TENNESSEE CHARITABLE SOLICITATIONS ACT
EXEMPT ORGANIZATIONS—SOLICITATIONS
by John C. Stophel

When forming a charitable organization, it is important that we the organizers know about the provisions of The Charitable Solicitations Act (the "Act") found at T.C.A. §48-101-501, et seq.

The Act applies only to organizations that solicit funds.  Private foundations that make no solicitation of funds are not required to file.  The fees for filing the registration statement each year, for the organizations which have to file, is determined by the organization's gross revenue.  The schedule is as follows:

GROSS REVENUE                                    FILING FEE
Less than $49,999.99                              $100.00
$50,000 - $249,999.99                              200.00
$250,000 - $499,999.99                            250.00
$500,000 and above                                 300.00

When the Act was first adopted, organizations exempted from registering with the state were required to apply annually for an exemption.  Now, an organization exempted from registering is not required to renew its request each year.  The exemption remains in effect until a change in circumstances requires the organization to register.  For example, an organization granted an exemption because it received less than $30,000 a year in gross public donations is not required to ask for an exemption each year.  However, should the organization's public donations exceed $30,000 in any year, the organization is required to register within 30 days of that event.

The exemptions from the Act are set out in TCA §48-101-502.  The Act does not apply to bona fide religious institutions, educational institutions, or certain cooperative scholarship corporations.  It also does not apply to a charitable organization which does not intend to solicit and receive and does not actually receive gross contributions from the public in excess of $30,000 during the fiscal year.  Also exempt are volunteer fire departments, rescue squads, and local civil defense organizations.  An interesting provision provides that any organization which is NOT required to file Form 990 or 990-PF can qualify as exempt as a religious organization, but if required to file an annual report with IRS it cannot qualify as exempt as a religious organization under the Act.

Any charitable organization receiving more than $300,000 in gross revenue in its most recent fiscal year is required to file an audited financial statement prepared by an independent Certified Public Accountant along with its registration application.  In addition, such organizations receiving more than $300,000 in gross revenue in their most recent fiscal year are required to file "any and all forms required to be filed by a charitable organization with the Internal Revenue Service."  (Normally, either Form 990 or Form 990-PF.)

TCA §48-101-502(d) provides that any charitable organization which claims to be exempt from the registration provisions and which intends to or does solicit charitable contributions shall submit to the Secretary of State a statement on a form prescribed by the Secretary of State.  The requirement for registration is limited to organizations which do or intend to solicit charitable contributions.

The Act is administered in Tennessee by the Division of Charitable Solicitations in the office of the Tennessee Secretary of State.  Advice, forms, and regulations may be obtained from:

  Director, Division of Charitable Solicitations
  Tennessee Department of State
  312 Eighth Avenue, North
  Eighth Floor, William R. Snodgrass Tower
  Nashville, TN 37243-0300

  (615) 741-2555 (phone)
  (615) 253-5173 (fax)
  www.state.tn.us/sos/charity.htm