Tuesday, February 11, 2014
A new Nevada law is receiving a lot of praise for the transparency it provides potential donors. The law, Assembly Bill 60, went into effect on January 1 after the Nevada Legislature approved it last year. The new law is a charitable solicitation registration law that requires Nevada nonprofit corporations to register with the secretary of state before soliciting tax-deductible charitable contributions within Nevada.
In addition to the “exact name of the corporation registered with the Internal Revenue Service, the federal tax identification number…[and] the purpose” of the organization, the registry also includes the names and contact numbers of officers and the “name or names under which it intends to solicit charitable contributions.”
At least one fan of the law has said it provides transparency by giving potential donors the information they need to determine whether a nonprofit is a “legitimate nonprofit entity.”
Is this statement true? Do charitable solicitation registration laws like Nevada’s actually provide potential donors all the information they need to make this determination? What else might a potential donor need to know?