Annual State Compliance

While there are exceptions, generally, every nonprofit must file an Annual Report, Charity Registration Renewal, and State/Sales Tax Exemption Renewal every year. 

Annual Report

An Annual Report is a document letting the state know your entity is still active. It also updates the state of a change in address, phone number, or, in some states, board members. Typically, nonprofits file Annual Reports with the Secretary of State. While we refer to this document as an Annual Report (as so named in most states), some states do not require yearly reporting. For example, Ohio only requires nonprofits report every five years. The due date for an organization’s Annual Report depends on the state of incorporation. In some states, the initial annual report is due shortly after the organization is officially incorporated. Refer to the included chart for more information.

Failure to file an Annual Report when it is due may lead to the entity’s automatic dissolution. Once dissolved, the nonprofit is no longer a legal corporation in the state. Reinstatement often brings hefty fees, in addition to filing past-due Annual Reports. One BryteBridge client faced reinstatement fines of $1,277.50 for failure to notice their organization administratively dissolved!

Annual Reports are a vital part of an organization’s compliance.

Charity Registration Renewal

Most states requiring an initial Charity Registration also require an annual renewal. The amount of information necessary to renew varies by state. Generally, it includes similar information provided in the 990 tax-return. As a result, it’s good practice to file the 990 and Charity Registration Renewal together. The due date for an organization’s Charity Registration Renewal (if necessary) depends on the state of incorporation. Refer to the included chart for more information.

Failure to file a Charity Registration Renewal can bring fines and penalties to an organization and potential loss of its solicitation permit.

State/Sales Tax Exemption Renewal

Like the Charity Registration Renewal, renewing the State/Sales Tax Exemption ensures the organization is not paying unnecessary taxes. States are far less likely to require renewing these documents. 

Learn more about state requirements here!