As a nonprofit in California, you understand that you need to comply with both state and federal mandates. As part of compliance efforts, you must file a Statement of Information and an RRF-1 form. Failure to complete and file these forms can result in fines and loss of your nonprofit status.
In this article, we’ll discuss Form RRF-1, the Registration Renewal Fee Report’s shorthand name. Like our article about IRS Form 990, we’ll also address some important considerations to consider as you file a Statement of Information.
What is Form RRF-1?
The Form RRF-1 is designed to assist the Attorney General’s Office in detecting charity fiscal fraud and mismanagement or criminal division of assets for charitable purposes. The form is intended to serve as a short-form overview of a charitable organization’s most current information and resolve reporting delays in matters related to charity fiscal accountability.
Who Must File RRF-1?
The Registration Renewal Fee Report must be completed by all nonprofit charitable organizations, unincorporated associations, or trustees possessing assets to be used for philanthropic purposes.
Entities that are not required to file the RRF-1 form are the following:
- Government agencies
- Religious corporations sole
- Cemetery corporations regulated under Chapter 12 of Division 3 of the Business & Professions Code
- Political committees, defined in Section 82013 of the California Government Code, are required to file statements described in Article 2 of Chapter 4 of Title 9 with the Secretary of State.
What is a Statement of Information?
Simply put, it’s a file that contains the most up-to-date information about your organization.
A Statement Of Information (Form SI-100) can be downloaded and mailed to the Secretary of State. However, we strongly recommend taking advantage of the state’s online filing system to have your information processed faster and ensuring you avoid late fees. You can find the Business Entities eForms page here.
The Statement of Information is due within 90 days after filing the initial Articles of Incorporation and biennially afterward during the applicable filing period. Your organization’s applicable filing period is the calendar month in which the INITIAL Articles of Incorporation were filed AND the five months before then.
If you do choose to mail in your form, it is sent directly to the Secretary of State. You can find the address for California’s Secretary of State here.
All charitable nonprofit corporations, unincorporated associations, and trustees holding assets for charitable purposes are required to register with the Attorney General are also required to annually file an Annual Registration Renewal Fee Report (or RRF-1.)
The following nonprofit organizations are exempt: religious institutions, educational institutions, government agencies, and other non-charitable organizations.)
The RRF-1 is another compliance document that must be filed once each calendar year. The RRF-1 Should be submitted no later than four months and fifteen days after the close of your organization’s accounting period.
Renewal fees range from $25- $300 and are based upon your organization’s total revenue (which you have reported on the applicable 990 Form) for the preceding fiscal year.
The purpose of these two forms is to make sure your nonprofit is complying with the rules set forth by government agencies.
While the forms are pretty straightforward, they require that all of your nonprofit’s information be current. Unfortunately, many nonprofits fail to realize these forms are necessary or fail to get them in on time.
The Registry of Charitable Trusts, a California Attorney General’sGeneral’s division, is the most commonly neglected agency in California. Nonprofits who do not follow through with filing their RRF-1s are not in compliance with California’sCalifornia’s state.
If you are unsure whether you are in good standing, you can check with Charitable Trusts’ Registry.
2020 Changes To Form RRF-1
On February 1, 2020, the California Attorney General made the following four changes to Form RRF-1, Annual Registration Renewal Fee Report:
- The addition of a question to assess compliance with California Government Code Section 12599.8.
- The removal of the question, “During this reporting period, did nonprogram expenditures exceed 50% of gross revenue?”.
- Part A now requires organizations to report aggregate noncash contributions recorded during the reporting period.
- An authorized agent must now sign form RRF-1, but electronic signatures are now acceptable.
2021 Changes To Filing Requirements
Effective February 1, 2021, California’s Attorney General announced that nonprofit organizations that file Form RRF-1, but do not file a Form 990 EZ or Form 990, must now submit a Form CT-TR-1 along with their RRF-1 form. Organizations that file Form 990 or Form 990 EZ are not required to submit Form CT-TR-1.
Do You Need An Accountant To Help You With Your Form RRF-1?
Hiring a CPA to help you maintain your tax-exempt status can help your organization save big by avoiding fees and keeping you from losing your nonprofit status.
A CPA will not only make sure your financial records are up-to-date and accurate, but they will make sure the correct files get to the right places at the right time. Professional accounting services will help stave off annoying audits and keep the government on your side, making all the difference in the world.
If you are scrambling to do the math in your head to figure out whether or not you should have already sent out your compliance filings, you may need assistance. A qualified CPA can get your documents in order and help you deal with possible delinquency.
Managing a successful nonprofit organization is challenging but rewarding work. MBS Accountancy is proud to support nonprofit organizations by providing nonprofit accounting services and helpful articles like maximizing nonprofit tax deductions, the best fundraising apps, and general nonprofit tax tips.