The following guidelines provide background information on the most common types of filings and the related exemptions in New Hampshire.
This state has a narrow religious exemption for groups which are exempt from filing the IRS Form 990, such as churches and their integrated auxilaries. For these groups, the exemption is automatic. Depending on their activities in this state, other religious organizations, not exempt from the IRS Form 990 requirement, may need to complete a charitable registration, despite their religious identity. If an automatic exemption is not applied, the organization may submit a request for pre-registration review (link below).
This state does not have a specific threshold level of contributions which triggers registration. Organizations using paid solicitors must file a solicitation notice and obtain a permit. N.H. Rev. Stat. Ann. § 7:28-c
In this state, organizations which are required to register have the option of registering through the Unified Registration Statement, which is a standardized charitable registration accepted in many states.
Some states require organizations to appoint a “registered agent” in the state as part of the organization’s charitable registration. This state does not currently have this requirement.
This state does not require organizations to post specific language when conducting charitable solicitations.
Depending on the type and volume of activities an organization has in this state, the 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. Not every out-of-state organization needs to register. 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.
In this state, organizations that have received recognition of 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. Note that, although an organization may be exempt, if it has unrelated business taxable income (UBTI) that is subject to federal taxation, that UBTI also will be subject to New Hampshire’s income tax. [See N.H. Rev. Stat. Ann. § 77-E:1(III).]
It is also important to consider whether applying other state tax exemptions would be appropriate for your organization. Information regarding property tax exemption is available from local municipal or county governments. For an example, please see this website from the city of Nashua. An accountant or attorney can provide specific answers to questions about your organization’s eligibility for exemptions.
This state does not have a corporate franchise tax.
Charitable organizations must file the following on an annual basis: (1) Annual Report; (2)Form 990 (unless exempt); and (3) Conflict of Interest Policy.
There are varying filing requirements depending on revenue. Any charitable organization with revenue, gains, and other support of $500,000 or more that is required to file an IRS Form 990 must also submit its latest financial statements, which must comply with Generally Accepted Accounting Principles; any charitable organization with revenue, gains, and other support of $1,000,000 or more that is required to file an IRS Form 990 also must submit audited financial statement. If this poses a financial burden, the charitable organization may request an exemption.
Charitable Registration Exemption Application: https://www.doj.nh.gov/charitable-trusts/documents/pre-registration- review.pdf
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