AB 60 Compliance Toolkit
AllianceForNevadaNonprofits.com/ab60/toolkit
Insert Your Name, Title
Organization
Agenda
• How many have read the AB 60 law?
• Why AB 60?
• What is AB 60?
– Quick Summary of AB 60 by Section
– Major Changes That Impact Us
• Financial Reporting with Annual List Filing
• Charitable Donation Solicitation Disclosures: Oral/Verbal & Written
• Sample Timeline to Educate Board/Staff/Volunteers
Regarding AB 60 Solicitation & Compliance
• AB 60 Solicitor Checklist
– Are We Compliant?
• Resources
• Questions and Answers (Q&A)
Why AB 60?
Speaker:
Nichole Lamboley, Chief Deputy
Nevada Secretary of State
(Recorded July 10, 2013)
What Is AB 60?
Let’s Look At The Law
• Section 3 (pages 2-4)
– New nonprofit corporations must indicate
intention to solicit tax-deductible charitable
contributions when filing articles of incorporation.
– As a nonprofit corporation in Nevada, we must file
a financial report with annual list of officers:
• 990-N (e-Postcard) ≤ $50,000 (Good faith estimate)
• 990-EZ < $200,000 revenue + < $500,000 assets
• 990 ≥ $200,000 revenue
– Terms defined like “Form 990” and “Solicit
charitable contributions”
Let’s Look At The Law
• Section 4 (page 4)
– Authorizes Secretary of State to post on website with
business searches: NVSilverFlume.gov or NVSOS.gov
• Section 5 (pages 4-5)
– Explains process for written notices to violators
– Imposes a civil penalty of not more than $1,000
– Explains “cease and desist” orders
• Sections 6.5-12 (pages 5-9)
– Authorizes Secretary of State’s office and Attorney
General’s office to ..
• Section 13 (page 9)
– AB 60 becomes effective January 1, 2014.
Nonprofit
Articles of
Incorporation
Form - Draft
Charitable
Solicitation
Registration
Statement - Draft
Nonprofit Annual
List of Officers
& Directors Draft
Regulations
Sec. 3.1. The form prescribed by the Secretary of State pursuant
to section 3 of Assembly Bill No. 60, chapter 192, Statutes of
Nevada 2013, at page 719 (NRS 82.392) must offer a
corporation the option of:
a) Providing the Internet address of a website which may be
accessed via the Nevada Business Search web page on the
Internet website of the Secretary of State. The Internet
address provided by the corporation must be:
1) The official website of the corporation; and
2) Kept active and maintained by the corporation.
b) Certifying that all funds received by the corporation will be
used in compliance with the Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act (USA PATRIOT ACT) of 2001, Public Law
107-56.
Regulations
Financial Report defined.
• For the purposes of providing financial information pursuant to NRS
Chapter 82…, the following information as reported to the Internal
Revenue Service on the corporations most recent Form 990 or 990EZ must
be provided on the form prescribed by the Secretary of State:
– Total revenue, as reported on line 12 of Form 990 or on line 9 of Form 990-EZ;
– Total expenses, as reported online 18 of Form 990 or online 17 of Form 990EZ;
– Revenue less expenses, as reported online 19 of Form 990, or Excess (or
deficit) for the year, as reported on line 18 of Form 990-EZ;
– Total assets, as reported online 20 of Form 990 or online 25 of Form 990-EZ;
– Total liabilities, as reported online 21 of Form 990 or online 26 of Form 990-EZ;
and Net assets orfund balances, as reported on line 22 of Form 990 or on line
27 of Form 990-EZ.
Financial Report using good faith estimates defined.
• If a corporation is not required to file a Form 990 or 990EZ, but filed a
990N or was formed in the past year and does not have any financial
information available, it shall select the box indicating it is providing a
good faith estimate based on the records of the corporation.
Regulations
Sec. 4. 2. A disclosure made pursuant to NRS 598.1305, as amended by section 12 of
Assembly Bill No. 60, chapter 192, Statutes of Nevada 2013, at page 723, must:
(a) For solicitations made electronically or in written form, be:
(1) Clear and conspicuous on any printed material, social media account or other
Internet website or electronic media which contains information about support for or
contributions or donations to the person or charitable organization and on any printed
material, social media account or other Internet website or electronic media whereby
a solicitation is made, including, without limitation, materials provided for making a
response to the solicitation and on a web page that authorizes or performs fulfillment
of a contribution or donation.
(2) If the solicitation consists of more than one piece or page, prominently displayed
on any material on which a solicitation occurs.
(3) Set apart from the other printed content in the communication.
(4) Of a type size that is sufficient to be clear and readable by the recipient of the
communication.
(5) Printed in black or blue on a white background or, if on a background of another
color or with graphics, there must be a reasonable degree of contrast of colors
between the print of the disclosure and the background so as to be clearly readable.
Regulations
(b) For solicitations made orally or verbally, be provided by the person making the
solicitation before the prospective donor makes a commitment to contribute.
(c) For solicitations made on the Internet and for web pages on an Internet website
that contain information about support for or contributions or donations to a person
or charitable organization, appear on each web page where the solicitation is made
and on the web page that authorizes or performs fulfillment of a contribution or
donation.a contribution or donation.
Sample Timeline
AB 60
Solicitor Checklist
1. What forms of oral/verbal disclosures does our business have?
2. How will we verify that everyone is compliant?
AB 60
Solicitor Checklist
1. What forms of written disclosures does our business have?
2. How will we verify that all written disclosures are complaint?
Are We
Compliant?
What’s
Missing?
AB 60
Solicitor Checklist
Are We Compliant?
What’s Missing?
Resources
• AllianceForNevadaNonprofits.com/ab60/toolkit
– Final AB 60 Text As Enrolled
– Regulations
• Working Draft
• Final Adoption of Regulations (when available)
– ANN Education Opportunities (QuickBooks, Excel, fundraising, etc.)
• 102-Minute Digital Video - Recorded July 10 Webinar
with Secretary of State's Nicole Lamboley & ANN's Phil
Johncock (.wmv format - uses Windows Media Player)
– PowerPoint Slides for July 10 Webinar
– AB 60 Special Report III (transcription of July 10 webinar in a searchable .pdf:
11,725 words, 31 pages)
– AB 60 Special Report II (to be issued after Final Adoption of Regulations)
– AB 60 Special Report I (to be issued in 2014)
• Sample Timeline to Educate Board/Staff/Volunteers
Regarding AB 60 Solicitation & Compliance
• AB 60 Solicitor Checklist (peer review)
Q&A