Alabama Charitable Solicitation Rules

Summary:

Alabama has a charitable solicitation registration requirement with multiple exemptions, including exemptions for based on organization size and exemptions for certain types of organizations.

Who must register?

Every charitable organization, except those granted an exemption ... which is physically located in Alabama, intends to solicit contributions in or from Alabama or to have contributions solicited in Alabama on its behalf, by other charitable organizations, paid solicitors, or commercial co-venturers in or from Alabama.

When must a charity register?

Prior to any solicitation.

Are there exemptions based on revenue?

Yes. One of the exemptions is for any charitable organization which "does not intend to solicit and receive and does not actually receive contributions in excess of twenty-five thousand dollars ($25,000) during a fiscal year of the organization, provided all of its fund raising functions are carried on by persons who are not paid for such services.

However, if an organization crosses the $25,000 threshold during its fiscal year, it must register within 30 days of the date that it passed $25,000 in gross contributions.

Are there exemptions based on organization type?

Yes. The following types of organizations are exempt.

Educational institutions and their authorized and related foundations.

Religious organizations.

Political organizations.

Fraternal, patriotic, benevolent, social, educational, alumni, health care foundation, historical, and civil rights organizations, including fraternities and sororities and any auxiliaries associated with any such organizations.

Civic leagues and civic organizations which solicit contributions solely from their own membership.

Persons requesting any contributions for the relief of any individual, specified by the name at the time of the solicitation, if all of the contributions collected do not exceed ten thousand dollars ($10,000) and, without any deductions, are turned over to the named beneficiary.

Any charitable organization receiving an allocation from an incorporated community chest or united fund, provided all of the following requirements have been met:

1. The chest or fund is complying with this section relating to registration and filing of annual reports with the Attorney General.

2. The charitable organization does not actually receive, in addition to an allocation, contributions in excess of twenty-five thousand dollars ($25,000) during the fiscal year.

3. All of the fund raising functions of the charitable organization are carried on by persons who are not paid for such services.

• If the gross contributions other than the allocation received by the charitable organization during any fiscal year of the charitable organization are in excess of twenty-five thousand dollars ($25,000), the charitable organization shall within 30 days after the date it receives the contributions in excess of twenty-five thousand dollars ($25,000), register with the Attorney General as required by this section.

A local post, camp, chapter, or similarly designated element, or a county unit of such elements of a bona fide veterans organization, which issues charters to local elements throughout Alabama, or a bona fide organization of volunteer firefighters, ambulance companies, or rescue squads, or a bona fide auxiliary or affiliate of such organizations, provided all of its fund raising activities are carried on by members of the organization, family members of the members of the organization, volunteers, or an affiliate of the organization and the members receive no compensation, directly or indirectly, therefor.

How does a charity register in Alabama?

A charity may register online at the Alabama Attorney General's website (https://www.alabamaag.gov) by filling an online form and paying a $25 registration fee.

Are there ongoing disclosure or reporting requirements?

Yes. Registered charities are required to provide annual financial reports to the Alabama Attorney General's office and pay a $25 yearly fee. The organization's annual Form 990 can be used to provide the financial information.