NH RSA 7:19, et seq. and Jus 402.01 require all New Hampshire-based charities and any out-of-state charities with reasonable minimum contacts to New Hampshire to register with and report to the Office of the Attorney General, Charitable Trusts Unit.

The CTU’s administrative rules define “New Hampshire-based” to mean any charity created under the laws of New Hampshire or an entity created or formed outside of New Hampshire that has its principal place of operations in New Hampshire. “Reasonable minimum contacts” means that an out-of-state charity conducts more than de minimus operations in New Hampshire; specifically targets, through internet or non-internet means, New Hampshire residents to make donations; or receives donations from New Hampshire residents on a repeated and ongoing or substantial basis.

The registration and reporting requirement does not apply to entities listed in Jus 402.01(c), including certain governmental entities, churches, and their integrated auxiliaries.

What is the definition of a "charity"? Do I need to register?

Has your organization applied to the Internal Revenue Service to become a Section 501(c)(3) organization, and/or have you received your Letter of Determination from the IRS confirming your 501(c)(3) status?
Are you formed for any of the following purposes: benevolent, philanthropic, patriotic, educational, humane, scientific, public health, environmental conservation, civic?
Does your organization make a charitable appeal as the basis of any solicitation or any appeal that suggests that there is a charitable purpose to any solicitation?
Is the primary purpose/activity of your organization charitable in nature?

If the answer to any of these questions is Yes, you are required to register with the Charitable Trusts Unit. RSA 7:21, I. If you are not certain, you may file a Request for Pre-Registration Review (Form NHCT-10).

How do I register with the Charitable Trusts Unit?

Complete an Application for Registration (Form NHCT-11), attaching all required documents (governing documents, list of members of the board of directors, financial information, IRS Letter of Determination), and submit to the Charitable Trusts Unit together with a $25 filing fee.
Refer to the forms, instructions, and instructional video.

Am I required to use the online forms for registration and annual reporting and other submissions to the Charitable Trusts Unit, or can I submit the information by mail using a paper form?

While use of the online forms currently is optional, we strongly encourage use of the online forms to ensure accurate, complete, and timely submissions. The use of the online forms likely will be mandated after a period of implementation.

Whom do I call if I have questions regarding the registration process?

We suggest you read the instructions for the registration application (NHCT-11) first. If you still have a question, contact the Charitable Trusts Unit by email or telephone.

After registration, what else is required of my organization?

Charitable organizations must file an annual report with the Charitable Trusts Unit, as required by RSA 7:28,II. Once you are registered, you will receive a signed Certificate of Registration, together with a cover letter stating when your first annual report is due.Refer to the form, instructions, and an instructional video.

Additional Filings:

If your organization performs health care services, it must perform a community needs assessment at least every five years and file a community benefits report (NHCT-31) on an annual basis. RSA 7:32-c-32-l.
If your organization receives annual gross income of $500,000 or more, it may be required to file an additional financial report or audit. RSA 7:28 III-a, b, and c.
If your organization issues charitable gift annuities, it must file an annual certification (NHCT-15). RSA ch. 403-E.

If your organization conducts charitable gaming, it must submit materials to the Lottery Commission. RSA 287-D-5.

I know I must contact several governmental agencies to start a charity. What are the agencies, and in what order, should I contact?

New Hampshire Secretary of State, Corporation Division, (603) 271-3244, to file your articles of incorporation, if you choose to incorporate.
Town or City Clerk where the organization is based to file a copy of the articles of incorporation. If the organization is not incorporated, file with the clerk the organizational document and bylaws.
Internal Revenue Service, to file Form 1023 or 1023-EZ or to apply for recognition as a 501(c)(3) organization.
Attorney General, Charitable Trusts Unit, to file your application for registration (NHCT-11) (See the Forms page). Note: You can file your application with the Charitable Trusts Unit at the same time or prior to filing with the IRS. You may begin fundraising as soon as your organization is registered with the Charitable Trusts Unit, even though the IRS has not yet issued a letter of determination.

Because revenue in this past year was equal to or exceeded $500,000, but was less than $2 million, our charity is required to submit GAAP financial statements. What are GAAP financial statements?

Financial statements prepared in accordance with generally accepted accounting principles ("GAAP") included the entity's:

Statement of Financial Position (Balance Sheet)
Statement of Activities (Income Statement); and
Statement of Functional Expenses.

The GAAP financial statements may also include (and it is recommended that they include) a Statement of Cash Flows. Please note that GAAP financial statements should not reflect a "cash basis." Rather, the statements should include closing year end journal entries that would account for accruals, such as Accounts Receivables, Depreciation, Accounts Payables, and Salary & Wages, earned but not yet paid.

Please note that the charity does not need to engage a professional CPA to prepare GAAP financial statements, and it is not necessary that the financial statements include disclosures.

What is a pecuniary benefit (conflict of interest) transaction?

A "pecuniary benefit transaction'" means a transaction with a charitable organization in which a director, officer, or trustee of the organization has a financial interest. The financial interest can be direct or indirect. An indirect financial interest is one between the organization and a family member, employer or business of the director, officer or trustee. RSA 7:19-a.

There are detailed requirements that a charitable organization must meet before it can enter into a pecuniary benefit transaction. There are also some exceptions. These are discussed in the Guidebook for Charitable Organizations .

How do I dissolve a charity?

A New Hampshire charitable organization that decides to wind up operations must take certain steps to dissolve and distribute any remaining assets. These steps occur after the board of directors votes to cease operations but before the remaining assets are distributed. The winding up process involves the Charitable Trusts Unit, the Secretary of State and the Internal Revenue Service.

The basic steps to dissolve a New Hampshire nonprofit corporation are as follows:

Vote to dissolve is made by a two-thirds vote of a quorum of the directors and, if required by the bylaws, a two-thirds vote of the organization's members. The vote must include a plan for distribution of its assets and payment of its debts. RSA 292:10-a, I.
File a Statement of Dissolution, Form NP-5 , with the Secretary of State.
If the organization was recognized as a 501(c)(3) entity, file a final Form 990 or 990-EZ with the Internal Revenue Service.
File a final NHCT-12, including Schedule E, with the Charitable Trusts Unit of the Attorney General's office. See N.H. Admin. R. Jus 407 (Withdrawal).

* Assets must be distributed in accordance with the articles of incorporation and bylaws of the dissolving charitable organization. The assets are also subject to the terms of any restriction pertaining to them. The distribution of any restricted assets may require court approval. The assets of a charitable organization may not be distributed to individuals. Failure to distribute properly the assets of a charitable organization upon dissolution may lead to legal action by the Attorney General.

I would like to raise funds for an individual in need in my community. What do I need to do?

People are frequently motivated to raise money to provide financial assistance to individuals in their community who encounter an unexpected financial difficulty. For example, when a young child is diagnosed with a serious illness people often want to raise money for that child's medical care. Fundraising for an individual is not a "charitable" purpose; a charity cannot be formed for the benefit of an individual. As such, during a fundraiser to benefit an individual you cannot refer to donations as tax deductible to the donor, and those donations must be claimed as ordinary income. Furthermore, if you open a bank account to hold the funds raised you may need to provide your personal information, including your social security number, and you could be personally liable for any lost or misused funds. You should talk to the bank in question regarding their policies and procedures before opening such an account. Fundraising for Individuals Guidelines are found here.

I am raising money on a social media platform (GoFundMe, Facebook, etc.) for families that were burned out of their home last week. Do I need to register with the Charitable Trusts Unit?

No. As you are raising money to benefit a definite class of people (several families), it is not considered to be a charitable purpose, and you are not required to register. As discussed above, the donations would not be tax deductible, and you therefore may not refer to donations as "tax deductible" to the donor. For more information, review the Fundraising for Individuals Guidelines .

I am raising money on a social media platform (GoFundMe, Facebook, etc.) for families that have lost their homes due to forest fires. Do I need to register with the Charitable Trusts Unit?

Yes. As you are raising money for a charitable purpose to benefit an indefinite class of people, you are required to register and report to the Attorney General, Charitable Trusts Unit. If you have any questions about whether you are required to register, you may seek a determination from the Charitable Trusts Unit by filing a Request for Pre-Registration Review (Form NHCT-10) (See the Forms page).

My organization has established a website, and we accept online donations for a charitable purpose. Do we need to register?

It depends. If your organization is headquartered in New Hampshire, and your website offers a link to make donations to the organization, registration is required, even if you do not otherwise engage in fundraising in New Hampshire through events or solicitation campaigns.

If your organization is not headquartered in New Hampshire, and your website offers a link to make donations to the organization, registration is not required unless the organization (1) performs more than de minimis operations in New Hampshire; (2) engages in additional charitable solicitation in New Hampshire through events or solicitation campaigns; (3) targets persons in New Hampshire by, for example, sending emails messages or other communications that promote the website to persons in New Hampshire; or (4) receives contributions on a repeated and substantial basis from multiple New Hampshire residents. Send us a request for preregistration review (Form NHCT 10), and we will determine whether registration is required.

If I collaborate in fundraising with an existing charity that has been determined by the IRS to be exempt under section 501(c)(3) of the Internal Revenue Code, do I need to register?

Probably not. Indeed, it may be a more efficient use of resources and more effective to collaborate with a local charity that offers a similar mission. However, in order to represent in any way that you are fundraising on behalf of a charity, you must first obtain written authorization to do so by that charity. See RSA 7:28-f. Thus, you may not fundraise for an existing charity without first obtaining the charity’s written authorization.

It depends on whether the charity has a separate identity from the fiscal sponsor.

While fiscal sponsorship arrangements can vary, generally, a fiscal sponsor is a nonprofit with tax exempt status under section 501(c)(3) of the Internal Revenue Code that provides fiduciary oversight, financial management, and other administrative services either to provide "back office" support to a small charitable endeavor or to help build the capacity of a charitable project during its start-up phase before it is recognized as tax exempt. One of the responsibilities of a fiscal sponsor is to receive charitable donations designated for the sponsored project and then spend funds for or grant funds to that project. The donations are reported as revenue on the fiscal sponsor's annual information return (e.g., IRS Form 990).

If a charity is simply a program of a fiscal sponsor with no separate identity, and the fiscal sponsor is registered with the Charitable Trusts Unit, the charity is not required to separately register and submit annual reports. However, the charity must separately register and file annual reports with the Charitable Trusts Unit if the charity has filed articles of agreement with the New Hampshire Secretary of State, or is an unincorporated association, or has obtained its own federal Employer Identification Number, or if the Internal Revenue Service has issued a determination letter recognizing the charity as tax exempt.

Please note that in either event, the charity should enter into a written agreement with the fiscal sponsor that outlines the responsibilities of the parties.