GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2023-119
SENATE BILL 429
AN ACT TO INCREASE THE QUALIFYING INCOME THRESHOLD FOR EXEMPTION FROM CHARITABLE SOLICITATION REQUIREMENTS and TO MODIFY THE DEADLINES FOR LICENSURE RENEWAL FOR CHARITABLE ORGANIZATIONS.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 131F‑3 reads as rewritten:
"§ 131F‑3. Exemptions.
The following are exempt from the provisions of this Chapter:
(3) Any person who receives
twenty‑five thousand dollars ($25,000) fifty thousand
dollars ($50,000) in contributions in any calendar year and does not
provide compensation to any officer, trustee, organizer, incorporator, fund‑raiser,
or solicitor. Compensation to any organizer or incorporator does not include
professional fees paid to licensed attorneys or licensed accountants. A
charitable organization may demonstrate to the Department that it receives less
than fifty thousand dollars ($50,000) in contributions by providing any of the
a. A copy of its most recently completed and filed Internal Revenue Service Form 990 or Form 990‑EZ or an applicable successor form.
b. A copy of the message confirming its submission of the Internal Revenue Service Form 990‑N or an applicable successor form.
c. A copy of its budget for the current year that was approved by its governing board and that includes projected revenue and projected expenses.
d. A completed financial form developed by the Department.
e. Any other evidence satisfactory to the Department.
SECTION 2. G.S. 131F‑5 reads as rewritten:
"§ 131F‑5. Licensure of charitable organizations and sponsors required.
(c) License Renewal. – The
license shall be renewed on an annual basis. Any change in information from the
original application for a license shall be filed annually on or before the
fifteenth day of the fifth calendar month after the close of each fiscal year
in which the charitable organization or sponsor solicited in this State, or by
the date of any applicable extension of the federal informational tax form filing
date, whichever is
later, provided that extensions given under this section
shall not exceed three months after the initial renewal date or eight months
after the conclusion of the year for which financial information is due at the
time of renewal. later. For the purposes of this section, a license
renewal application is considered filed as of the date shown on the postmark
affixed, or, if filed electronically, when it is sent as provided in G.S. 66‑325.
A charitable organization or sponsor whose federal informational tax
form filing date has been extended pursuant to filing the federal application
for automatic extension shall, within seven days after receipt, forward filing
the application for automatic extension, notify the Department that the license
renewal period is extended by forwarding a copy of the document granting
the extension application to the Department.
(d) Extension of Time. – For
good cause shown, the Department may extend the time for the license renewal
and the annual filing of updated information for a period not to exceed 60
days beyond the (i) fifteenth day of the fifth calendar month after the
close of each fiscal year in which the charitable organization or sponsor
solicited in this State or (ii) date of any applicable extension of the federal
informational tax form filing date, during which time the previous license
shall remain in effect. The Department may extend the time for a charitable
organization or sponsor whose federal informational tax form filing date has
been extended pursuant to filing the federal application for automatic
extension for an additional period not to exceed 60 days."
SECTION 3. Section 1 of this act is effective when it becomes law and applies to requests for exemptions filed on or after that date. Section 2 of this act becomes effective October 1, 2023, and applies to license renewals filed on or after that date. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 7th day of September, 2023.
s/ Phil Berger
President Pro Tempore of the Senate
s/ Timothy Reeder, MD
Presiding Officer of the House of Representatives
s/ Roy Cooper
Approved 2:19 p.m. this 14th day of September, 2023