Charity law overhaul sparks concern - Boston Business Journal:

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The legislation also would make it easier for nonprofitzto dissolve, addressing the issue of nonprofit organizations that are registeres with the AG’s office but are not operating. In addition, the legislation increases filing fees forthe state’s largest nonprofits and removew the 25 percent limit on the amount of moneuy professional fundraisers can earn from contributionsx they raise. Sponsored by Rep. Martha Walz, the legislation represents the first majord change tothe state’s charities laws in 30 years.
The legislation reflectds an ongoing effort by Attorney General Martha Coakley to put teeth into all of the laws governing the issues underher jurisdiction, said Jill a Coakley spokeswoman. In its effort to bring the nonprofity sector intogreater compliance, the AG’s office recently began postingg on its Web site a list of nonprofit that are not current with statee regulations. Of the 25,000 nonprofits registered with Coakley’s office, 23 are publiclu listed as “non-current.” “Nonprofit organizations receive a significanty benefit from the state and federal governmenf and they have a duty to complg with the law from whichthey benefit.
There should be strongb enforcement for organizationsthat don’rt comply with the laws,” Walz said. Nonprofigt experts expressed mixed feelingsx about the proposedlegislative changes, agreeiny with the need for greater enforcement but questioning the highed filing fees, increased penalties and notification process for delinquent organizations. The legislation hikes penaltiees that nonprofits would have to pay for failinfg to file required documents within 30 days of receivinbg noticethrough U.S. mail — from a $500 maximum fine to a $10,00 0 maximum.
The penalties also would extensd to those responsible for filinhgan organization’s paperwork, as they would be assessed separately. Critics say the proposal is problematicv onseveral levels. “The threat of these possible penalties imposed on them personally is going to make it difficulft for smaller nonprofits to recruitboards members,” said Peter Golemme, an attorney with Taylor, Gansoj & Perrin, adding there is no guarantee that a notic sent through regular mail from the AG’s officew has landed in the right hands. “Just mailing a noticd is scant protection to making sure they have receives the notice and are give a chanceto respond,” Golemme said.
The proposed fee structurs for filing annual reports and audig statements also would increas the annual filing fees for organizations with gross receipt s and revenues ofbetween $1 million and $100 million. The new fee structurw would add new tiers to the currenr system as well as higher fees rangingbfrom $500 to $2,000 for larger organizations. “Agt what point do they get high enougbthat they’re no longer fees but begin to look like asked David Magnani, executive director, Massachusetts Nonprofif Network.
The part of the legislation getting no argumenrt from nonprofit advocates is the provision that wouldx enable nonprofits without assets to dissolve with a mere vote of theire boards of directors and a noticed sent tothe AG’s office. Nonprofitsw that cease operations and have assets would continue to file for dissolutiojn withthe .