Fundraising is critical for most nonprofits to be able to carry out their missions and reaching out to donor populations can be challenging. Even though a nonprofit is incorporated in one state, there are legal ways to expand a donor base by conducting fundraising and operations in other states and the San Luis Obispo attorneys for nonprofits at Toews Law Group, Inc. have some important tips to help nonprofits legally fundraise in different states.
In order to operate in a state other than the state of incorporation, the nonprofit must:
- Register with the appropriate authority in each state where fundraising or operations are to be conducted
- Comply with each state’s requirements
- File all taxes and other documents required by that state in addition to filings in the home state
- Continue to file all Federal tax returns and reports as required
Each state has different requirements so be sure to do the necessary research to learn those requirements.
Be very clear about which operations are to be conducted in other states because that can determine how to register in those states. Is the nonprofit expanding operations such as opening new homeless shelters or providing certain medical services in new states? Will the nonprofit be conducting fundraising? Is real property being acquired? It’s also important to be aware of local zoning regulations and business license requirements. In the case of some operations, the nonprofit staff may be required to hold state or local issued licenses and permits.
Since the requirements for each state differ and can be complex, the Board of Directors will do best by the nonprofit to consult with an experienced nonprofit attorney at San Luis Obispo’s Toews Law Group, Inc. is a good place to start.
A nonprofit may have many reasons for conducting operations in other states, including completely relocating to a new state. While still required to comply with the destination state’s incorporation laws, nonprofits can now relocate to a different state without having to reapply for federal exempt status. Revenue Procedure 2018-15 has made it possible to move to a new state by noting the change on Form 990 and filing Form 8922-B to update the organization’s address.
While the IRS may have simplified the process of relocating a nonprofit to a different state, it still remains helpful to rely on experience legal advice to be sure the nonprofit meets all of the incorporation requirements for the new state and that it is appropriated dissolved once the move from California is complete.
The nonprofit attorneys at San Luis Obispo’s Toews Law Group, Inc. serves as counsel to dozens of nonprofit organizations fulfilling a variety of missions from family foundations to amateur sports leagues to nonprofit service organizations. Toews Law Group, Inc. also counsels charitable organizations about forming for profit subsidiaries to conduct profitable activities without jeopardizing their tax exemptions and provides legal counsel to Boards of Directors about legal, tax and management issues.
Call today for the advice you need to expand your nonprofits operations to other states.