| Chapter 387 |
| 2025 -- S 0783 Enacted 07/01/2025 |
| A N A C T |
| RELATING TO BUSINESSES AND PROFESSIONS -- SOLICITATION BY CHARITABLE ORGANIZATIONS |
Introduced By: Senators Vargas, DiPalma, Britto, LaMountain, and Murray |
| Date Introduced: March 14, 2025 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 5-53.1-4 of the General Laws in Chapter 5-53.1 entitled "Solicitation |
| by Charitable Organizations" is hereby amended to read as follows: |
| 5-53.1-4. Reports and records of registered charitable organizations. |
| (a) Every charitable organization registered pursuant to § 5-53.1-2 shall file with the |
| director a copy of the annual financial statement of the organization audited by an independent |
| certified public accountant for the organization’s immediately preceding fiscal year, or a copy of a |
| financial statement audited by an independent certified public accountant covering, in a |
| consolidated report, complete information as to all the preceding year’s fundraising activities of the |
| charitable organization, showing kind and amount of funds raised, costs and expenses incidental |
| thereto, and allocation or disbursements of funds raised. Charitable organizations having annual |
| gross income of five hundred thousand dollars ($500,000) one million dollars ($1,000,000) or less |
| shall be considered to have met the financial requirements of this section by providing either an |
| IRS Form 990 or the following financial statements for the immediately preceding fiscal year |
| compiled by an independent public or certified accountant: |
| (1) Statement of activities; and |
| (2) Statement of financial position. |
| (b) The director may require audited, annual financial statements of charitable |
| organizations with budgets of five hundred thousand dollars ($500,000) one million dollars |
| ($1,000,000) or less when the director has reasonable cause to believe that a violation of this chapter |
| has occurred. |
| (c) Any charitable organization registered pursuant to § 5-53.1-2 that is the parent |
| organization of one or more affiliates within the state, may comply with the reporting requirements |
| of subsection (a) of this section by filing a combined, written report upon forms prescribed by the |
| director. |
| (d) As used in this section, the term “affiliate” includes any chapter, branch, auxiliary, or |
| other subordinated unit of any registered charitable organization, however designated, whose |
| policies, fundraising activities, and expenditures are supervised or controlled by the parent. |
| (e) There shall be appended to each combined report a schedule, containing the information |
| that may be prescribed by the director reflecting the activities of each affiliate, that shall contain a |
| certification, under penalty of perjury, by an official of the organization, certifying that the |
| information contained therein is true. |
| (f) The failure of a parent organization to file an appropriate combined, written report shall |
| not excuse either the parent organization or its affiliates from complying with the provisions of |
| subsection (a) of this section. |
| (g) A combined report filed pursuant to this section shall be accompanied by a fee of |
| seventy-five dollars ($75.00) plus seventy-five dollars ($75.00) for each organization included in |
| the report. |
| (h) The director may accept a copy of a current annual report previously filed by a |
| charitable organization with any other governmental agency in compliance with the provisions of |
| this chapter; provided, that the report filed with the other governmental agency shall be |
| substantially similar in content to the report required by this section. |
| (i) The due date on which to submit financial information (IRS Form 990 or audited annual |
| financial statements) shall initially be extended until the IRS due date, and then until the IRS |
| extension dates, as necessary. For the initial request, the registrant shall submit to the department |
| an extension request letter with the annual registration form stating the IRS due date. For any further |
| extensions, the registrant shall submit an additional letter or a copy of the IRS request for an |
| extension form. The extensions apply to Form 990, the annual audited financial statement, and any |
| other information referred to in § 5-53.1-2(a)(9), (11) and (12). With respect to organizations that |
| submit compiled financial statements referred to in subsection (a) of this section, extensions will |
| be granted upon written request, totaling not more than six (6) months. |
| SECTION 2. This act shall take effect upon passage. |
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| LC001682 |
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