Nonprofit Disclosure Requirements Updates

Nonprofit Disclosure Requirements UpdatesOne of our specialties at KatzAbosch is helping nonprofits fulfill their missions in the communities they serve. Crucial components to nonprofit law at the state and federal level are the procedures around disclosure.

According to Section 6-101(g) of the Maryland Solicitations Act, “a charitable organization is required to include on all written solicitations and receipts a disclosure statement.” Additionally, each disclosure statement is to include:

  • A statement that a copy of the current financial statement of the charitable organization is available on request.
  • The name of the charitable organization and the address and telephone number where requests for a copy of the financial statement should be directed.
  • A statement that, for the cost of copies and postage, documents and information submitted under the Act are available from the Secretary of State.

Recently, Maryland NonProfits released its annual “Disclose It!, A Charitable Nonprofit’s Guide to Public Disclosure Requirements,” which summarizes state and federal public disclosure requirements. The report provides the following helpful information:

  • Disclosure requirements in fundraising solicitations
  • Proper registration for soliciting contributions
  • Disclosure requirements regarding deductibility of donor contributions
  • Disclosure requirements in fundraising receipts and acknowledgments
  •  Disclosure requirements regarding financial documents that must be provided to a member of the public upon request
  • Detailed disclosure requirements for contests, sweepstakes and promotion

You can view Maryland Nonprofits’ report by clicking here.

If, however, you are thinking of creating a nonprofit, begin by visiting Maryland’s Office of the Secretary of State website. Their Checklist is especially helpful.  To learn more about compliance call Josh Sutherland 410-307-6536 jsutherland@katzabosch.com

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