Q: PA registration for a nonprofit bringing in less than $25k annually in contributions.
I spoke with a clerk at the Charities division of the Pennsylvania Department of State who told me that because our nonprofit brings in less than $25k in annual contributions, we’ve actually never even come close with $8k being the most, we do not need to register or file with the state of PA until we either pay someone to solicit contributions or until we bring in more than $25k in annual contributions.
While I find this surprising, I’m hoping someone can confirm the statement is in fact true.
Since our organization does not pay anyone to solicit contributions and since we have never exceeded annual contributions of even $8k that would mean we would probably never need to register or file in PA.
Being a recently domesticated npo from California, this seems a bit odd to me.
Any and all consideration in responding is greatly appreciated.
A:
There are two things going on here, and because Pennsylvania deals with them a bit differently than California does, it is a change to what you are used to.
All states have some form of keeping track of the corporations and other business entities that are based in their state. That applies to for-profit corporations, nonprofit corporations (which are called not-for-profit corporations in some states), limited liability companies (LLCs), and maybe some others (like partnerships) depending on the state. In Pennsylvania, the office that cares about keeping track of all the corporations is the Department of State, specifically the Bureau of Corporations and Charitable Organizations. It was the Secretary of State that played this role when you were in California.
Most states have additional state regulations to keep track of what charities are doing in their state. (Not all "nonprofits" are "charities," but that is a different topic.) In Pennsylvania the Charities Section of the Bureau of Corporations and Charitable Organizations keeps tabs on what charities are doing in the state. Like many states, Pennsylvania only requires charities to register with that section once they reach a certain size or do certain things. It sounds like you are not there yet. Back when you were in California, the equivalent state office was the Attorney General's Registry of Charitable Trusts. Unlike Pennsylvania, the California AG's office requires charities to register with the RCT within thirty days of receiving their first dollar of charitable donations.
It sounds like what you heard from the Department of State was about the requirement to be regulated by the Charities Section. Your organization is still required to register as a nonprofit corporation with the Department of State, just as any corporation (for profit or nonprofit) must do.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.