Utah Simplifies Charitable Solicitation Registration Obligations

On March 13, 2024, the Governor of Utah signed into law House Bill 43, which will bring about changes to how nonprofit organizations operate in the state. Starting January 1, 2025, these changes will take effect and are expected to simplify the operational processes for nonprofit organizations. As a result, this marks a new chapter in how nonprofits operate in Utah with the intent of making things easier and more efficient.

Streamlining Compliance for Charitable Organizations

Nonprofit organizations in Utah no longer have to register with the state before they can start asking for contributions. The new law, which simplifies the process for nonprofits, requires that they only annually submit a copy of their IRS Form 990 tax return. Utah will provide more guidance on this process to ensure that organizations are well-informed about the new filing procedures.

Defining Boundaries with Political Organizations.

House Bill 43 makes a clear distinction between charitable organizations and political entities. The bill specifies that political organizations, such as parties, committees, or groups mainly involved in political campaigning or expenses, are not considered "charitable organizations."

Eliminating the Burden of Charitable Sales Promotion Filings

Registered charities in Utah no longer need to notify the state about charitable sales promotions. Note that the commercial co-venturers they partner with will still need to report any charitable sales promotion activity. 

At Labyrinth, Inc., we help your organization understand and adapt to these changes, ensuring a smooth transition to the new requirements. Stay tuned for further updates as we continue to monitor and report on developments in nonprofit compliance and charitable solicitation laws.