Under the previous law, charitable organizations with revenue, gains, and other support of $1,000,000 or more were required to file with their annual reports and Forms 990 audited financial statements prepared in accordance with GAAP (Generally Accepted Accounting Principles). On February 24, 2022, during the 2022 session, the New Hampshire Legislature passed Senate Bill 375, which enacted a law that increased the $1,000,000 threshold to $2,000,000. The purpose of this act “is to minimize the burdens on the charitable sector and create a grant-making environment centered on effectiveness and impact.” The bill was signed into law on June 7, 2022.
New Hampshire Fostering Nonprofits:
In 2019, New Hampshire was home to 6,547 charitable 501(c)(3) organizations. Out of the 6,547:
- 437 had budgets over $1 million
- 1,346 with budgets between $50,000 and $1 million
- 4,764 with budgets less than $50,000
These numbers show that New Hampshire has always been home to a diverse market of small and large organizations — a diverse market that would drastically increase with both public and private support during 2020 and 2021. The increased support from New Hampshire was stimulated by the state being awarded an estimated $46 billion in the past three years, doubling the awarded amount from 2017-2019.
Rapid Growth and Support of Nonprofits:
During COVID-19 the country saw a large increase in philanthropy, with “corporate giving in 2021 increased to $21.08 billion-a 23.8% increase from 2020.” Charitable organizations in New Hampshire saw some of the most drastic changes in 2020 and 2021. A survey with a sample size of 24,598 Nonprofits showed that from March 2020 to Spring 2021, 57% of the Nonprofits decreased overall expenses.
Impact In New Hampshire:
The improvements in nonprofits can be seen in New Hampshire, with the number of charitable 501(c)(3) organizations almost doubling since 2019 to an estimated 11,490 in 2021. This rapid growth during the pandemic brought attention to increasing the filing threshold. As many nonprofits know, the less state-mandated paperwork, the better. Hopefully, increasing the filing threshold will free up time and money for the organizations and hopefully allow more organizations to be created.
Sources / Links:
Senate Bill: New_Hampshire-2022-SB375-Amended.html
Corporate Giving Stats: https://www.nptrust.org/philanthropic-resources/charitable-giving-statistics/#:~:text=General%20Philanthropy,a%204%25%20increase%20from%202020.&text=Corporate%20giving%20in%202021%20increased,a%2023.8%25%20increase%20from%202020.
Facts About Nonprofit Organizations 2022: 25 Incredible Nonprofit Statistics : How Many Nonprofits Are In The US? – Zippia
Application for PPP and Expense Shifting: https://www.urban.org/sites/default/files/publication/104889/nonprofit-trends-and-impacts-2021_2.pdf
2021 Number of Nonprofits: https://www.doj.nh.gov/charitable-trusts/documents/registered-charities.pdf
NH Spending: New Hampshire | Spending Profile | USAspending