Utah’s HB 43 Eases Nonprofit Solicitation Rules, Adds Form 990 Filing
Utah’s House Bill 43, signed on March 13, 2024, reforms the Charitable Solicitations Act. Effective May 1, 2024, nonprofits not incorporated or registered as foreign entities in Utah are exempt from charitable solicitation registration, and pre-notification for charitable sales promotions is eliminated. Starting January 1, 2025, Utah-registered nonprofit corporations must include unredacted IRS Form 990s (or 990-EZ, 990-N, 990-PF) with annual corporate filings, unless IRS-exempt. Political organizations are explicitly excluded from Utah’s Charitable Solicitation Act. These changes reduce administrative burdens for nonprofits while maintaining transparency for those incorporated in the state.
For further details, please refer to the Utah Charities Announcement.
Key Provisions Of HB 43
Removal of Charitable Solicitation Registration Requirement (Effective May 1, 2024):
- Charitable organizations are no longer required to register with the Utah Division of Consumer Protection prior to soliciting contributions unless they are incorporated in Utah or registered as a foreign nonprofit corporation in Utah (i.e., authorized to conduct affairs in the state under Utah Code § 16-6a-1503).
- This eliminates the need for out-of-state nonprofits, not registered as foreign entities in Utah, to file a separate charitable solicitation registration, significantly reducing compliance burdens.
Elimination of Pre-Notification for Charitable Sales Promotions (Effective May 1, 2024):
- The requirement to pre-notify the state about charitable sales promotions (e.g., campaigns where a portion of proceeds benefits a charity) has been removed, simplifying fundraising activities.
IRS Form 990 Filing for Corporate Registration (Effective January 1, 2025):
- Nonprofit corporations incorporated in Utah or registered as foreign nonprofit corporations in Utah must submit unredacted copies of their IRS Form 990, 990-EZ, 990-N, or 990-PF (as applicable) as part of their annual corporate registration with the Utah Division of Corporations.
- This requirement applies unless the organization is exempt from filing a Form 990 with the IRS (e.g., certain religious organizations or those with minimal revenue qualifying for Form 990-N).
- The Form 990 must cover the same period as the annual registration report and be filed within 75 days of the nonprofit’s fiscal year-end (or the IRS extended due date, if applicable).
Exclusion of Political Organizations (Effective May 1, 2024):
- Political organizations (e.g., 527 organizations under the IRS Code) and fundraising for political purposes are explicitly excluded from the Charitable Solicitations Act, clarifying that these entities are not subject to its registration or oversight requirements.