NRS: CHAPTER 82A - SOLICITATION OF CONTRIBUTIONS

[Rev. 6/29/2024 2:53:48 PM--2023]

CHAPTER 82A - SOLICITATION OF CONTRIBUTIONS

GENERAL PROVISIONS

NRS 82A.010 Definitions.

NRS 82A.015 “Alumni association” defined.

NRS 82A.025 “Charitable organization” defined.

NRS 82A.030 “Charitable promotion, service or activity” defined.

NRS 82A.035 “Church” defined.

NRS 82A.040 “Contribution” defined.

NRS 82A.045 “Corporation for Public Broadcasting” defined.

NRS 82A.050 “Form 990” defined.

NRS 82A.060 “Nonprofit organization” defined.

NRS 82A.070 “Solicit” defined.

NRS 82A.080 Applicability.

NRS 82A.085 Regulations.

NRS 82A.090 Powers and duties of Secretary of State and Attorney General are cumulative.

REGISTRATION

NRS 82A.100 Charitable organization required to register before soliciting contributions; filing requirements; information filed is public record.

NRS 82A.110 Exemptions from registration requirement; declaration of exemption.

NRS 82A.120 Secretary of State required to make filings available to public and post filings on official Internet website.

DISCLOSURES

NRS 82A.200 Required disclosures.

NRS 82A.210 Exemptions.

ENFORCEMENT

NRS 82A.300 Penalty for failing to register with Secretary of State.

NRS 82A.310 Notice of alleged violation; referral of alleged violation to Attorney General; proceedings instituted by Attorney General.

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GENERAL PROVISIONS

NRS 82A.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 82A.015 to 82A.070, inclusive, have the meanings attributed to them in those sections.

(Added to NRS by 2015, 2247)

NRS 82A.015 “Alumni association” defined. “Alumni association” means an organization whose membership is limited to graduates or former students of a particular university, college or school and which raises funds to support its membership and its activities.

(Added to NRS by 2015, 2247)

NRS 82A.025 “Charitable organization” defined.

1. “Charitable organization” means any person who, directly or indirectly, solicits contributions, and who:

(a) The Secretary of the Treasury has determined to be tax exempt pursuant to the provisions of section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3);

(b) Is or purports to be established for:

(1) Any benevolent, philanthropic, patriotic, educational, humane, scientific, public health, environmental conservation, civic or other eleemosynary purpose; or

(2) The benefit of law enforcement, firefighting or other public safety personnel; or

(1) A charitable appeal as the basis of any solicitation; or

(2) An appeal that suggests there is a charitable reason for the solicitation.

2. The term does not include an organization that is established for and serving bona fide religious purposes.

3. As used in this section, “charitable reason” means:

(a) Any reason described in section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3);

(b) Any benevolent, philanthropic, patriotic, educational, humane, scientific, public health, environmental conservation, civic or other eleemosynary reason; or

(Added to NRS by 2015, 2247; A 2021, 224)

NRS 82A.030 “Charitable promotion, service or activity” defined. “Charitable promotion, service or activity” means an advertising or sales campaign conducted by a for-profit entity or business, which represents that the purchase of goods or services or participation in an activity will benefit, in whole or in part, a charitable organization, nonprofit organization or charitable purpose.

(Added to NRS by 2015, 2247)

NRS 82A.035 “Church” defined. “Church” means a religious organization which holds property for charitable or religious purposes. The term may include, without limitation, a mosque, synagogue or temple.

(Added to NRS by 2015, 2248)

NRS 82A.040 “Contribution” defined.

1. “Contribution” means the promise or grant of any money or property of any kind or value.

2. The term does not include any:

(a) Bona fide fees; or

(b) Dues or assessments paid by members, if the membership is not conferred solely as a consideration for making a contribution in response to a solicitation.

3. Nothing in this section shall be construed to require a contribution to be tax deductible pursuant to the provisions of section 170 of the Internal Revenue Code, 26 U.S.C. § 170.

(Added to NRS by 2015, 2248; A 2021, 224)

NRS 82A.045 “Corporation for Public Broadcasting” defined. “Corporation for Public Broadcasting” means the corporation established pursuant to 47 U.S.C. § 396(b).

(Added to NRS by 2015, 2248)

NRS 82A.050 “Form 990” defined. “Form 990” means the Return of Organization Exempt from Income Tax (Form 990) of the Internal Revenue Service of the United States Department of the Treasury, or any equivalent or successor form of the Internal Revenue Service.

(Added to NRS by 2015, 2248)

NRS 82A.060 “Nonprofit organization” defined. “Nonprofit organization” means an organization which qualifies as tax exempt pursuant to section 501(c) of the Internal Revenue Code.

(Added to NRS by 2015, 2248)

NRS 82A.070 “Solicit” defined. “Solicit” means to request a contribution, donation, gift or the like that is made by any means, including, without limitation:

1. Mail;

2. Commercial carrier;

3. Telephone, facsimile, electronic mail or other electronic medium or device;

4. A face-to-face meeting; or

5. A special event or promotion.

Ê The term includes, without limitation, requesting a contribution, donation, gift or the like from a location outside of this State to persons located in this State.

(Added to NRS by 2015, 2248)

NRS 82A.080 Applicability. The provisions of this chapter do not apply to a person or other entity that is a unit or an instrumentality of the United States Government.

(Added to NRS by 2015, 2248)

NRS 82A.085 Regulations. The Secretary of State may adopt regulations to administer the provisions of this chapter.

(Added to NRS by 2015, 2253)

NRS 82A.090 Powers and duties of Secretary of State and Attorney General are cumulative. The powers and duties of the Secretary of State and the Attorney General pursuant to the provisions of this chapter are in addition to other powers and duties of the Secretary of State and Attorney General with respect to charitable organizations and nonprofit organizations.

(Added to NRS by 2015, 2253)

REGISTRATION

NRS 82A.100 Charitable organization required to register before soliciting contributions; filing requirements; information filed is public record.

1. Except as otherwise provided in NRS 82A.110, a charitable organization shall not solicit contributions in this State, or have contributions solicited in this State on its behalf by another person, unless the charitable organization is registered with the Secretary of State pursuant to this section. Each chapter, branch or affiliate of a charitable organization may register separately.

2. A charitable organization that wishes to register with the Secretary of State as set forth in subsection 1 must file on a form prescribed by the Secretary of State:

(a) The information required by subsection 4; and

(b) A financial report that satisfies the requirements of subsection 5.

3. If a charitable organization is:

(a) An entity required to file an initial or annual list with the Secretary of State pursuant to this title, the charitable organization must file the information and financial report required by subsection 2 at the time of filing the initial list and at the time of filing each annual list. If the charitable organization did not file the information and financial report required by subsection 2 at the time of filing its initial list or at the time of filing its most recent annual list, it must file the information required by subsection 2 before soliciting contributions in this State, or having contributions solicited in this State on its behalf by another person, and thereafter at the time of filing each annual list.

(b) Not an entity required to file an initial or annual list with the Secretary of State pursuant to this title, the charitable organization must file the information and financial report required by subsection 2 before it solicits contributions in this State, or has contributions solicited in this State on its behalf by another person, and annually thereafter on the last day of the month in which the anniversary date of the initial filing of the information and financial report.

4. The form required by subsection 2 must include, without limitation:

(a) The full legal name of the charitable organization;

(b) The federal tax identification number of the charitable organization, if applicable;

(d) One of the following:

(1) The address and telephone number of the principal place of business of the charitable organization and the address and telephone number of any offices of the charitable organization in this State; or

(2) If the charitable organization does not maintain an office in this State or does not maintain an office, the name, address and telephone number of the custodian of the financial records of the charitable organization;

(e) The names and addresses, either residence or business, of the executive personnel of the charitable organization;

(f) The last day of the fiscal year of the charitable organization;

(g) The jurisdiction and date of the formation of the charitable organization;

(h) The tax exempt status of the charitable organization, if applicable;

(i) If the charitable organization does not file with the Secretary of State articles of incorporation or any other formation document, including, without limitation, a foreign qualification document, as defined in NRS 77.090:

(1) The purpose for which the charitable organization is organized; and

(2) The names and addresses, either residence or business, of the officers, directors and trustees of the charitable organization; and

(j) Any other information deemed necessary by the Secretary of State, as prescribed by regulations adopted by the Secretary of State pursuant to NRS 82A.085.

5. Except as otherwise provided in this subsection, a financial report must contain the financial information of the charitable organization for the most recent fiscal year. In the discretion of the Secretary of State, the financial report may be a copy of the Form 990 of the charitable organization, with all schedules except the schedules of donors, for the most recent fiscal year. If a charitable organization was first formed within the past year and does not have any financial information or a Form 990 for its most recent fiscal year, the charitable organization must complete the financial report on a form prescribed by the Secretary of State using good faith estimates for its current fiscal year.

6. All information and the financial report filed pursuant to this section are public records. The filing of information pursuant to this section is not an endorsement of any charitable organization by the Secretary of State or the State of Nevada.

(Added to NRS by 2015, 2248; A 2021, 224)

NRS 82A.110 Exemptions from registration requirement; declaration of exemption.

1. A charitable organization is not required to be registered with the Secretary of State pursuant to NRS 82A.100 during any year in which its only solicitations for contributions, donations, gifts or the like are:

(a) Directed only to a total of fewer than 15 persons annually;

(b) Directed only to persons who are related within the third degree of consanguinity or affinity to the officers, directors, trustees or executive personnel of the charitable organization;

(c) Appeals for funds to benefit a particular person or his or her immediate family named in the solicitation, but only if all the proceeds of the solicitation are given to or expended for the direct benefit of the person or his or her immediate family; or

(d) Conducted by an alumni association of an accredited institution which solicits only persons who have an established affiliation with the institution, including, without limitation, current and former students, members of the faculty or staff, or persons who are within the third degree of consanguinity or affinity of such persons.

2. A charitable organization that believes it is exempt from registration pursuant to this section must, before it solicits a contribution in this State or has a contribution solicited in this State on its behalf by another person, and annually thereafter, file a declaration of exemption on a form prescribed by the Secretary of State.

(Added to NRS by 2015, 2250; A 2017, 2190; 2021, 226)

NRS 82A.120 Secretary of State required to make filings available to public and post filings on official Internet website. The Secretary of State shall make available to the public and post on the official Internet website of the Secretary of State the information and financial report filed by each charitable organization pursuant to NRS 82A.100 and 82A.110.

(Added to NRS by 2015, 2252)

DISCLOSURES

NRS 82A.200 Required disclosures.

1. Except as otherwise provided in this section and NRS 82A.210, a solicitation for a contribution by, for or on behalf of a charitable organization or nonprofit organization, including, without limitation, a solicitation by means of electronic mail or other electronic medium or device, must disclose the following information:

(a) The full legal name of the charitable organization or nonprofit organization as registered with the Secretary of State pursuant to this title;

(b) If the charitable organization or nonprofit organization is not registered or not required to be registered with the Secretary of State pursuant to this title:

(1) The full legal name of the charitable organization or nonprofit organization; and

(2) The physical address of:

(I) The principal place of business of the charitable organization or nonprofit organization; or

(II) The custodian of financial records of the charitable organization or nonprofit organization, if the charitable organization or nonprofit organization does not have a physical address;

(1) A phone number for the physical address of the principal place of business of the charitable organization or nonprofit organization or, if the charitable organization does not have a physical address, the phone number of the custodian of financial records of the charitable organization or nonprofit organization; or

(2) An Internet address of a website for the charitable organization or nonprofit organization;

(d) A statement or description of the purpose of the charitable organization or nonprofit organization; and

(e) A statement that the contribution:

(1) May be tax deductible, including a reference to the provision of law harboring the potential tax deduction; or

(2) May not qualify for such a federal tax deduction.

2. A solicitation for a contribution by, for or on behalf of a charitable organization or nonprofit organization by means of electronic medium or device, other than electronic mail, is deemed to comply with the requirements of subsection 1 if:

(a) The information required to be disclosed pursuant to subsection 1 may be obtained from an Internet website maintained by the charitable organization or nonprofit organization;

(b) The charitable organization or nonprofit organization provides a hyperlink to that Internet website; and

(c) The statement required by paragraph (e) of subsection 1 is located conspicuously on that Internet website or on the page of that Internet website where the donor commits to the contribution.

3. A solicitation or pledge drive conducted by a charitable organization or nonprofit organization as part of a broadcast telethon, radiothon, webcast or any similar form of broadcast communication is not required to provide the disclosure required by this section throughout the broadcast event, but must disclose the information to a prospective donor before the donor commits or pledges to make a contribution.

4. A disclosure provided in connection with an appeal for funds to benefit a particular person or his or her immediate family must contain:

(a) The name of the particular person or family members who are to benefit from the appeal; and

(b) A statement that a contribution in response to the appeal may not qualify for a federal tax deduction.

(Added to NRS by 2015, 2250; A 2021, 226)

NRS 82A.210 Exemptions. The requirement to disclose information set forth in NRS 82A.200 does not apply to a solicitation that is:

1. Directed only to a total of fewer than 15 persons annually;

2. Directed to persons who are related within the third degree of consanguinity or affinity to the officers, directors, trustees or executive personnel of the charitable organization or nonprofit organization;

3. Conducted by an alumni association of an accredited institution which solicits only persons who have an established affiliation with the institution, including, without limitation, current and former students, members of the faculty or staff, or persons who are within the third degree of consanguinity or affinity of such persons;

4. Conducted by a public broadcast organization which meets the eligibility requirements established by the Corporation for Public Broadcasting;

5. Conducted by a church or one or more of its integrated auxiliaries or by a convention or association of churches that is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), and exempt from filing an annual return pursuant to section 6033 of the Internal Revenue Code, 26 U.S.C. § 6033;

6. A charitable promotion, service or activity conducted or facilitated by a for-profit entity or business located in this State if:

(a) The sale of the goods, services or participation by the for-profit entity or business is incidental to the ordinary transaction of its business; and

(b) The value of the goods, services or participation acquired by the purchaser or participant is de minimis;

7. Direct sales of tangible goods, items or services by a charitable organization or nonprofit organization in which the amount paid for the good, item or service is reasonably proportionate to the current market or face value of the good, item or service; or

8. An application or request for a grant, contract or similar funding from a foundation, corporation, nonprofit organization, governmental agency or similar entity which has an established application and review procedure for consideration of such applications or requests.

(Added to NRS by 2015, 2251)

ENFORCEMENT

NRS 82A.300 Penalty for failing to register with Secretary of State.

1. If the Secretary of State finds that a charitable organization which is required to file the information and financial report required for registration pursuant to subsection 2 of NRS 82A.100 is soliciting contributions in this State, or is having contributions solicited in this State on its behalf by another person, without having filed the information and financial report required for registration on or before the due date for the filing established pursuant to subsection 3 of NRS 82A.100, the Secretary of State shall:

(a) If the charitable organization is required to file an annual list with the Secretary of State pursuant to this title, impose the penalty for default in the filing of an annual list set forth in the provisions of this title applicable to the charitable organization and notify the charitable organization of the violation by providing written notice to its registered agent. The notice:

(1) Must include a statement that the charitable organization is required to file the information and financial statement required for registration by subsection 2 of NRS 82A.100 and pay the penalty for default in the filing of an annual list set forth in the provisions of this title applicable to the charitable organization; and

(2) May be provided electronically.

(b) If the charitable organization is not required to file an annual list with the Secretary of State pursuant to this title, impose a penalty in the amount of $50 for the failure of the charitable organization to file the information and financial report required for registration as required pursuant to subsection 2 of NRS 82A.100 and notify the charitable organization of the violation by providing written notice to the charitable organization. The notice:

(1) Must include a statement indicating that the charitable organization is required to file the information and financial report required for registration by subsection 2 of NRS 82A.100 and pay the penalty as set forth in this paragraph; and

(2) May be provided electronically.

2. If a charitable organization fails to file the information and financial report required by subsection 2 of NRS 82A.100 and pay the penalty for default as set forth in this section within 90 days after the charitable organization or its registered agent receives the written notice provided pursuant to subsection 1, the Secretary of State may, in addition to imposing the penalty for default as set forth in this section, take any or all of the following actions:

(a) Impose a civil penalty of not more than $1,000.

(b) Issue an order to cease and desist soliciting contributions or having contributions solicited on behalf of the charitable organization by another person.

3. An action taken pursuant to subsection 2 is a final decision for the purposes of judicial review pursuant to chapter 233B of NRS.

4. If a charitable organization fails to pay a civil penalty imposed by the Secretary of State pursuant to subsection 2 or comply with an order to cease and desist issued by the Secretary of State pursuant to subsection 2, the Secretary of State may:

(a) If the charitable organization is organized pursuant to this title, revoke the charter of the charitable organization. If the charter of the charitable organization is revoked pursuant to this paragraph, the charitable organization forfeits its right to transact business in this State.

(b) If the charitable organization is not organized pursuant to this title, forfeit the right of the charitable organization to transact business in this State.

(c) Refer the matter to the Attorney General for a determination of whether to institute proceedings pursuant to NRS 82A.310.

(Added to NRS by 2015, 2252; A 2021, 228)

NRS 82A.310 Notice of alleged violation; referral of alleged violation to Attorney General; proceedings instituted by Attorney General.

1. If the Secretary of State believes that a person has violated any provision of this chapter, NRS 598.1305 or any other provision of the laws of this State governing the solicitation of contributions, the Secretary of State shall notify the person in writing of the alleged violation.

2. The Secretary of State may refer an alleged violation of any provision of this chapter, NRS 598.1305 or any other provision of the laws of this State governing the solicitation of contributions to the Attorney General for a determination of whether to institute proceedings in a court of competent jurisdiction to enforce the provisions of this chapter, NRS 598.1305 or any other provision of the laws of this State governing the solicitation of contributions. The Attorney General may institute and prosecute the appropriate proceedings to enforce the provisions of this chapter, NRS 598.1305 or any other provision of the laws of this State governing the solicitation of contributions.

3. In addition to any other penalty imposed by law, in a proceeding instituted by the Attorney General pursuant to subsection 2, the Attorney General may seek an injunction or other equitable relief and may recover a civil penalty of not more than $1,000 for each violation. If the Attorney General prevails in such a proceeding, the Attorney General is entitled to recover the costs of the proceeding, including, without limitation, the cost of any investigation and reasonable attorney’s fees.

(Added to NRS by 2015, 2253; A 2021, 229)