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.
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Tax990 published a guide covering how Arkansas nonprofits register with the state, obtain tax-exempt status, and meet annual report filing requirements.
Arkansas nonprofit professionals need clear guidance on state compliance obligations to maintain good standing and avoid penalties.
Since 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 of State's website.
Nonprofit professionals in Arkansas must ensure their organizations remain compliant with these ongoing registration and reporting obligations to maintain legal solicitation privileges in the state.
The Rural Health Information Hub has compiled funding and opportunities to address rural health issues in Arkansas.
Nonprofit professionals in AR can access targeted resources to support health programming in underserved rural communities.
Reach professionals in this market
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The streamlined Form 1023-EZ is available only to organizations meeting specific limits on projected revenue, assets, and activity types. Filing 1023-EZ when ineligible produces a determination that is technically valid but vulnerable to retroactive revocation if discovered. The full 1023 is harder to file but harder to challenge.
Loss of exemption is retroactive to the original determination, exposing the organization to back-tax liability. The eligibility checklist is the only protection.
The IRS-recommended COI policy requires (1) annual disclosure by all directors and key employees, (2) a process for review of any disclosed conflict, (3) recusal procedures, and (4) documentation in board minutes. Policies that have only the disclosure form without the review and recusal process do not satisfy the recommendation.
A weak COI policy is a Schedule L disclosure waiting to happen, and Schedule L disclosures correlate with future IRS examination selection.
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.
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.
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