State of the Nonprofit Regulatory Environment in ALABAMA
1 Bifurcation of charitable regulatory body
Bifurcated Regulatory Structure
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
AL Code § 13A-9-70
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: No Alabama Code § 13A-9-70 et seq.
Registration Office
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
BIFURCD-REGIOF-NS
REGULATORY BODY: Not Specific
NOTES: Office of the Alabama Attorney General (Consumer Protection Division) http://www.ago.state.al.us/Page-Consumer-Protection-Consumer-Charities
2 Notice, Filing or Review of Transactions
Sale of Assets
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
REPORTS-ASSETS-AG
REGULATORY BODY: Attorney General
NOTES: No
REPORTS-ASSETS-OT
REGULATORY BODY: Other
NOTES: No
Mergers
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
REPORTS-MERGER-AG
REGULATORY BODY: Attorney General
NOTES: No
AL Code § 10A-3-5.04 ;; INDEX.HTML
REGULATORY BODY: Other
STATUTE TEXT: Section 10A-3-5.04Articles of merger or consolidation. (a) Upon the approval, articles of merger or articles of consolidation shall be executed for each nonprofit corporation by its president or a vice president, and by its secretary or an assistant secretary, and verified by one of the officers signing the articles, and shall set forth: (1) The plan of merger or the plan of consolidation. (2) If the members of any merging or consolidating nonprofit corporation are entitled to vote thereon, then as to each the nonprofit corporation (i) a statement setting forth the date of the meeting of members at which the plan was adopted, that a quorum was present at the meeting, and that the plan received at least two-thirds of the votes entitled to be cast by members present or represented by proxy at the meeting, or (ii) a statement that the amendment was adopted by a consent in writing signed by all members entitled to vote with respect thereto. (3) If any merging or consolidating nonprofit corporation has no members, or no members entitled to vote thereon, then as to each nonprofit corporation a statement of the fact, the date of the meeting of the board of directors at which the plan was adopted and a statement of the fact that the plan received the vote of a majority of the directors in office. (4) As to each nonprofit corporation incorporated under the law of Alabama, the county in which its certificate of formation or other comparable charter document is filed. (b) The articles of merger or articles of consolidation and the additional number of copies as may be required for purposes of Section 10A-1-4.02 shall be delivered to the Secretary of State for filing pursuant to Section 10A-1-4.02. (Acts 1984, No. 84-290, p. 502, ss44; ss10-3A-103; amended and renumbered by Act 2009-513, p. 967, ss187.)
NOTES: Filing with Sec. of State, Ala. Code § 10A-3-5.04
Certificate of Amendments
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
AL Code § 13A-9-71(e)
REGULATORY BODY: Attorney General
STATUTE TEXT:
NOTES: No, but if required to register (in order to solicit) must notify AG of all changes. Ala. Code § 13A-9-71(e)
AL Code § 10A-1-4.02
REGULATORY BODY: Other
STATUTE TEXT:
NOTES: If the name of the entity is altered, must file with the judge of probate and with the Sec. of State, Ala. Code § 10A-1-4.02; Restated Certificate of Formation filed with judge of probate, Ala. Code Sec. 10A-3-4.04
Does the state require annual financial reporting by charitable organizations in addition to filing a copy of the 990 with the regulator (if filing 990 is required)?
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
AL Code § 13A-9-71
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Financial Statement or 990: Alabama Code § 13A-9-71
3 Notice or Action for Dissolutions
Voluntary Dissolutions
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
DISSOLV-VOLUNT-AG
REGULATORY BODY: Attorney General
NOTES: No
AL Code § 10A-3-7.06 ;; INDEX.HTML
REGULATORY BODY: Other
STATUTE TEXT: Section 10A-3-7.06 Voluntary dissolution - Filing of articles of dissolution. (a) The articles of dissolution and two copies thereof shall be delivered to the judge of probate. If the judge of probate finds that the articles of dissolution conform to law, the judge of probate shall, when all fees prescribed in this title have been paid: (1) Endorse on the articles of dissolution and on each of the copies the word “filed,” and the hour, day, month, and year of the filing thereof. (2) File the articles of dissolution in the office of the judge of probate and certify the two copies thereof. (3) Issue a certificate of dissolution to which the judge of probate shall affix a certified copy of the articles of dissolution, and return the certificate of dissolution with a certified copy of the articles of dissolution affixed thereto to the representative of the dissolved nonprofit corporation. (4) Within 10 days after the issuance of the certificate of dissolution, transmit to the Secretary of State a certificate of dissolution with a certified copy of the articles of dissolution attached thereto, indicating thereon the place, date, and time of filing of the statement. (b) For failure of the judge of probate to comply with the requirements of subsection (a)(4), the judge of probate shall forfeit fifty dollars ($50) to the State of Alabama to be recovered in an action by the State of Alabama. (c) Upon the issuance of the certificate of dissolution, the existence of the nonprofit corporation shall cease, except for the purpose of suits, other proceedings, and appropriate corporate action by members, directors, and officers as provided in this chapter or otherwise in this title. (Acts 1984, No. 84-290, p. 502, ss53; ss10-3A-145; amended and renumbered by Act 2009-513, p. 967, ss192.)
NOTES: Probate court and Sec. of State, Ala. Code § 10A-3-7.06
Judicial Dissolutions
Regulatory Action: REQUIREMENT
YES: A regulation is defined in the state
AL Code § 10A-3-7.08 ;; INDEX.HTML
REGULATORY BODY: Attorney General
STATUTE TEXT: Section 10A-3-7.08Involuntary dissolution - Procedure; notification to Attorney General. The Secretary of State shall certify to the Attorney General, from time to time, the names of all nonprofit corporations which have given cause for dissolution as provided in this chapter, together with the facts pertinent thereto. Whenever the Secretary of State shall certify the name of a nonprofit corporation to the Attorney General as having given any cause for dissolution, the Secretary of State shall concurrently mail to the nonprofit corporation at its registered office a notice that the certification has been made. Upon the receipt of the certification, the Attorney General shall, no sooner than 30 days nor more than 90 days after the receipt, file an action in the name of the State of Alabama against the nonprofit corporation for its dissolution. If, before an action is filed, the nonprofit corporation shall appoint or maintain a registered agent as provided in this title, or shall file with the judge of probate the required statement of change of registered agent, the fact shall be forthwith certified by the Secretary of State to the Attorney General and he or she shall not file an action against the nonprofit corporation for the cause. If, after an action is filed, the nonprofit corporation shall appoint or maintain a registered agent as provided in this title, or shall file with the judge of probate the required statement of change of registered agent, and shall pay the costs of the action, the action for the cause shall abate. (Acts 1984, No. 84-290, p. 502, ss55; ss10-3A-147; amended and renumbered by Act 2009-513, p. 967, ss192.)
NOTES: Ala. Code § 10A-3-7.08
AL Code § 10A-3-7.16 ;; INDEX.HTML
REGULATORY BODY: Other
STATUTE TEXT: Section 10A-3-7.16 Filing of order of dissolution. In case the court shall enter an order dissolving a nonprofit corporation, it shall be the duty of the court to cause a certified copy of the order to be filed with the judge of probate in the county in which the certificate of formation was filed and with the Secretary of State. No fee shall be charged by the judge of probate or the Secretary of State for the filing thereof. (Acts 1984, No. 84-290, p. 502, ss63; ss10-3A-155; amended and renumbered by Act 2009-513, p. 967, ss192.)
NOTES: Probate court and Secretary of State § 10A-3-7.16
Administrative Dissolutions
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
DISSOLV-ADMINI-AG
REGULATORY BODY: Attorney General
DISSOLV-ADMINI-OT
REGULATORY BODY: Other
4 Notice, Oversight or Filing of Hospital Conversions
Has Statute
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
HOSPCON-STATUT-NS
REGULATORY BODY: Not Specific
NOTES: No
Requires Notice or Oversight
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
HOSPCON-OVERSI-AG
REGULATORY BODY: Attorney General
HOSPCON-OVERSI-OT
REGULATORY BODY: Other
Requires Filing
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
HOSPCON-FILING-OT
REGULATORY BODY: Other
5 Audits
Requires Audit
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
AUDITFI-AUDITS-NS
REGULATORY BODY: Not Specific
NOTES: No
Audit Threshold
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
AUDITFI-THRESH-NS
REGULATORY BODY: Not Specific
6 Registration Law
Registration Law
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
AL Code § 13A-9-70
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala.Code 1975 § 13A-9-70 - 13A-9-84
7 Exemptions from Registering for Specific Organization Types
Religious Organizations
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
AL Code § 13A-9-71(f)(2)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 13A-9-71(f)(2)
Small organizations
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
AL Code § 13A-9-71(f)(7)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 13A-9-71(f)(7) ($25k)
Educational Institutions
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
AL Code § 13A-9-71(f)(1)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 13A-9-71(f)(1)
Governmental Organizations
Regulatory Action: EXEMPTION
A regulation is NOT defined in the state
ORGTYPE-GOVMNT-NS
REGULATORY BODY: Not Specific
NOTES: NO
Hospitals
Regulatory Action: EXEMPTION
A regulation is NOT defined in the state
ORGTYPE-HOSPIT-NS
REGULATORY BODY: Not Specific
NOTES: NO
Veterans organizations
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
AL Code § 13A-9-71(f)(9)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 13A-9-71(f)(9)
Foundations
Regulatory Action: EXEMPTION
A regulation is NOT defined in the state
AL Code § 13A-9-71(f)(1)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: NO, but educational and health care foundations are exempt: Ala. Code § 13A-9-71(f)(1) amd 13A-9-71(f)(4)
AL Code § 13A-9-71(f)(4)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: NO, but educational and health care foundations are exempt: Ala. Code § 13A-9-71(f)(1) amd 13A-9-71(f)(4)
Foundations that don’t solicit contributions
Regulatory Action: EXEMPTION
A regulation is NOT defined in the state
ORGTYPE-FNDNOS-NS
REGULATORY BODY: Not Specific
NOTES: NO
Charitable Trusts
Regulatory Action: EXEMPTION
A regulation is NOT defined in the state
ORGTYPE-CTRUST-NS
REGULATORY BODY: Not Specific
NOTES: NO
Parent-Teacher Organizations
Regulatory Action: EXEMPTION
A regulation is NOT defined in the state
ORGTYPE-PTOEDU-NS
REGULATORY BODY: Not Specific
NOTES: NO
Reports to congress
Regulatory Action: EXEMPTION
A regulation is NOT defined in the state
ORGTYPE-CONGRE-NS
REGULATORY BODY: Not Specific
NOTES: NO
Non-soliciting
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
AL Code § 13A-9-71(a)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 13A-9-71(a), 13A-9-71(f)(7)
Fraternal/ Membership
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
AL Code § 13A-9-71(f)(4)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 13A-9-71(f)(4), 13A-9-71(f)(5)
Political Orgs
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
AL Code § 13A-9-71(f)(3)
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 13A-9-71(f)(3)
Other
Regulatory Action: EXEMPTION
YES: A regulation is defined in the state
ORGTYPE-OTHTYP-NS
REGULATORY BODY: Not Specific
NOTES: civic orgs (5), specific beneficiaries (6)
8 Defined remedies
Dissolution
Regulatory Action: REMEDY
YES: A regulation is defined in the state
AL Code § 10A-3-7.07 ;; INDEX.HTML
REGULATORY BODY: Not Specific
STATUTE TEXT: Section 10A-3-7.07Involuntary dissolution - Grounds. A nonprofit corporation may be dissolved involuntarily by an order of the circuit court of the county in which the registered office of the nonprofit corporation is situated in an action filed by the Attorney General when it is established that: (1) The nonprofit corporation procured its certificate of formation through fraud; (2) The nonprofit corporation has continued to exceed or abuse the authority conferred upon it by law; (3) The nonprofit corporation has failed for 90 days to appoint and maintain a registered agent in Alabama; or (4) The nonprofit corporation has failed for 90 days after change of its registered agent to file in the office of the judge of probate a statement of the change. (Acts 1984, No. 84-290, p. 502, ss54; ss10-3A-146; amended and renumbered by Act 2009-513, p. 967, ss192.)
NOTES: Ala. Code § 10A-3-7.07
Removal of Board Members
Regulatory Action: REMEDY
YES: A regulation is defined in the state
AL Code § 19-3B-706
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 19-3B-706; Ala. Code § 19-3B-110
AL Code § 19-3B-110
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Ala. Code § 19-3B-706; Ala. Code § 19-3B-110
9 Oversight of professional fundraisers
Does the state require registration by commercial fundraisers?
Regulatory Action: REQUIREMENT
YES: A regulation is defined in the state
AL Code § 13A-9-71
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: “No person shall act as a professional fund raiser or commercial co-venturer either before he or she registers with the Attorney General, or after the expiration or cancellation of his or her registration and prior to renewal thereof. Applications for registration and renewal shall be in writing, under oath, in the form prescribed by the Attorney General, and shall be accompanied by an annual fee in the amount of one hundred dollars ($100).” Alabama Code § 13A-9-71 (h)
Does the state require registration by fundraising counsel?
Regulatory Action: REQUIREMENT
YES: A regulation is defined in the state
AL Code § 13A-9-71
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: “No person shall act as a professional solicitor in the employ of a professional fund raiser who is required to register pursuant to this section before he or she has registered with the Attorney General or after the expiration or cancellation of the registration or any renewal thereof. Application for registration shall be in writing, under oath, in the form prescribed by the Attorney General and shall be accompanied by a fee in the amount of twenty-five dollars ($25). Registration when effected shall be for a period of one year, or a part thereof, expiring with the 30th day of September and may be renewed upon written application, under oath, in the form prescribed by the Attorney General and the payment of the fee prescribed herein for additional one-year periods. Applications for registration, when filed with the Attorney General, shall become public records in the Office of the Attorney General.” Alabama Code § 13A-9-71 (j)
Does the state oversee commercial-coventuring (e.g. by requiring that the co-venture be registered or by requiring that the charitable organization files the co-venture contract)?
Regulatory Action: REQUIREMENT
YES: A regulation is defined in the state
AL Code § 13A-9-71
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: “No person shall act as a professional fund raiser or commercial co-venturer either before he or she registers with the Attorney General, or after the expiration or cancellation of his or her registration and prior to renewal thereof. Applications for registration and renewal shall be in writing, under oath, in the form prescribed by the Attorney General, and shall be accompanied by an annual fee in the amount of one hundred dollars ($100).” Alabama Code § 13A-9-71 (h)
Does the state require the fundraisers to provide notice to the regulator before any solicitation campaign (in addition to annual registration and/or filing the contract)?
Regulatory Action: REQUIREMENT
A regulation is NOT defined in the state
FNDRAZE-NOTICE-NS
REGULATORY BODY: Not Specific
Does the state require specified disclosures to donors?
Regulatory Action: REQUIREMENT
YES: A regulation is defined in the state
AL Code § 13A-9-71
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: “Every individual in the process of soliciting funds shall identify himself or herself. If the individual is being paid for soliciting, he or she shall so inform the solicitee of his or her being so paid. This information shall be disclosed to the solicitee in a clear manner before attempting any solicitations.” § 13A-9-71 (p)
Does the state require a copy of any contract between a charitable organization and a commercial fundraiser or fundraising counsel be filed with the regulator?
Regulatory Action: REQUIREMENT
YES: A regulation is defined in the state
AL Code § 13A-9-71
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: “All contracts entered into between professional fund raisers or commercial co-venturers and charitable organizations shall be in writing. A true and correct copy of each contract shall be filed by the professional fund raiser or commercial co-venturer with the Attorney General within 10 days after it is executed.” Alabama Code § 13A-9-71 (i)
Does the state require annual financial reporting by commercial fundraisers?
Regulatory Action: REQUIREMENT
YES: A regulation is defined in the state
AL Code § 13A-9-71
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: Anyone required to register must submit financial statement, and all contracts between fundraisers and organizations must be filed with the Attorney General: Alabama Code § 13A-9-71
Does the state require bonding of professional fundraisers?
Regulatory Action: REQUIREMENT
YES: A regulation is defined in the state
AL Code § 13A-9-71
REGULATORY BODY: Not Specific
STATUTE TEXT:
NOTES: At the time of application for registration the professional fundraiser or commercial fundraiser shall file with, and have approved by, the Attorney General a bond in the amount of ten thousand dollars ($10,000.00) with one or more sureties. AL ST § 13A-9-71 (h) (1)