Effective July 1, 2018, nonprofits and fundraisers that solicit contributions in Florida are subject to new accounting and recordkeeping requirements. Florida Senate Bill 740, signed into law in March 23 as Chapter No. 2018-84, made changes to the state’s charitable solicitation law to prohibit nonprofits from commingling charitable contributions with noncharitable funds.
The Florida Department of Agriculture and Consumer Service (FDACS) writes that charitable contributions “should be kept in a separate account from funds that are not used for a charitable purpose.” The law defines noncharitable funds as “funds that are not used or intended to be used for the operation of the charity or for charitable purposes.”
Under the law, nonprofits must also “be able to account for the funds” by documenting and disclosing records as required. Failure to do so may be construed as a failure to properly expend the funds.
You can find the full text of the law here.
If you solicit donations in Florida, you may want to seek guidance on the new requirements from your attorney or accountant. If you would like assistance with foreign qualifying or registering to fundraise, or any other aspect of nonprofit compliance, feel free to get in touch with one of our specialists or give us a call at 1-888-995-5895.