Arkansas Charitable Solicitation Rules

Summary:

Arkansas 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?

A charitable organization, in or out of the state, shall not solicit contributions from persons in this state by any means whatsoever until the charitable organization has: (A) Registered; and (B) Provided certain information concerning the charitable organization and its solicitation activity.

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 fifty thousand dollars ($50,000) during a calendar year: (A) If all of its functions, including its fund-raising functions, are carried on by persons who are unpaid for their services; and (B) Provided that no part of its assets or income inures to the benefit of or is paid to any officer or member.

Are there exemptions based on organization type?

Yes. The following types of organizations are exempt.

Religious organizations, i.e., any bona fide, duly constituted religious entity if the entity satisfies each of the following criteria: (A) The entity is exempt from taxation pursuant to the Internal Revenue Code; and (B) No part of the entity's net income inures to the direct benefit of any individual.

Educational institutions, i.e., any parent-teacher association or educational institution, the curricula of which in whole or in part are registered or approved by any state or the United States either directly or by acceptance of accreditation by an accrediting body.

Political candidates and organizations, i.e., any candidate for national, state, or local elective office or a political party or other committee required to file information with the Federal Election Commission or any state election commission or its equivalent agency.

Governmental organizations, i.e., any department branch or other instrumentality of the federal, state, or local governments.

Nonprofit hospitals, i.e., any nonprofit hospital licensed by Arkansas or in any other state.

How does a charity register in Arkansas?

A charity may register by emailing forms and documentation to the Arkansas Secretary of State (https://www.sos.arkansas.gov/uploads/SoS_-CharitableRegistrationInArkansas.pdf).

Are there ongoing disclosure or reporting requirements?

Yes. Registered charities are required to provide annual financial reports to the Arkansas Secretary of State on or before August 1 of each year.