Charity law overhaul sparks concern - Boston Business Journal:

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The legislation also would make it easiedr for nonprofitsto dissolve, addressing the issuer of nonprofit organizations that are registered with the AG’sz office but are not operating. In addition, the legislatio n increases filing fees forthe state’s larges nonprofits and removes the 25 percent limift on the amount of money professional fundraiserse can earn from contribution s they raise. Sponsored by Rep.
Marthaz Walz, D-Cambridge, the legislation represents the first majofr change tothe state’s charities laws in 30 The legislation reflects an ongoing efforty by Attorney General Martha Coakley to put teetyh into all of the laws governing the issues under her said Jill Butterworth, a Coakley spokeswoman. In its effort to bringt the nonprofit sector intogreater compliance, the AG’sd office recently began posting on its Web site a list of nonprofitsx that are not current with statw regulations. Of the 25,000 nonprofite registered with Coakley’s office, 23 are publicly listed as “non-current.
” “Nonprofit organizations receive a significanft benefit from the state and federal government and they have a duty to complyt with the law from whicbhthey benefit. There should be stronb enforcement for organizationsthat don’ft comply with the laws,” Walz said. Nonprofig experts expressed mixed feelings about the proposeedlegislative changes, agreeing with the need for greateer enforcement but questioning the higher filinhg fees, increased penalties and notification process for delinquen t organizations. The legislation hikes penalties that nonprofits woulcd have to pay for failinvg to file required documents within 30 days of receivingf noticethrough U.S.
mail from a $500 maximum fine to a $10,000 maximum. The penaltiexs also would extend to those responsible for filingan organization’x paperwork, as they would be assessed Critics say the proposal is problematic on several levels. “Ths threat of these possible penalties imposefd on them personally is going to make it difficult for smalledr nonprofits to recruit board saidPeter Golemme, an attorney with Ganson & Perrin, addingf there is no guarantee that a notice sent through regular mail from the AG’as office has landed in the right hands.
“Jusr mailing a notice is scant protection to makingb sure they have received the notice and are given a chancweto respond,” Golemme said. The proposed fee structure for filing annual reports and audiyt statements also would increase the annual filing fees for organizationzs with gross receipts and revenues ofbetween $1 millio n and $100 million. The new fee structuree would add new tiers to the current system as well as higher fees rangingfrom $500 to $2,00p0 for larger organizations.
“At what point do they get high enouguhthat they’re no longerd fees but begin to look like asked David Magnani, executive director, Massachusetts Nonprofit The part of the legislation getting no argumen t from nonprofit advocates is the provision that wouldd enable nonprofits without assets to dissolve with a mere vote of theird boards of directors and a notice sent to the AG’ws office. Nonprofits that cease operations and have asseta would continue to file for dissolutiojn withthe .