2025 -- H 5562

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LC001409

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- SOLICITATION BY CHARITABLE

ORGANIZATIONS

     Introduced By: Representative Justine A. Caldwell

     Date Introduced: February 26, 2025

     Referred To: House Corporations

     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.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- SOLICITATION BY CHARITABLE

ORGANIZATIONS

***

     This act would provide that charitable organizations with a gross income of one million

dollars ($1,000,000) or less can meet the required reporting and records requirements by providing

either an IRS Form 900 or other approved financial statements.

     This act would take effect upon passage.

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