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  • NJ A4294
  • Require Attorney General to ensure review of registration statements and financial reports of charitable organizations under certain circumstances.
Introduced
(10/27/2016)
In Committee
(10/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill supplements the "Charitable Registration and Investigation Act," P.L.1994, c.16 (C.45:17A-18 et seq.), which regulates the fundraising activities of charitable organizations operating in the State. If upon receipt of a registration statement and financial report filed by a charitable organization pursuant to that act, the Attorney General determines that the registration statement and financial report, and the registration statements and financial reports filed by the organization for the immediately preceding two years, indicate that the organization has: (1) no program expenses for three consecutive years; or (2) a ratio of management expenses to total expenses in excess of 90 percent for three consecutive years, then, the Attorney General shall ensure that the Charitable Registration and Investigation Section of the Division of Consumer Affairs completes a review of the annual registration statement and financial statement within 60 days of receipt. The bill provides that upon completion of the review, the Attorney General may, in the Attorney General's discretion, exercise any authority provided to the Attorney General pursuant to section 16 of P.L.1994, c.16 (C.45:17A-33), including the authority to revoke or suspend the charitable organization's registration, after notice and an opportunity for a hearing, upon a finding of any of the grounds for registration or suspension set forth in that section. The bill is in response to an audit of the Division of Consumer Affairs within the Department of Law and Public Safety by the Office of the State Auditor, for the period of July 1, 2013 to November 30, 2015. The audit made findings concerning certain practices by the Charitable Registration and Investigation Section of the Division of Consumer Affairs. Although the Charitable Registration and Investigation Section is charged with the administration and enforcement of the "Charitable Registration and Investigation Act," the audit found that the section is performing only limited data analysis or verification regarding the annual registrations and financial reports provided by charitable organizations operating in New Jersey. Further, the audit found that it is not standard procedure for the section to analyze a charity's financial data in its entirety for "red flags" that would justify an investigation of a charity. This bill seeks to address the audit's findings by imposing the expedited review requirements under the circumstances set forth above.
Regulated Professions
Introduced, Referred to Assembly Regulated Professions Committee  (on 10/27/2016)
 
 
Date Chamber Action Description
10/27/2016 A Introduced, Referred to Assembly Regulated Professions Committee
Date Motion Yea Nay Other
None specified