 8.0 8.1 Louisiana Attorney General, "Charitable Organizations," May 19, 2009
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