Hawaii Nonprofit Compliance

• Charitable organizations that normally receive less than $25,000 in contributions annually and do not compensate any professional solicitor or professional fundraising counsel
• Any duly organized religious corporation, institution, or society that is exempt from filing Form 990 with the IRS
• Parent-teacher associations
• Any educational institution that is licensed or accredited by any of the following licensing or accrediting organizations or their successor organizations:
  
  • Hawaii Association of Independent Schools
  • Western Association of Schools and Colleges
  • Middle States Association of Colleges and Schools
  • New England Association of Schools and Colleges
  • Higher Learning Commission
  • Northwest Commission on Colleges and Universities
  • Southern Association of Schools and Colleges
  • The National Association for the Education of Young Children
  • Cognia
• Any organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code expressly authorized by, and having an established identity with, an accredited education institution provided that the organization's solicitation of contributions is primarily directed to the students, alumni, faculty, and trustees of the institutions and their respective families
• Any nonprofit hospital licensed by the State or any similar provision of the laws of any other state
• Government agencies
• Congressionally chartered organizations that submit financial reports to the Secretary of Defense

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Hawaii Revised Statutes § 467B-11.5

Exemptions do not expire as long as the organization continues to qualify under the exemption criteria.

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4-6 weeks

Domestic Applicants:

• Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement.
• Appoint a registered agent to receive legal documents in Hawaii.
• If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application.
• Look through the list of required attachments and make sure that you have each required document in hand before starting the registration application.

Foreign Applicants:

• Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement.
• Appoint a registered agent to receive legal documents in Hawaii.
• If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application.
• Look through the list of required attachments and make sure that you have each required document in hand before starting the registration application.
• If you will foreign qualify in Hawaii, obtain a certificate of good standing from your home state to submit during the foreign qualification process. The certificate cannot be more than 60 days old when filing foreign qualification documents.

Domestic Applicants:

1. File entity formation documents with the Hawaii Business Registration Division (BREG).
2. Create a 990 online account and complete the charity registration.

Foreign Applicants:

1. Determine whether or not your charity will need to foreign qualify based on your activity in Hawaii. If not required, skip to number 3.
2. File foreign qualification documents with the Hawaii Business Registration Division (BREG).
3. Create a 990 online account and complete the charity registration.

• IRS form 990
• Audited financials (if applicable)
• Articles of incorporation
• IRS determination letter
• List of officers and directors
• List of other states where registered to solicit

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Depends on gross revenue:

• $0 for less than $25,000 in gross revenue
• $25 for at least $25,000 but less than $50,000 in gross revenue
• $50 for at least $50,000 but less than $100,000 in gross revenue
• $100 for at least $100,000 but less than $250,000 in gross revenue
• $150 for at least $250,000 but less than $500,000 in gross revenue
• $200 for at least $500,000 but less than $1,000,000 in gross revenue
• $250 for at least $1,000,000 but less than $2,000,000 in gross revenue
• $350 for at least $2,000,000 but less than $5,000,000 in gross revenue
• $600 for $5,000,000 and over in gross revenue

• Charities that file Form 990, 990-EZ, or 990-PF must renew annually within 10 business days of the date the charity files its 990 with the IRS. 990s are due by the 15th day of the 5th month after the close of the organization's fiscal year.
• Charities that file a Form 990-N or that are not required to file a Form 990, 990-EZ, or 990-PF must renew by the 15th day of the 5th month following the close of their fiscal year.
• There is no official start to the renewal period, so renewals may be submitted as soon as financials become available for the most recently completed fiscal year.

Hawaii honors extensions granted by the IRS to file Form 990. IRS extensions are for an additional 6 months. Organizations are not required to submit proof of an IRS extension unless requested by the Department, at which point they will have 20 days to provide the Department with a copy.

Organizations can renew an expired registration as long as the registration status with the Tax and Charities Division reads as expired. The Attorney General may assess late fees of $20 per day up to a maximum fee of $1,000 against an organization for the failure to timely file its renewal.

• IRS form 990
• Audited financials (if applicable)

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1-2 business days

File a notice of entry into contract at least 10 days prior to the commencement of the charitable sales promotion.

Hawaii Revised Statutes § 467B-5.5

An authorized representative of the charitable organization and the commercial co-venturer must sign the written consent, and the terms of the written consent must include the following:

1. The goods or services to be offered to the public;
2. The geographic area where, and the starting and final date when, the offering is to be made;
3. The manner in which the name of the charitable organization is to be used, including any representation to be made to the public as to the amount or per cent per unit of goods or services purchased or used that is to benefit the charitable organization;
4. A provision for a final accounting on a per unit basis to be given by the commercial co-venturer to the charitable organization and the date when it is to be made, which date shall be no more than ninety days after the end of the charitable sales promotion; and
5. The date when and the manner in which the benefit is to be conferred on the charitable organization.

Follow the instructions received from the Hawaii Tax and Charities Enforcement Division.

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• $20/day late fee (not to exceed $1000) + standard renewal fee(s) for each missing filing
• Standard renewal fee depends on gross revenue:
  • $0 for less than $25,000 in gross revenue
  • $25 for at least $25,000 but less than $50,000 in gross revenue
  • $50 for at least $50,000 but less than $100,000 in gross revenue
  • $100 for at least $100,000 but less than $250,000 in gross revenue
  • $150 for at least $250,000 but less than $500,000 in gross revenue
  • $200 for at least $500,000 but less than $1,000,000 in gross revenue
  • $250 for at least $1,000,000 but less than $2,000,000 in gross revenue
  • $350 for at least $2,000,000 but less than $5,000,000 in gross revenue
  • $600 for $5,000,000 and over in gross revenue

Charities violating Hawaii Revised Statutes §467B-1 - §467B-17 are subject to an investigation by the Attorney General who can:

• deny, suspend, or revoke an organization's registration or approved exemption
• assess administrative penalties of up to $1,000 for each violation with additional penalties of up to $100 per day for each day the violation continues
• place registration on probation for any period subject to any conditions deemed appropriate
• cease and desist orders

Upon application from the Attorney General, the court may issue one or more of the following judgments: 

• temporary or permanent injunction
• appoint receiver 
• restitution
• other relief as deemed appropriate to ensure due application of charitable funds

A first-time violation of this Chapter is punishable by a fine of up to $500 and/or imprisonment for up to 6 months. Subsequent offenses are punishable by a fine of up to $1,000 and/or imprisonment for up to 1 year. Any violation of this chapter is considered to have engaged in an unfair and deceptive act and violates Hawaii Revised Statute §480-2.

Organizations can renew an expired registration as long as the registration status with the Tax and Charities Division reads as expired. Periodically, late registrations will be audited and those that have not renewed for a reasonable amount of time will have their registration suspended by the Enforcement Division. An organization will receive a notice from the Division via certified mail that alerts them of the suspension and provides a list of the documents and fees that must be submitted to reactivate the registration.

Email ATG.Charities@hawaii.gov to update fiscal year. You will then need to file the short year in the efile990.org system.

Written Request for Deactivation Form

Mail or email to ATG.Charities@hawaii.gov

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To close out your registration, submit the deactivation request form. If the deactivation request is submitted during the first half of an organization's fiscal year, there is no need to submit a report for that fiscal year. If the deactivation request is submitted during the second half of an organization's fiscal year, it must submit an annual report for the current fiscal year.