North Dakota allows for the formation of charitable organizations (NDCC ch. 50-22). A charitable organization is a type of nonprofit that operates for the benefit of the public or a specific cause and participates in solicitation for charitable purposes.
Charitable organizations may be formed to serve the public good, such as for philanthropic, religious, educational, cultural, or other public service reasons. Charitable organizations are:
- Nonprofit organizations that have 501(c)(3) tax exemption
- Typically community-driven and supported, with funds raised going back into the community
The following are not considered charitable organizations:
- An organization that solicits funds for an institution of higher learning, such as a college or university.
- An organization that uses unpaid volunteers to solicit funds for a political subdivision or other government entity or for a civic or community project in which the contributions received are used solely for the project and none of the contributions pass on to the benefit of any individual.
- A private or public elementary or secondary school.
- A charitable organization or person that solicits contributions for a specific person if all contributions received are transferred within a reasonable time after receipt to the person named or that person’s parent, guardian, or conservator with no restriction on expenditure of the contributions and with no deduction.
- A religious society or organization that is exempt from filing a federal annual information return pursuant to Internal Revenue Code section 6033(a)(2)(A) (i) and (iii) [26 U.S.C. 6033(a)(2)(A)(i) and (iii)] or Internal Revenue Code section 6033(a)(2)(C)(i) [26 U.S.C. 6033(a)(2)(C)(i)].
- Any candidate for national, state, or local elective office or political party or other committee required to file information with the federal election commission, a state election commission, or an equivalent office or agency.
Charitable Organization Registration
You may register your charitable organization by filing a Charitable Organization Registration Statement form in the FirstStop Portal. You must register your organization as a nonprofit with the Office of the Secretary of State before filing a Charitable Organization Registration Statement.
A charitable organization cannot operate and solicit contributions until the registration has been approved and is on file with the Secretary of State.
Information about what needs to be included in the Charitable Organization Registration Statement can be found in the Begin & Maintain a Charitable Organization Guide.
A financial report detailing the organization’s operation for the 12 months immediately prior to filing the registration statement must be included with the registration. If no financial information is available, a statement stating that the information is not available is required.
Fee
Charitable Organization Registration - $25
Charitable Organization Annual Reports
NOTE: The Nonprofit Annual Report and Charitable Organization Report are 2 separate reports. A nonprofit with a charitable registration needs to file 2 reports each year with the Secretary of State - a Nonprofit Annual Report and a Charitable Organization Annual Report.
Charitable organizations must file an annual report and keep organizational information up-to-date with the Secretary of State. The annual report must be filed on or before September 1 of each year. If the initial charitable organization registration is filed in July or August, the first annual report is due September 1 of the following year.
The annual report is a filing and you can complete it yourself through the FirstStop Portal. If your organization receives a letter from another party offering to assist you with filing annual reports and is asking for large fees and expressing a sense of urgency, be skeptical. Read the news release, Secretary of State Warns of Misleading Annual Report Letters from Third Parties, for more information and to see an example of a third-party solicitation letter.
The following information needs to be included in the annual report:
- Organization name
- Principal office and mailing addresses
- Telephone number
- Reporting date
- Professional fundraiser name(s), compensation, and profits from fundraising
A charitable organization's annual report must also include a financial statement covering the 12-month period immediately before the end of its previous fiscal (accounting) year. Additional details can be found below in the What needs to be provided for the financial statement? section.
The information provided in the annual report must either be at the close of the business on :
- December 31 prior to the annual report filing deadline
- Last day of the fiscal (accounting) year prior to the filing deadline of the annual report
Specific documentation for the financial statement that is required to be uploaded with or attached to the Charitable Organization Annual Report must be either:
(choose only 1 of the below to submit)
IRS Return of Organization Exempt from Income Tax (Form 990)
Only provide pages 1, 9 (Statement of Revenue), 10 (Statement of Functional Expenses), and 11 (Balance Sheet).
Similar documents that contain the following information required by NDCC § 50-22-04(2):
- Statement of income and expense (total receipts and total income from all sources
- Balance sheet
- Statement of functional expenses listing:
- Cost of management and general
- Program services
- Cost of fundraising
- Cost of public education
- Funds or properties transferred out of state
- Total net disbursed or dedicated within North Dakota
- Total compensation paid to employees by the charitable organization and all its affiliated organizations
The filing fee for the annual report is $10.
If you cannot meet the deadline to file your charitable organization’s annual report, you may submit an extension request to the Secretary of State through the FirstStop Portal. The application for extension must be received by the Secretary of State prior to the filing deadline.
An extension may be granted for 1 year, or it may be granted permanently as a standing extension. A standing extension may only be granted to a charitable organization that has a fiscal (accounting) year that ends in June, July, or August. The filing deadline may not be extended past December 1.
If a charitable organization fails to file its charitable organization annual report, the charitable organization registration will become inactive and the organization may not solicit in North Dakota.
To become a registered charitable organization again, you must:
- File an annual report that includes the most recent financial statement and pay a $10 filing fee
- File a Charitable Organization Reregistration Statement that includes the most recent financial statement and pay a $25 filing fee
Charitable Organization Registration Doesn't Expire
A charitable organization’s registration does not expire, but it can be revoked. The Secretary of State may deny or suspend a charitable organization’s application for registration if the organization fails to file the required annual report information, fails to maintain its business registration as active and in good standing, or if the charitable organization violates state law.
Solicitations and Contributions
Solicitation of contributions refers to requests for contributions that will be used for a charitable purpose by the organization. This may include advertising using various media, recordings, or announcements.
A contribution is provided in response to a solicitation and includes cash or the promise, grant, or pledge of any money, credit, assistance, or property of any kind or value, including the promise to pay.
If a charitable organization offers goods and services to the public as a method for obtaining contributions, the contribution is considered the difference between the cost of the goods and services to the charitable organization and the price at which the goods or services are resold to the public.
A contribution does not include fees, dues, or assessments paid by members of an organization if:
- Membership in the organization is not in exchange for a contribution.
- The contributor’s membership does not have any additional benefit other than the right to vote or otherwise participate in the organization and the right to receive written information.
Your organization may choose to hire a professional fundraiser to assist with fundraising activities. Visit Professional Fundraisers to learn more about their registration requirements.
The Secretary of State or the Office of the Attorney General may examine the accounts of any charitable organization soliciting funds within North Dakota. Every charitable organization must maintain complete and accurate records of its accounts that can be provided if requested by the Secretary of State.
Any solicitation violation or failure to properly file any report, tax return, or other information as required by state law regulating charitable organizations is considered a class A misdemeanor. Conducting a solicitation after a registration is revoked is a class C felony.
Penalties for these violations include civil penalties up to $5,000 per violation and the denial of registration for a period of up to 5 years.
For more information, contact the Consumer Protection and Antitrust Division at:
Office of the Attorney General Consumer Protection and Antitrust Division
1720 Burlington Drive, Suite C
Bismarck, ND 58504-7736
Phone: 701-328-3404
Email: [email protected]
Web: attorneygeneral.nd.gov
Cancel a Charitable Organization Registration
Charitable organizations may file a Charitable Organization Cancellation in the FirstStop Portal to cancel their registration.
Disclaimer: Consultation with an attorney, tax professional, or business advisor is recommended to ensure appropriate consideration of all the legal implications when dissolving, canceling, or withdrawing your charitable organization registration
Disclaimer: Content provided on this website is for informational purposes and not intended as advice. Consultation with legal, tax, and/or business professionals is recommended to ensure appropriate consideration of the implications of your decisions.