Bill
HD 1674
Overview: HD 1674, An Act to clarify the charitable purposes of certain organizations, proposed bill, introduced November 29, 2025.Purpose and Intent: This legislation aims to prov
Overview: HD 1674, An Act to clarify the charitable purposes of certain organizations, proposed bill, introduced November 29, 2025.
Purpose and Intent: This legislation aims to provide greater clarity and consistency in the classification of organizations as charitable entities eligible for tax-exempt status. The bill seeks to address ambiguities in existing laws and regulations that have led to inconsistent treatment of similar organizations.
Key Provisions:
- Establishes a clear definition of "charitable purpose" to include activities that provide a direct public benefit, such as the relief of poverty, advancement of education, or promotion of health
- Requires the state's Charitable Trusts Division to develop and maintain a public registry of organizations that have been granted charitable status
- Empowers the Charitable Trusts Division to periodically review the activities of registered charitable organizations to ensure continued compliance with the law
- Imposes stricter reporting requirements for charitable organizations, including the disclosure of executive compensation and detailed financial statements
Affected Parties and Impacts:
- Charitable organizations, including non-profits, foundations, and certain religious institutions, will be subject to the new registration and reporting requirements
- Donors to charitable organizations may have greater confidence in the legitimacy of their contributions
- The Charitable Trusts Division will need to allocate additional resources to manage the registry and review process
Procedural and Timeline Considerations:
The bill has been referred to the Joint Committee on Revenue for further consideration and potential amendments. If passed, the new requirements would take effect 12 months after the bill's enactment to allow charitable organizations time to comply.
Compiled from official sources — confirm details with the bill’s official record.
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