1.1
Newsroom.XXX-XXX-XXXXc***@sos.arkansas.gov
(see source).XXX-XXX-XXXXc***@sos.arkansas.gov
Why It Matters
Sources:Source
Welcome to your daily briefing on nonprofit developments in Arkansas. Today we're covering 6 key stories including updates on arkansas nonprofit headlines, background & context. Let's dive in.
1
Arkansas Nonprofit Headlines
3 stories
1.2
New Guide Covers Arkansas Nonprofit Registration, Tax-Exempt Status & Annual Reports.XXX-XXX-XXXXc***@sos.arkansas.gov
Tax990 has published a guide explaining how Arkansas nonprofits register with the State, obtain tax-exempt status, and file annual reports.XXX-XXX-XXXXc***@sos.arkansas.gov
Why It Matters
AR nonprofit professionals can use this resource to ensure compliance with state filing requirements and avoid penalties.XXX-XXX-XXXXc***@sos.arkansas.gov
Sources:Source
1.3
Arkansas Charities Must Register with Secretary of State Under 2018 Rule.XXX-XXX-XXXXc***@sos.arkansas.gov
As of January 1, 2018, all charities soliciting donations in Arkansas must register and file annual informational returns with the Arkansas Secretary of State, with forms and instructions available on the Secretary's website.XXX-XXX-XXXXc***@sos.arkansas.gov
Why It Matters
Nonprofit professionals in AR need to maintain compliance with state registration requirements to avoid legal issues and preserve donor confidence.XXX-XXX-XXXXc***@sos.arkansas.gov
Sources:Source
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2
Background & Context
3 stories
2.1
When fundraising activities cross into UBIT.XXX-XXX-XXXXc***@sos.arkansas.gov
Unrelated business income tax applies when an activity is regularly carried on, is a trade or business, and is not substantially related to the exempt purpose. Common surprises: corporate-sponsored events with naming rights that look like advertising, affinity credit-card royalties that include co-marketing services, and gift-shop sales of items unrelated to the mission.XXX-XXX-XXXXc***@sos.arkansas.gov
Why It Matters
UBIT exposure can cost both tax and exempt status if the unrelated business becomes substantial. The line between sponsorship (excluded) and advertising (included) is narrow and case-specific.XXX-XXX-XXXXc***@sos.arkansas.gov
2.2
The restricted-fund violation auditors find most often.XXX-XXX-XXXXc***@sos.arkansas.gov
Donor-restricted gifts must be tracked separately and used only for the restricted purpose; using them for general operations — even with intent to "pay back" later — is a fiduciary breach and an audit finding. The most-common fact pattern: cash-flow shortage in operations, restricted-grant balance available, transfer "borrowed" with no formal repayment plan.XXX-XXX-XXXXc***@sos.arkansas.gov
Why It Matters
State attorneys general have authority over restricted-gift compliance and have pursued individual board members and executives. Auditors are required to disclose restricted-fund violations in the management letter.XXX-XXX-XXXXc***@sos.arkansas.gov
2.3
Volunteer screening: the liability that comes from process, not policy.XXX-XXX-XXXXc***@sos.arkansas.gov
Negligent-screening claims arise not from failing to have a screening policy, but from failing to follow the policy that exists. A documented policy with inconsistent enforcement is harder to defend than no policy at all, because the deviation is evidence of negligence.XXX-XXX-XXXXc***@sos.arkansas.gov
Why It Matters
Insurance carriers tighten coverage on organizations with screening-process gaps. The cost of consistent enforcement is small; the cost of a single uninvestigated incident can close the organization.XXX-XXX-XXXXc***@sos.arkansas.gov
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DateMay 26, 2026
Stories6
Sections2
Read Time2 min
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