Colorado Charitable Solicitation Rules

Summary:

Colorado has a charitable solicitation registration requirement with multiple exemptions, including exemptions for organizations with less than $25,000 in revenue and exemptions for certain types of organizations. Colorado has adopted the Charleston Principles for out-of-state charities.

Who must register?

Every charitable organization, except those exempted ... that intends to solicit contributions in Colorado by any means or to have contributions solicited in Colorado on its behalf by any other person or entity or that participates in a charitable sales promotion.

When must a charity register?

Prior to any solicitation.

Are there exemptions based on revenue?

Yes. One of the exemptions is for charitable organizations that "do not intend to and do not actually raise or receive gross revenue, excluding grants from governmental entities or from organizations exempt from federal taxation under section 501(c)(3) of the federal 'Internal Revenue Code of 1986', as amended, in excess of twenty-five thousand dollars during a fiscal year or do not receive contributions from more than ten persons during a fiscal year." However, this exemption "shall not apply to a charitable organization that has contracted with a paid solicitor to solicit contributions in this state for the organization."

Colorado has expressly adopted the Charleston Principles. In its rules for the administration of the Charitable Solicitation Act, Colorado says that "An entity with a principal place of business outside of Colorado must register with the Secretary of State, unless it is exempt [as described above] if (1) Its non-internet activities are sufficient to require registration in Colorado, or (2) The entity solicits contributions through an interactive website and the entity either: (a) Specifically targets persons physically located in Colorado for solicitation, or (b) Receives contributions from Colorado on a repeated and ongoing basis or a substantial basis through its website." Contributions to an organization are "repeated and ongoing [if] it receives at least 50 online contributions during a fiscal year." Contributions are "substantial [if] it receives the lesser of $25,000 or 1% of its total contributions in online contributions during a fiscal year."

Are there exemptions based on organization type?

Yes. The following types of organizations are exempt.

Persons that are exempt from filing a federal annual information return pursuant to 26 U.S.C. sec. 6033 (a)(3)(A)(i), (a)(3)(A)(iii), or (a)(3)(C)(i) or pursuant to 26 CFR 1.6033-2 (g)(1)(i) to (g)(1)(iv) or (g)(1)(vii).

Political parties, candidates for federal or state office, and political action committees required to file financial information with federal or state elections commissions.

Persons exclusively making appeals for funds on behalf of a specific individual named in the solicitation, but only if all of the proceeds of the solicitation are given to or expended for the direct benefit of the specified individual.

How does a charity register in Colorado?

A charity may register online at the Colorado Secretary of State's website (https://www.coloradosos.gov/pubs/charities/charitableHome.html) by filling an online form and paying a $10 registration fee.

Are there ongoing disclosure or reporting requirements?

Yes. Registered charities are required to provide annual reports, including financial summaries, to the Colorado Secretary of State's office and pay a $10 yearly fee. The financial form is "designed to match line items on the Form 990 and Form 990-EZ as much as possible."