For the fourth consecutive year, the Tennessee General Assembly has approved our request to reduce the filing fee for all charitable organizations to $10. This fee reduction is effective for the upcoming fiscal year and affects all entities registered under the Charitable Solicitations Act.
Approximately four years ago, the Secretary of State’s office observed a nearly $8 million surplus in the accounts funded by charitable organizations. As a result, we sought legislative approval to temporarily reduce the fee. With this most recent approval, this reduction will have allowed our department to return these surplus funds to the nonprofit community so they can support your important work. We are grateful to the Tennessee General Assembly for their support and trust in enabling us to forego the nearly $2 million in fees.
In addition to the fee reduction, General Assembly members partnered with us to clarify the parameters of how a charitable organization is defined within state law to include any organization determined to be tax-exempt. The Charitable Solicitations Act also increases audit thresholds for organizations from $500,000 in gross revenue to $1 million, simplifying the audit process for these entities. Through the Charitable Solicitations Act, we are also providing greater transparency as to how funds were raised and spent by a charitable organization and improving the accuracy of all information by requiring at least two authorized officers to certify all information provided to our office is true and correct.
Under the Charitable Solicitations Act, applicants are now also required to submit statements confirming whether they have ever been the subject of an administrative order. This solution also provides us with the authority to enjoin any organization, professional fundraiser, or other person from continuing to operate while under investigation. Finally, we are strengthening reporting requirements on any individual or entity that places or maintains donation bins in Tennessee. Through the Charitable Solicitations Act, they must now maintain a comprehensive location list and file the list with our office annually.
The Tennessee General Assembly has been incredibly effective and committed in its partnership with us on these legislative victories, and as we continue working to better serve you! I hope you will join me in thanking them for their efforts in 2024.
For more information about the Secretary of State’s Division of Business and Charitable Organizations, visit sos.tn.gov/charities.
