On January 1, 2013, we will update our electronic filing system to give an
automatic three-month renewal extension to charitable organizations that have
filed for an extension with the IRS. Charities will no longer have to file a
separate extension with our office. Although
the software will enter an automatic three-month filing extension, charities
must still file a renewal and financial report with our office by the 15th day
of the fifth month after the organization’s fiscal year, unless the IRS
authorizes a later date for filing Form 990. We may request documentation of
the IRS authorization.
Changes
to our electronic filing system reflect amendments to the Colorado Charitable
Solicitations Act resulting from House Bill 12-1236 (PDF) as
well as changes to Rules on Charitable Solicitations, both of which take effect
on January 1, 2013.
Below is a summary of the amendments to the Colorado Charitable
Solicitations Act:
- Excludes grant writers from the
definition of a “paid solicitor,” unless the grant writer’s compensation is
calculated based on funds raised from the grant.
- A fundraiser does not have to register
with the Secretary of State if:
- The fundraising is on behalf of a specific individual, who
is named in the solicitation, and
- The proceeds of the solicitation are given to or directly
benefit that individual.
- If a charity has filed for an extension
with the Internal Revenue Service, the charity does not need to request a
3-month extension for its initial or annual financial report with the Secretary
of State.
- A charitable organization must deposit only
monetary contributions with a financial institution.
- In their opening greeting, a paid
solicitor must state their full and complete name.
- If a contribution is not
tax-deductible, a paid solicitor must disclose that information near the
beginning of a telephone solicitation, before soliciting a donation.
- $41,440 is appropriated from the
Department of State cash fund for implementation of the Act.
See the current Secretary of State rules,
including the rules about the Colorado Charitable Solicitations Act.
Summary of the 2012 rulemaking changes to charitable solicitation rules:
- Clarifies and establishes definitions.
- Requires an Employer Identification
Number (EIN) for each user account.
- Clarifies that user email addresses are
not public records.
- Provides a timeline for suspended and
revoked organizations to submit hearing requests, and allows the Secretary of
State more time to prepare for suspension hearings.
- Gives the Secretary of State
flexibility in how confirmations are delivered.
- Clarifies the purpose and content of
web-based registration certificates.
- Clarifies that the Secretary may
request a copy of the charity’s IRS Form 990. The Secretary of State can also
request that the organization file an amended IRS Form 990, or otherwise
correct any inconsistencies between the state registration statement and the
IRS Form 990.
- Implements changes made by section 2 of
House Bill 12‑1236. Specifically, if a charity files for an extension with the
IRS, the Secretary will automatically grant the charity a three-month extension
for filing its initial or annual financial report. The amendments explain when
an extension can be filed and when a solicitation notice can be amended.
- Repeals the current Rule 6, which lays
out the schedule for reminders and notices. The Secretary of State will
continue to send reminders and notices to customers, but the schedule will be
posted on the department’s website rather than in the rules.
- Makes changes to late fee amounts and
states when the Secretary of State will send uncollected late fees to State
Collections.
- Requires two years of returns for
operational, unregistered charities that wish to register.
- Provides more flexibility for the
Secretary to approve waiver requests by making stipulations for administrator
or website errors.
- Clarifies the consequences of
suspensions and revocations, as well as how suspensions and revocations will
work.
- Codifies internal administrative
procedures about withdrawals.
- Clarifies the reinstatement process and
what information a charity must provide in order to be reinstated.
- Clarifies that paid solicitor
disclosure requirements also apply to subcontractors.
- Some words and phrases in the rules
have been changed for simplicity or clarification, but the meaning is not
intended to be changed (except as described above). Cross-references in the rules
are also corrected and updated. The rules were renumbered so that they are consistent
with our rulemaking format and style.
See the Notice of Adoption (PDF),
including the complete statement of basis and purpose and adopted rules.
See additional information about the
October 25, 2012 rulemaking.
If you want to get notices or other
alerts about rulemaking, send an email with the subject line: “Charitable
Solicitations Rules Notification List” to SoS.Rulemaking@sos.state.co.us. Provide your contact information, including your name,
title, organization, and email address.
If you have questions about this policy or how it applies in your
particular situation, contact our office at 303-894-2200, option 2, or charitable@sos.state.co.us.
