AG requests nonprofits to delay registration until March

Act 174, Hawaii’s new nonprofit registration law (HRS 467B), which is effective on Jan. 1,  requires many nonprofits organizations soliciting donations in the state to register with the Attorney General’s office, pay registration fees and make annual financial reports. The law requires all nonprofits not exempted to register before conducting any solicitations or having others solicit donations for them.

To facilitate implementing the electronic filing system, the AG has announced a grace period for those organizations subject to the new nonprofit registration law. According to the new law, all nonprofits that receive donations in Hawaii are subject to the law except:

• Any duly organized religious corporation, institution, or society;
• Any parent-teacher association or educational institution, the curricula of which in whole or in part are registered or approved by any state or the United States either directly or by acceptance of accreditation by an accrediting body;
• Any nonprofit hospital licensed by the State or any similar provision of the laws of any other state;
• Any governmental unit or instrumentality of any state or the United States;
• Any person who solicits solely for the benefit of organizations described in paragraphs (1) to (4); and
• Any charitable organization that normally receives less than $25,000 in contributions annually, if the organization does not compensate any person primarily to conduct solicitations. Contributions do not include grants from foundations or government.

The law allows the AG to require electronic registration at http://www.efile.form990.org, which the AG will do effective March 1. Electronic filing will help make information about registered charities available to the public via the Internet in searchable form.

The AG expects the electronic filing system to become available sometime between mid-January and March 1 and requests that nonprofits wait until that system becomes available to register. Organizations wishing to file sooner can contact the Tax Division of the AG’s Office to request paper registration forms. For more information, contact Hugh Jones, supervising deputy AG, (808) 586-1479 or hugh.r.jones@hawaii.gov.