New Proposed Rules from New Jersey on Charity Registration..Really??

Ok, it is the summer....sure we want to relax a bit, maybe catch some sun, have some hot dogs and just keep things going until September.

Well, the State of New Jersey Division of Consumer Affairs are proposing new rules surrounding donations to NJ registered tax exempt charities. As you are aware, tax exempt organizations are required to comply with donor intent when receiving contributions. So if a donor restricts their contribution for a specific program, the charity can not use the funds for any other purpose.  

The new rules would require any charity that solicits donations for more than one program, to disclose in their solicitation that the donation can be directed to a particular program or if left blank, the charity can use it for administrative or fundraising or any other program.

This new proposed rule could threaten the ability for a charity to raise funds for general operations to carry out its mission. Existing laws are in place to protect donor intent - we do not need additional regulations that could potentially cause further restrictions to NJ tax exempt organizations. It will also add costs since it will now require charities to keep separate soliciation lists for NJ donors as well as track all of this separately.

It is not law yet - NJ is currently soliciting comments through August 5, 2011. Feel free to check it out at http://www.state.nj.us/oag/ca/proposal/charpro_060611.htm

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