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LC 1806

Generally revise non profit laws

2025 Regular Session

LC 1806 would modernize nonprofit laws to tighten governance, fundraising, and reporting, enhancing accountability for charities; the draft died, delaying reform.

(LC) Draft Died in Process
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Bill Summary · LC 1806

Summary of LC 1806: Generally revise non profit laws

Overview

LC 1806 is a bill titled “Generally revise non profit laws,” introduced on November 22, 2024. The bill’s status shows drafts were prepared and, as of May 27, 2025, the draft died in process. The designation “LC” indicates the bill is within the legislative drafting process for the jurisdiction in which this numbering is used.

Purpose and Scope (inferred from the title)

Based on the title, the bill was intended to undertake a broad modernization or overhaul of existing nonprofit/charitable organization laws. The goal would typically be to clarify, update, or expand regulations governing nonprofit corporations, charitable solicitations, governance, reporting, and related activities. The exact scope and specific provisions are not provided in the available information.

Key Provisions (not publicly available in the provided text)

The exact text of LC 1806 is not included here, so specific provisions cannot be cited. In a general revision of nonprofit laws, bills of this nature commonly address:
- Formation and governance of nonprofit corporations (articles of incorporation, bylaws, board structure, fiduciary duties).
- Charitable solicitation and fundraising compliance (registration, reporting, advertising standards).
- Financial reporting and transparency (annual audits or financial statements, reporting thresholds).
- Governance and accountability (conflicts of interest, related-party transactions, internal controls).
- Dissolution and asset distribution (processes for winding down, charitable asset stewardship).
- Regulation of professional fundraisers and third-party solicitations.
- Compliance mechanisms, enforcement, and penalties.
- Definitions and clarifications of terms (e.g., nonprofit, charitable purpose, public benefit).

Note: The above categories reflect typical content in broad nonprofit-law revisions; the actual LC 1806 provisions may differ.

Affected Parties

  • Nonprofit corporations and associations operating under the jurisdiction’s nonprofit or charitable laws.
  • Officers, directors, and governance volunteers of nonprofits.
  • Fundraising professionals and organizations that solicit on behalf of nonprofits.
  • Donors and beneficiaries of nonprofit activities.
  • State or local regulators and charitable registrants responsible for oversight and reporting.

Procedural History and Status

  • Introduced: November 22, 2024 (Drafter Assigned)
  • 2024-11-22: Drafter Assigned
  • 2025-05-27: Draft Died in Process
  • Current status: The draft has not progressed beyond the drafting stage and is considered “Died in Process,” meaning it did not advance to committee or enactment.

Potential Impacts if Enacted (hypothetical)

  • Positive: Modernized governance standards, clearer reporting requirements, and stronger accountability for nonprofit operations; potential reduction of fraudulent activity and increased public trust.
  • Neutral/Negative: Possible increased regulatory compliance costs for nonprofits; transitional challenges for organizations adapting to new rules; potential impacts on small or volunteer-led nonprofits depending on the final scope.

Next Steps for Interested Readers

  • Obtain the full bill text and any fiscal or committee analyses from the legislature’s website or legislative counsel.
  • Review the bill’s sponsor statements, amendments, and committee testimony (if any) to understand intent and proposed rules.
  • Monitor for reintroduction or successor legislation, as similar topics may be revisited in future sessions.

If you share the bill text or committee reports for LC 1806, I can provide a precise, provision-by-provision summary.

Compiled from official sources — confirm details with the bill’s official record.

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