About Nonprofit & Charitable Organizations Law in New Hampshire, United States
Nonprofit and charitable organizations play a vital role in New Hampshire’s communities. They provide social services, foster arts and culture, support education, and address many public needs. In New Hampshire, nonprofit organizations are generally formed as corporations under state law and must comply with both state and federal regulations to maintain their tax-exempt status and operate legally. The New Hampshire Attorney General’s Charitable Trusts Unit monitors these organizations to ensure they serve the public interest and comply with state regulations.
Why You May Need a Lawyer
Legal advice can be essential at every stage of a nonprofit’s life cycle. Here are some common situations when you might need a lawyer familiar with nonprofit and charitable organizations in New Hampshire:
- Starting a new nonprofit, including drafting articles of incorporation and bylaws
- Applying for tax-exempt status with the Internal Revenue Service (IRS) and the New Hampshire Department of Revenue Administration
- Understanding ongoing compliance requirements and filing annual reports
- Assisting with financial reporting and audits
- Addressing board governance and fiduciary duties
- Managing mergers, dissolutions, or restructuring
- Navigating regulatory investigations or complaints
- Drafting or reviewing contracts and fundraising agreements
- Dealing with employment or volunteer-related legal issues
- Handling charitable solicitations and donor restrictions
Local Laws Overview
New Hampshire’s laws for nonprofits can differ in important ways from other states. Here are some key legal aspects to consider:
- Nonprofits are formed by filing articles of agreement with the New Hampshire Secretary of State
- Charitable organizations operating in New Hampshire must register with the Attorney General’s Charitable Trusts Unit
- Annual financial reports must be filed with the Charitable Trusts Unit for most organizations
- State law imposes fiduciary duties on board members, including the responsibilities of care, loyalty, and obedience
- New Hampshire law restricts how charitable assets can be used and requires court or Attorney General approval for certain transactions, like the sale of substantial assets or dissolution
- Nonprofits seeking local property tax exemptions must apply with their municipality and the state
- Certain fundraising activities are governed by additional regulations, especially raffles, bingo, and charitable gaming
- Public disclosures are required, including the availability of key organizational documents and financial statements on request
Frequently Asked Questions
What is the process for starting a nonprofit in New Hampshire?
Generally, you will need to draft articles of agreement, file them with the Secretary of State, obtain an Employer Identification Number from the IRS, draft bylaws, hold an organizational meeting, and apply for federal and state tax-exempt status.
Do all nonprofits have to register with the state?
Most charitable organizations, regardless of size, must register with the New Hampshire Attorney General’s Charitable Trusts Unit unless they qualify for a specific exemption.
Do we need to have a board of directors?
Yes, New Hampshire law requires that a nonprofit corporation have a board of directors to govern the organization.
Are New Hampshire nonprofits required to file annual reports?
Yes, charitable organizations must file annual financial reports with the Charitable Trusts Unit and also with the Secretary of State in order to maintain good standing.
Can a nonprofit make a profit?
A nonprofit can generate revenue in excess of expenses, but profits must be reinvested in the organization’s mission and not distributed to individuals.
What records do we need to keep?
Nonprofits must keep detailed records, including meeting minutes, financial statements, copies of filings, and records of donations and expenditures.
How do we lose tax-exempt status?
Organizations can lose tax-exempt status by failing to file required returns, engaging in prohibited activities, or violating state or federal laws.
Are donations to New Hampshire nonprofits tax-deductible?
Donations are typically tax-deductible if the organization has 501(c)(3) status from the IRS, but donors should confirm with the organization.
What is the role of the Attorney General’s Charitable Trusts Unit?
The Charitable Trusts Unit oversees and regulates charitable organizations, investigates complaints, and enforces state laws governing charitable assets and activities.
Do we need legal help for fundraising activities?
Some fundraising activities are heavily regulated, especially charitable gaming, raffles, and bingo, and legal advice can help ensure compliance with state and local regulations.
Additional Resources
If you need more information or direct assistance, the following resources can be helpful:
- New Hampshire Secretary of State, Corporation Division
- New Hampshire Attorney General’s Office, Charitable Trusts Unit
- Internal Revenue Service Exempt Organizations Division
- New Hampshire Center for Nonprofits
- NH Department of Revenue Administration
- Local legal aid organizations and bar association referral services
Next Steps
If you believe you need legal assistance with your nonprofit or charitable organization in New Hampshire, consider taking these steps:
- Gather all relevant documents, including articles of agreement, bylaws, filings, and correspondence
- Clearly identify your questions or concerns to discuss with a legal professional
- Contact a lawyer experienced in New Hampshire nonprofit law or seek a referral from the New Hampshire Bar Association
- Visit government offices or organizational resource centers for guidance and forms
- Stay proactive about ongoing compliance to avoid future legal issues
Seeking legal advice early can help your organization build a strong foundation, avoid costly mistakes, and fulfill its mission effectively within the bounds of New Hampshire law.
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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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