Tennessee Nonprofit Compliance

• Bona fide religious institutions
• An organization organized and operated exclusively for educational purposes and which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on, and which is accredited by a recognized accrediting agency. Included in such definition are organizations composed of parents of students and other persons connected with the institution, which are organized and operated for the purpose of conducting activities in support of the operations or extracurricular activities of such institutions. “Educational institution” also includes private foundations soliciting contributions exclusively for such organizations.
• Cooperative scholarship corporations regulated by title 49, chapter 4, part 1
• Volunteer fire departments, rescue squads or local civil defense organizations
• Community fairs, county fairs, district fairs and division fairs, as defined in § 43-21-104, that have been qualified by the commissioner of agriculture to receive state aid grants, pursuant to title 43, chapter 21, part 1
• Political parties, candidates for federal or state office, and political action committees required to file financial information with federal or state election commissions
• Hospitals and nursing homes that are subject to regulation by the Tennessee Department of Health
• Any corporation established by an act of congress of the United States that is required by federal law to submit annual reports of its activities to congress containing itemized accounts of all receipts and expenditures after being fully audited by the department of defense

Tenn. Code Ann. § 48-101-502

Charities with less than $50,000 in gross contributions during the preceding fiscal year & none of their fundraising activities were conducted by professional fundraisers, fundraising counsel, or commercial coventurers. 

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Charities must register within 30 days if they exceed $50,000 in contributions OR if any portion of their fundraising activities are conducted by professional solicitors, fundraising counsel, or commercial coventurers. 

Charities with less than $50,000 in gross contributions during the preceding fiscal year

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Annually by the end of the 6th month after the close of your fiscal year.

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$50

1 month

• The CFO and another officer must sign. Signatures need not be notarized.
• Remember to attach the Summary of Financial Activities form. If your nonprofit registers during its first year, it must file a quarterly financial report.
• Some Tennessee counties and municipalities may require charities that solicit in-person to register prior to fundraising.

Domestic Applicants:

• Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement.
• 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.
• 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 Tennessee, obtain a certificate of good standing from your home state to submit during the foreign qualification process. The certificate cannot be more than 2 months old when filing foreign qualification documents.

Domestic Applicants:

1. File entity formation documents with the Tennessee Secretary of State - Division of Business Services.
2. Submit an Application for Registration of a Charitable Organization, a quarterly or annual summary of financial activites form, and all required attachments to the Tennessee Secretary of State - Division of Charitable Solicitations and Gaming.

Foreign Applicants:

1. Determine whether or not your charity will need to foreign qualify based on your activity in Tennessee. If not required, skip to number 3.
2. File foreign qualification documents with the Tennessee Secretary of State - Division of Business Services.
3. Submit an Application for Registration of a Charitable Organization, a quarterly or annual summary of financial activites form, and all required attachments to the Tennessee Secretary of State - Division of Charitable Solicitations and Gaming.

• IRS form 990
• Audited financials (if applicable)
• Articles of incorporation
• Bylaws
• IRS determination letter
• List of officers and directors
• Professional fundraising contracts
• Proof of DBA/Fictitious Name filing in domicile state, if applicable

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Fees vary based on gross revenue:

• $0 - $50,000: $0
• $50,000.01 - $99,999.99: $120
• $100,000 - $249,999.99: $160
• $250,000 - $499,999.99: $200
• $500,000 and over: $240

• Annually by the end of the 6th month after the close of your fiscal year. So if your fiscal year ends December 31, then file by June 30.
• Renewals can be filed up to 90 days prior to the due date.

Due dates can be extended for 90 days beyond the original due date by submitting a request for extension through the online portal. A second extension of 60 days is available, and charities must submit a copy of IRS form 8868 when requesting a second extension.

• There is a late fee of $25 for each month that passes after the due date.
• Charities with less than $50,000 in gross revenue will not be assessed late fees. 

• The CFO and another officer must sign. Signatures need not be notarized.

• IRS form 990
• Audited financials (if applicable)
• List of officers and directors
• Professional fundraising contracts

Notice of Charitable Sales Promotion

Mail or Email

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Charities must submit a copy of the written contract between the organization and the commercial coventurer at least 5 days before the initiation of a charitable sales promotion

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Within 30 days after the end of each quarter of the organization's current fiscal year.

• During their first year of operation, newly registered charitable organizations must provide quarterly financial reports to the Secretary of State.
• Any charitable organization, other than a bona fide religious institution, that solicits and receives contributions exceeding $25,000 for a charitable purpose related to a disaster in this state shall file quarterly financial reports with the secretary of state, on forms prescribed by the secretary of state, detailing the money raised and expended by the organization as a result of the solicitation, until the funds are expended. The first quarterly report shall be filed on the last day of the third month following the commencement of solicitations.

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Due by the last day of the 24th month following the commencement of solicitations

Any charitable organization, other than a bona fide religious institution, that solicits and receives contributions exceeding $25,000 for a charitable purpose related to a disaster in this state and that does not expend all contributions received within 2 years of the commencement of solicitations shall file a report with both the secretary of state and the attorney general and reporter detailing both the timing and anticipated placement for the expenditures of the remaining funds. This report must be filed by the last day of the twenty-fourth month following the commencement of solicitations. A charitable organization may request an exemption from the requirements of this subsection (c) from the secretary of state and the attorney general and reporter; however, both the secretary of state and the attorney general and reporter must first approve the request.

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1-2 business days

Send the state a copy of the short IRS 990 once it is available.

• Collection Receptacle Annual Report
• Amended Collection Receptacle Annual Report 

A list of all the collection receptacles maintained by the organization to collect donated clothing, household items, or similar goods must be provided to the Secretary of State. Organizations must provide copies of the written, notarized permissions from property owners and/or all leaseholders of the said property where the receptacle is maintained. 

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• Annually by July 1
• A fully updated list must be provided within 14 days of the placement of a new bin or the change/removal of a bin's location

Disclosure Requirements

"1. Any charitable organization that places or maintains a collection receptacle in public view for the purpose of collecting donated clothing, household items, or similar goods shall clearly and conspicuously display on two (2) sides, including the front, of each collection receptacle a permanent sign or label with the charitable organization's name, address, phone number, electronic mail address, and a statement expressing the charitable purpose for which the charitable organization exists.

2. Any person who is not a charitable organization and who places or maintains a collection receptacle in public view for the purpose of collecting donated clothing, household items, or similar goods, for resale for the purpose of retaining the proceeds of the sale of the items, shall clearly and conspicuously display on two (2) sides, including the front, of each collection receptacle a permanent sign or label with the person's name, address, phone number, electronic mail address, and the following statement: THIS IS NOT A CHARITY. DONATIONS MADE HERE WILL BE SOLD BY A FOR-PROFIT BUSINESS AND ARE NOT TAX-DEDUCTIBLE.

3. (A) Any person who is not a charitable organization and who places or maintains a collection receptacle in public view for the purpose of collecting donated clothing, household items, or similar goods, for resale for the purpose of paying over all or a portion of the proceeds from the sales to a charitable organization, shall display on two (2) sides, including the front, of each collection receptacle a permanent sign or label with the following statement: DONATIONS MADE HERE WILL BE SOLD BY A FOR-PROFIT BUSINESS, AND A PORTION OF THE PROCEEDS WILL BE PAID TO [NAME OF CHARITABLE ORGANIZATION]. FURTHER INFORMATION ABOUT THESE PAYMENTS CAN BE OBTAINED FROM [NAME OF PERSON OPERATING COLLECTION RECEPTACLE] AT [PHONE NUMBER AND ELECTRONIC MAIL ADDRESS] AND FROM [NAME OF CHARITABLE ORGANIZATION] AT [PHONE NUMBER AND ELECTRONIC MAIL ADDRESS].

4. The sign or labels required by this subsection (l) shall be placed on two (2) sides of the collection receptacle, including the front, with the required information printed in letters that are at least two inches (2") in height, and in a color that contrasts with the color of the collection receptacle so that the sign or label is clearly visible."

• Notarized, written permissions with property owners and/or all leaseholders of the said property where the collection receptacle is located

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To close out your registration, submit a Notice of Intent to Cease Solicitations, the most recently filed IRS form 990, and a brief letter of explanation.

• Most recent IRS Form 990 or financial documentation