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Law Passed to Streamline State Reporting by Colorado Nonprofits

Jan 1, 2013


On April 26, 2012, Governor John Hickenlooper signed House Bill 12-1236 into law.  Effective January 2013, this new law eliminated the need for a nonprofit to file a first extension on its Colorado Charitable Solicitations Act (CCSA) report if it already filed for a first extension on IRS Form 990. Previously, many nonprofits had to apply for extensions on both their Form 990 and CCSA reports because necessary financial information was not ready.  

"HB 12-1236 is a win-win for nonprofits and the state of Colorado.  It will make it easier for nonprofits to meet their filing deadlines and will reduce the number of extension requests that the Secretary of State has to process," said Mark Turner, Manager of Public Policy at Colorado Nonprofit Association. 

The law makes additional changes to clarify specific CCSA reporting exemptions and disclosure requirements as follows:

  • Exempts persons who raise funds only to benefit a named individual from registration.
  • Clarifies that grant writers are not required to register separately as paid solicitors unless their compensation is based on a percentage of the funds they raise.
  • Requires that paid solicitors state their full name and if contributions are not tax deductible prior to securing a donation over the telephone.
  • Clarifies that only contributions of money must be deposited in a charity’s bank account within two business days by a paid solicitor. Other contributions are not subject to the two-day rule.

Prime sponsors of 1236 were Rep. Ken Summers (R- Lakewood) and Sen. Cheri Jahn (D- Wheat Ridge).