State of the Nonprofit Regulatory Environment in NEW HAMPSHIRE

1 Bifurcation of charitable regulatory body

Bifurcated Regulatory Structure

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

NH Code § 7:21

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: No - N.H. Rev. Stat. Ann., Title 1, §§ 7:21 to 7:32b

Registration Office

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

BIFURCD-REGIOF-NS

REGULATORY BODY: Not Specific

NOTES: New Hampshire Department of Justice Office of the Attorney General http://doj.nh.gov/charitable-trusts/charities.htm

2 Notice, Filing or Review of Transactions

Sale of Assets

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 292:29 ;; 292-29

REGULATORY BODY: Attorney General

STATUTE TEXT: 292:29 Disposition of Corporate Assets. n I. Any corporation whose charter is repealed, revoked and annulled pursuant to this subdivision shall, nevertheless, continue as a body corporate for the term of 3 years from the date such charter is repealed, revoked and annulled for the purpose of presenting and defending suits by or against it and of closing and settling its concerns and distributing its assets, including the disposition and transfer of all corporate assets and property, subject to paragraphs II and III. II. For the purpose of any suit or action by or against any such corporation, pending at the end of said term of 3 years, such corporation shall continue as a body corporate until 90 days after final judgment or decree in such suit or action. III. The superior court may at any time when it shall be made to appear, upon the petition of any interested party, that the protection of proprietary or other rights requires the doing of any act or thing by or in behalf of any such corporation, order the doing of such acts or things, and for this purpose may appoint and authorize an agent to act for and in the name of such corporation, and any action so ordered and done shall be effective corporate action. The probate court shall have concurrent jurisdiction with the superior court to grant relief in the case of petitions involving charitable corporations brought under this section. The attorney general shall be notified and given an opportunity to be heard in all cases involving charitable corporations. IV. All corporate assets and property are to be disposed of in accordance with the provisions for dissolution as set forth in the articles of agreement, the bylaws, and in accordance with RSA 292:8 and 292:9. Source. 1975, 95:1. 1991, 261:12, 13. 1992, 284:6, eff. Jan. 1, 1993.

NOTES: N.H. Rev. Stat. § 292:29

NH Code § 292:29 ;; 292-29

REGULATORY BODY: Other

NOTES: Jurisdiction of Court - N.H. Rev. Stat. § 292:29

Mergers

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-MERGER-AG

REGULATORY BODY: Attorney General

NOTES: No

NH Code § 292:7 ;; 292-7

REGULATORY BODY: Other

STATUTE TEXT: 292:7 Change of Name; Amending Articles. n Any corporation now or hereafter organized or registered in accordance with the provisions of this chapter, and any existing corporation which may have been so organized or registered, may change its name, increase or decrease its capital stock or membership certificates, merge with or acquire any other corporation formed pursuant to this chapter, or amend its articles of agreement, by a majority vote of such corporation’s board of directors or trustees, at a meeting duly called for that purpose, and by recording a certified copy of such vote in the office of the secretary of state and in the office of the clerk of the town or city in this state which is its principal place of business. In the case of a foreign nonprofit corporation registered in New Hampshire, a copy of the amendment or plan of merger, certified by the proper officer of the state of incorporation, shall be filed with the secretary of state, together with the fee provided in RSA 292:5. The surviving corporation in a merger shall continue to have all the authority and powers vested in the merging corporations, including any powers previously conferred upon them by the legislature. Source. 1895, 1:2. 1897, 49:1. PL 223:6. 1931, 69:1. RL 272:6. RSA 292:7. 1971, 73:2. 1983, 112:11. 1988, 93:5. 1991, 261:7, eff. Jan. 1, 1992.

NOTES: File with Sec. of State N.H. Rev. Stat. § 292:7

Certificate of Amendments

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-AMMEND-AG

REGULATORY BODY: Attorney General

NOTES: No

NH Code § 292:7 ;; 292-7

REGULATORY BODY: Other

NOTES: Sec. of State [N.H. Rev. Stat. § 292:7]

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

YES: A regulation is defined in the state

NH Code § 7:28-c

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Must also file (jointly with any paid solicitor) a financial report for each campaign: N.H. Rev. Stat. § 7:28-c

3 Notice or Action for Dissolutions

Voluntary Dissolutions

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 292:9 ;; 292-9

REGULATORY BODY: Attorney General

STATUTE TEXT: 292:9 Procedure. n I. Any such corporation, or 1/4 of the members thereof, may apply by petition to the superior court, or in the case of a charitable corporation to the superior court or the probate court, in the county in which the corporation is located, for a decree of dissolution, or for such other relief as may be just; and the court, after due notice to all parties interested and a hearing, may decree that the corporation be dissolved, subject to such limitations and conditions as justice may require. The attorney general shall be notified and given an opportunity to be heard in all cases involving charitable corporations. II. The court shall have the right to appoint a guardian ad litem in the event that any members or shareholders, or both, are unknown or have abandoned a stock interest or membership interest in the corporation. The guardian ad litem shall file a report with the court setting forth its findings with respect to: the attempt to notify the unknown shareholders or members or both; any response from the unknown shareholders or members or both; and the length of time since the date of last contact by the unknown shareholder or member with the corporation. III. The court shall have the discretion, after reviewing the report of the guardian ad litem, to conclude the extent of the rights and interests of the shareholders or members, or both, who are unknown or have abandoned their interests. IV. No member or shareholder shall be entitled to receive an amount from a dissolution of assets greater than the member’s or shareholder’s total contribution to capital or purchase price, or both, of membership certificates. Any and all funds which may be payable to members or shareholders, or both, who have been adjudicated to have abandoned their interests under this section shall revert to the corporation as capital assets. Source. 1887, 72:1. 1891, 46:1. PS 147:10. PL 223:9. RL 272:8. RSA 292:9. 1991, 261:9. 1992, 284:5, eff. Jan. 1, 1993.

NOTES: N.H. Rev. Stat. § 292:9

NH Code § 292:10 ;; 292-10

REGULATORY BODY: Other

STATUTE TEXT: 292:10 Filing Order. n The corporation shall cause an attested copy of the decree of the court to be filed in the office of the secretary of state forthwith after it is made; and when such copy has been so filed, the corporate existence of the corporation shall terminate in accordance with the terms of such decree. Source. 1887, 72:3. PS 147:11. PL 223:10. RL 272:9.

NOTES: Filed with Sec. of State N.H. Rev. Stat. § 292:10

Judicial Dissolutions

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 292:9 ;; 292-9

REGULATORY BODY: Attorney General

NOTES: N.H. Rev. Stat. § 292:9

NH Code § 292:10 ;; 292-10

REGULATORY BODY: Other

NOTES: File Decree with Sec. of State N.H. Rev. Stat. § 292:10

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

YES: A regulation is defined in the state

NH Code § 7:19-b

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: N.H. Rev. Stat. Ann. § 7:19-b

Requires Notice or Oversight

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 7:19-b

REGULATORY BODY: Attorney General

STATUTE TEXT:

NOTES: N.H. Rev. Stat. Ann. § 7:19-b

HOSPCON-OVERSI-OT

REGULATORY BODY: Other

NOTES: No

Requires Filing

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

HOSPCON-FILING-OT

REGULATORY BODY: Other

NOTES: No

5 Audits

Requires Audit

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 7:28(III-b)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: N.H. Rev. Stat. Ann. § 7:28(III-b)

Audit Threshold

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

AUDITFI-THRESH-NS

REGULATORY BODY: Not Specific

NOTES: $1 million; $500,000: latest financial statement - exemption available

6 Registration Law

Registration Law

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

NH Code § 7:19

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: N.H. Rev. Stat. § 7:19 et seq.

7 Exemptions from Registering for Specific Organization Types

Religious Organizations

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

NH Code § 7:19

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: N.H. Rev. Stat. § 7:19

Small organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-SMALLO-NS

REGULATORY BODY: Not Specific

NOTES: NO

Educational Institutions

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-EDUCAT-NS

REGULATORY BODY: Not Specific

NOTES: NO

Governmental Organizations

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

NH Code § 7:19

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: N.H. Rev. Stat. § 7:19

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

A regulation is NOT defined in the state

ORGTYPE-VETERA-NS

REGULATORY BODY: Not Specific

NOTES: NO

Foundations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-FNDYES-NS

REGULATORY BODY: Not Specific

NOTES: NO

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

A regulation is NOT defined in the state

ORGTYPE-NONSOL-NS

REGULATORY BODY: Not Specific

NOTES: NO

Fraternal/ Membership

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-MEMFRA-NS

REGULATORY BODY: Not Specific

NOTES: NO

Political Orgs

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-POLITI-NS

REGULATORY BODY: Not Specific

NOTES: NO

Other

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-OTHTYP-NS

REGULATORY BODY: Not Specific

8 Defined remedies

Dissolution

Regulatory Action: REMEDY

YES: A regulation is defined in the state

NH Code § 292:10 ;; 292-10

REGULATORY BODY: Not Specific

NOTES: Filed with Sec. of State N.H. Rev. Stat. § 292:10

Removal of Board Members

Regulatory Action: REMEDY

A regulation is NOT defined in the state

REMEDYT-BRDRMV-NS

REGULATORY BODY: Not Specific

NOTES: No

9 Oversight of professional fundraisers

Does the state require registration by commercial fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 7:28-c

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: N.H. Rev. Stat. Ann. § 7:28-c

Does the state require registration by fundraising counsel?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 7:28-b

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: N.H. Rev. Stat. Ann. § 7:28-b Any fundraising counsel must register, file contracts between counsel and the charitable organization, and is subject to final accounting if it has custody of solicited funds.

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

NH Code § 7:28-d

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Charitable organization must file a notice of any sales promotion with a commercial co-venturer with the AG and must keep contract available for production at request of the AG. N.H. Rev. Stat. Ann. § 7:28-d

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

YES: A regulation is defined in the state

NH Code § 7:28-c

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Paid solicitors must file a solicitation notice prior to each campaign: N.H. Rev. Stat. § 7:28-c

Does the state require specified disclosures to donors?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 7:28-c

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: N.H. Rev. Stat. Ann. § 7:28-c

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

NH Code § 7:28-b

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Counsel: N.H. Rev. Stat. Ann. § 7:28-b; Commercial fundraiser: N.H. Rev. Stat. Ann. § 7:28-c

NH Code § 7:28-c

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Counsel: N.H. Rev. Stat. Ann. § 7:28-b; Commercial fundraiser: N.H. Rev. Stat. Ann. § 7:28-c

Does the state require annual financial reporting by commercial fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 7:28-c

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: “Within 90 days after a solicitation campaign has been completed, and on the anniversary of the commencement of a solicitation campaign lasting more than one year, the paid solicitor and the charitable trust shall file with the attorney general a joint financial report for the campaign, including gross revenue and an itemization of all expenses incurred.” N.H. Rev. Stat. Ann. § 7:28-c Must keep financial records available for three years and must be presented at request of the Attorney General.

Does the state require bonding of professional fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

NH Code § 7:28-c

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: A paid solicitor shall, at the time of making application for registration and renewal of registration, file with and have approved by the attorney general a bond in sum of $20,000, with one or more responsible sureties. N.H. Rev. Stat. Ann. § 7:28-c