There are two key phrases when filing an annual NJ charitable registration form for Section 501(c)(3) non-profit organizations: “gross revenue” and gross contributions”.

If a NJ charitable organization has over $500,000 of annual gross revenue, they must attach an audited financial statement prepared by a certified public accountant to the NJ Form CRI-300.  You cannot net fundraising expenses for events against gross revenue for this calculation.  However, if the organization’s gross revenue exceeds $500,000 for the year due to a one-time bequest or a fund raising capital campaign, the organization can apply to the New Jersey Charitable Registration Department of the Division of Consumer Affairs for a one-time exemption from the requirement for an audited financial statement.

The amount of the organization’s gross contributions determines the amount of the organization’s annual fee.  The fee can be anywhere from $30 to $250.  Gross contributions do not include all forms of gross revenue.  Membership dues, program service revenue, government grants, and investment income are not includable in gross contributions.  However, all gross receipts from fund-raising events (such as from gaming), the value of donated real estate and equipment, and donations from foundations, trusts, legacies and bequests are includable in gross contributions.

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