NEW CA CHARITY REGISTRATION FORMS FEBRUARY 1, 2020

The new CA charity registration forms are available now and mandatory starting February 1, 2020.  Visit https://oag.ca.gov/charities/initial-reg to access the new forms.  The new CA forms include the CT-1 Initial Registration, RRF-1 Annual Registration Renewal, and CT-TR-1 Annual Treasurer’s Report.  The CT-TR-1 is filed with the RRF-1 for small organizations raising less than $50,000 and filing a 990 -N (Electronic Notice Postcard).  Please do not expect that these new CA forms simplify compliance in the Golden State!

RECAP OF NEW CA INITIAL CHARITY REGISTRATION FORM

The CA initial charity registration form CT-1 has significant changes throughout.  One improvement is that the form is now organized into “parts” making it easier to identify the sections of the form for information gathering:

• Part A – Identification of Organization
• Part B – Registration Fee
• Part C – List of Trustees or Directors and Officers
• Part D – Organization Activities
• Part E – Assets and Accounting Period
• Part F – Founding Documents
• Part G – Federal Tax Exempt Status
• Part H – Fundraising Professionals
• Part I – List of Questions
• Part J – Signature

KEY CHANGES TO THE CA INITIAL CHARITY REGISTRATION FORM

Although there are minor changes throughout the new CT-1 form, in my opinion there are two key changes that will require gathering addition information.

PART H

Part H, Fundraising Professionals, now provides a reference to CA code for definitions of Commercial Fundraiser, Fundraising Counsel, and Commercial Coventurer.  If an organizations engages a fundraising professional , the registration number(s) assigned by the CA Registry of Charitable Trust must be provided.

PART I

Part I, List of Questions, is an entirely new section.  There are 9 new questions added to the form:

1. List all DBAs and names the organization uses or has used.
2. List all states in which you solicit charitable donations or have registered to do so, or in which you are exempt from registration but operate.
3. Is the organization under common control, does it have a close connection with, or is it related to, any other nonprofit or for-profit organization or trust? If yes, identify by name, address, and telephone.
4. Has the organization’s tax-exempt status ever been denied, revoked, or modified? If yes, please explain circumstances on a separate sheet.
5. Has the organization’s tax-exempt status ever been suspended or revoked by the Secretary of State? If yes, explain circumstances on a separate sheet.
6. Has the organization’s corporation status every been suspended or revoked by the Secretary of State? If yes, please explain circumstances on a separate sheet.
7. Are any of the officers, directors, trustees, or employees related by blood, marriage or adoption? If yes, identify by name, title, and relationship.
8. Has the organization or any of its officers, directors, or trustees been the subject of a court or administrative proceeding in any state regarding any solicitation or registration? If yes, explain on a separate sheet.
9. Have any of the organization’s officers, directors, or trustees been convicted of any crime involving the misuse or misappropriation of funds, or any crime involving deception in the operation of a charity. If yes, identify by name and title.

KEY CHANGES TO THE CA CHARITY REGISTRATION RENEWAL FORM

The RRF-1 Annual Registration Renewal form has only a few minor changes.  Mostly clean-up in the organization identification section –  the form now requires DBAs/other names – a reasonable addition! Part A, Activities, of the  RRF-1 requests additional information to include, noncash contributions, program expenses, and total expenses. Part B, Statements Regarding the Organization, eliminated one question and added: At the end of this reporting period, did the organization hold restricted net assets, while reporting negative unrestricted assets?

Please feel free to give me a call at 319.721.1287 or email sarah@clearlycompliant to discuss the CA charity registration process.