Nonprofit Sector Update: New Jersey Removes Schedule B Requirement

Effective August 26, 2021, the New Jersey Division of Consumer Affairs is no longer enforcing the collection of Form 990 Schedule B with its initial and annual charitable registration filings. Schedule B contains names and addresses of major donors to an organization.

The change comes in response to last month’s Supreme Court decision in Americans for Prosperity v. Bonta, which ruled a similar requirement in California unconstitutional.

Per the Division of Consumer Affairs’ website, “In light of the United States Supreme Court’s recent decision in Americans for Prosperity v. Bonta, the Division’s Charities Registration Section has determined that the requirement that charities submit the Internal Revenue Service (IRS) Form 990 Schedule B upfront as part of their initial and yearly registrations can no longer be enforced. The Division will therefore be revising its rules, and in the interim will not be taking enforcement action based on the failure to include Schedule B or an equivalent donor schedule in such registrations. The Division will deem any entities that were previously deemed non-compliant solely because they failed to submit Schedule B or an equivalent donor schedule to be in compliance with registration requirements. All other regulations at N.J.A.C. 13:48-1.1 et seq. remain in effect and the Division continues to require the submission of all other schedules and statements.”

Nonprofits registering to solicit no longer need to include unredacted Schedule B with their CRI-150I forms. Similarly, nonprofits renewing their registrations in New Jersey do not need to include Schedule B with CRI-300R filings.

Per the Division, organizations with outstanding deficiencies relating to Schedule B are no longer deemed to be noncompliant.

Harbor Compliance tracks legislative changes and maintains regular contact with state agencies. We help client organizations achieve registration and navigate a changing landscape of at times complex requirements. For more information on our fundraising compliance solutions, click the following link:

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