State Matrix

UPDATES

WHAT YOU'LL LEARN

If you lead a faith-based nonprofit that has activities in Alaska, you must understand the following laws, regulations, and related exemptions.

Fundraising in this State

how to know (and what to do) if you're fundraising in this state

Under Alaska law, most organizations must register before soliciting in Alaska. How do you know if your organization is soliciting in Alaska? Under Alaska law, your organization is soliciting any time you make a request to an Alaska resident for a donation, even if the request is made through the internet.  

These requirements apply not only to secular organizations, but also to most faith-based nonprofits.  

However, if your faith-based nonprofit is an organization such as a church that is exempt from filing the IRS Form 990, you might be eligible for an exemption from the charitable registration requirement. You receive this exemption by applying through the Alaska Department of Law’s Consumer Protection division.  

Your organization might also be exempt from the charitable registration requirement if the organization is volunteer-run and either: (1) receives less than $5,000 annually, or (2) receives donations from fewer than ten people. (Unfortunately, the statute does not specify whether the $5,000 contribution maximum is for contributions within Alaska or total contributions.)

if you're Fundraising in Multiple states, make sure you Understand the URS.

Your organization can complete the Alaska charitable registration requirement by the Unified Registration Statement, which is a standardized charitable registration accepted in many states.  

You should consider the following pros and cons when deciding whether to use the URS. If you use the URS, you must complete the form and attachments manually and mail the completed form and related checks to Alaska. If you make any mistakes in the form or in the payment, you may end up delaying the process and having to engage in additional communication with the Department to complete the registration.  

Alaska also allows charities to file online, both for the initial registration and subsequent renewals. You face a lower risks of omitting information or making mistakes in the payment if you use the online method because the system will not allow submission if all information and payment are not complete. Additionally, if you use the online option for the initial registration, the system will save the submission and that can streamline the renewal process in the future.

evaluate whether you'll need a Registered agent

Some states require organizations to appoint a “registered agent” in the state as part of the organization’s charitable registration. This state currently has this requirement.

follow the rules about communicating with the public

This state does not require organizations to post specific language when conducting charitable solicitations unless the organization is working with a professional fundraiser.

Charitable REgistration statute

Charitable registration exemption statute

After you've registered–the Annual report requirement

Conducting Activities or Programs in this State

UNDERSTAND THE Business Registration REQUIREMENTS

Depending on the type and volume of activities an organization has in this state, an organization may also need to register as an out-of-state business (sometimes called a “foreign business”) with the secretary of state or another state agency.  

These foreign business registration requirements are separate from the charitable registration. An attorney can assist the organization in determining whether its connections with this state are significant enough to trigger the foreign business registration requirement. Examples of activities which might trigger this requirement include having employees physically located in the state, conducting programs in the state, and having an office in the state. When in doubt, organizations are encouraged to register, particularly if they receive any revenue from Alaska.

Business registration statute

Get Acquainted with State and Local Tax Exemptions

State and local taxes

In this state, organizations which have received federal income tax exemption under IRC Sec. 501(c)(3) are automatically exempt from state income tax. Some organizations may choose to send a copy of their IRS determination letter to the state department of revenue to indicate the organization’s position that it qualifies for the exemption.

Corporate Income Tax Statute

CORPORATE FRANCHISE TAX STATUTE

This state does not have a corporate franchise tax.

Sales and use tax

sales tax treatment of unrelated business income tax

state sales and use tax and required registrations

What This State Says about Nonprofits

A FINAL NOTE: OTHER HELPFUL INFORMATION

background

state nonprofit corporation law

conflict transactions

director standards of conduct

Members: Eligibility and Statutory Powers

indemnification

BEFORE YOU GO: OTHER SPECIAL REQUIREMENTS

useful links

Reviewed by

An attorney licensed in Alaska

Legal disclaimer

This resource contains general educational information related to legal concepts, but this information does not constitute legal advice. Anyone seeking legal advice is strongly encouraged to consult with a licensed attorney regarding any of the matters discussed herein. Although licensed attorneys work with Napa Legal, Napa Legal is not a law firm and does not undertake legal representation on behalf of any clients. Further, no licensed attorney working with or on behalf of Napa Legal agrees to undertake legal representation on behalf of any client unless the terms of such representation are set forth in a separate, written representation agreement.