Changes to Utah’s Charitable Solicitation Registration Requirements

In a significant shift in regulation, the state of Utah has announced that, effective May 1, 2024, charitable organizations will no longer need to submit an annual registration to the Utah Division of Consumer Protection. This change, ushered in by the passage of H.B. 43, Charitable Solicitations Act Amendments, marks a departure from the longstanding requirement that has governed charitable activities within the state of Utah.

Immediate Impact: No More Charitable Organization Registrations

Starting March 29, 2024, the Utah Division of Consumer Protection will cease accepting charitable organization registrations. This development means that, for many charities operating within Utah or soliciting donations from Utah residents, the administrative burden and associated costs of compliance will be significantly reduced.

Continued Requirements for Some Charities

Despite the elimination of the charitable registration requirement, certain obligations remain for some charitable organizations within the state of UT. Specifically, uploading an annual Form 990 may still be required, yet the details around which charities and how often this will be enforced is still being determined. 

It’s suspected charities with corporate registration requirements may end up being required to upload their most recent Form 990, along with an Application for Authority to Conduct Affairs for a Foreign Corporation, as part of the corporation’s filing process with the State of Utah’s Department of Commerce and Division of Corporations & Commercial Code.

Looking Ahead: Anticipated Rulemaking

The Utah Division of Consumer Protection has indicated that new Administrative Rules will be developed to reflect these changes. These rules are expected to clarify which charities will be subject to the Form 990 filing requirement and outline the process for compliance. As these details are finalized, charities and their advisors should stay informed about the evolving regulatory landscape in Utah.

Implications for Charitable Organizations

This regulatory change represents a significant shift for charities operating in Utah. By removing the registration requirement, Utah is streamlining the administrative process for charities, potentially making it easier for new and existing organizations to focus on their core mission without the added complexity of compliance with state registration requirements. However, the requirement to file Form 990, in yet-to-be-determined scenarios, underscores the importance of maintaining financial transparency for Utah-based charities. 

Importantly, charities also benefit financially as they are no longer subject to the state’s $75 annual registration fee, potential $25 monthly late fees, or the costs associated with maintaining a resident registered agent, making operations more affordable and directing more funds towards their impactful work.

Actions for Charitable Organizations

• Charities should review their current compliance status with the Utah Division of Corporations and Commercial Code to ensure that all necessary documents, including the most recent Form 990, are properly filed.
• Organizations should monitor the Utah Division of Consumer Protection’s website for updates on the new Administrative Rules and any additional guidance provided.
• Charitable organizations operating in or soliciting donations from Utah should consult with legal or compliance experts to understand the full impact of these changes on their operations.

The repeal of Utah’s charitable organization registration requirement represents a pivotal moment for the non-profit sector in the state. As the regulatory landscape evolves, charities operating in Utah should take proactive steps to adapt to these changes, ensuring that they remain compliant while seizing the opportunities presented by this new regulatory environment.

Affinity Fundraising Registration

For the latest information and guidance on navigating state charitable solicitation registration changes, visit Affinity Fundraising Registration for comprehensive support and expert advice on charity registration and compliance across the United States.

Affinity offers multiple levels of registration compliance services with a cloud-based platform, to either facilitate the self-registration process, or take the majority of the burden of filing, renewing, annual reporting, and more, off of your plate with a full-support service.

For more information about Affinity Fundraising Registration, or to request an estimate for registration services, please complete this online form.