WES MOORE, Governor Ch. 79
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Chapter 79
(House Bill 239)
AN ACT concerning
Charitable Organizations – Late Fees and Registration – Suspension and
Cancellation Requirements
FOR the purpose of authorizing the Secretary of State to suspend payment of certain late
fees assessed to certain charitable organizations under certain circumstances;
authorizing the Secretary of State to cancel a charitable organization’s registration
or reinstate a charitable organization’s canceled registration under certain
circumstances; and generally relating to the regulation of charitable organizations
by the Secretary of State.
BY repealing and reenacting, with amendments,
Article – Business Regulation
Section 6–407
Annotated Code of Maryland
(2024 Replacement Volume)
BY repealing and reenacting, without amendments,
Article – Business Regulation
Section 6–417
Annotated Code of Maryland
(2024 Replacement Volume)
BY adding to
Article – Business Regulation
Section 6–418
Annotated Code of Maryland
(2024 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Business Regulation
6–407.
(a) A charitable organization that collects less than $25,000 in charitable
contributions from the public in a year need not pay an annual fee, except that, if the
charitable organization uses a professional solicitor, it shall pay an annual fee of $50.
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(b) (1) Each charitable organization that submits a separate registration
statement and collects at least $25,000 in charitable contributions from the public in a year
shall pay an annual fee based on the charitable contributions collected.
(2) The annual fee shall be:
(i) $50, if charitable contributions from the public are at least
$25,000 but less than $50,001;
(ii) $75, if charitable contributions from the public are at least
$50,001 but less than $75,001;
(iii) $100, if charitable contributions from the public are at least
$75,001 but less than $100,001;
(iv) $200, if charitable contributions from the public are at least
$100,001 but less than $500,001; and
(v) $300, if charitable contributions from the public are at least
$500,001.
(c) (1) [An] A CHARITABLE organization failing to file an annual report
either by the end of the 6–month period after the end of the charitable organization’s fiscal
year or within any period of extension granted shall pay, in addition to the annual fee, $25
for each month or part thereof after the date on which the annual report was due to be filed
or after the period of extension granted for such filing.
(2) The late fee shall be assessed 60 days after:
(i) the end of the 6th month after the end of the fiscal year; or
(ii) the period of extension.
(3) Failure to remit an assessed late fee is a violation of this title.
(4) THE SECRETARY OF STATE MAY SUSPEND OR WAIVE LATE FEES
IN ACCORDANCE WITH :
(I) REGULATIONS ADOPTED UNDER SUBSECTION (F) OF THIS
SECTION; OR
(II) A SETTLEMENT AGREEME NT MADE UNDER § 6–205(B) AND
(C) OF THIS TITLE.
WES MOORE, Governor Ch. 79
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(d) The following revenues shall be distributed to the Charitable Enforcement
Fund under Subtitle 2A of this title, to be used only to support the actions of the Secretary
of State and the Attorney General in carrying out the duties of the Secretary of State and
the Attorney General under this title and Title 6.5 of this article:
(1) $100 of the annual fee paid by each charitable organization under
subsection (b)(2)(v) of this section; and
(2) the late fees collected under subsection (c) of this section.
(E) A LATE FEE ASSESSED UN DER THIS SECTION MAY NOT BE CONSIDERED
A DELINQUENT ACCOUNT OR DEBT REQUIRING RE FERRAL TO THE CENTRAL
COLLECTION UNIT FOR COLLECTION PURPOSES U NDER § 3–302 OF THE STATE
FINANCE AND PROCUREMENT ARTICLE.
(F) THE SECRETARY OF STATE MAY ADOPT REGUL ATIONS REGARDING THE
SUSPENSION OR WAIVER OF THE IMPOSITION OR COLLECTION OF LATE FEES FOR
CHARITABLE ORGANIZAT IONS THAT FAIL TO FI LE AN ANNUAL REPORT UND ER
SUBSECTION (C) OF THIS SECTION.
6–417.
A charitable organization that intends to end soliciting shall submit to the Secretary
of State:
(1) a statement of its intent; and
(2) a final annual report within 6 months after the end of its fiscal year.
6–418.
(A) THE SECRETARY OF STATE MAY CANCEL THE REGISTRATION OF A
CHARITABLE ORGANIZAT ION IF:
(1) THE ORGANIZATION FAI LED TO SUBMIT:
(I) A STATEMENT OF INTEN T AND FINAL ANNUAL R EPORT
UNDER § 6–417 OF THIS SUBTITLE WIT HIN 3 YEARS AFTER THE DATE THE
STATEMENT OF INTENT AND FINAL ANNUAL REP ORT WERE DUE ; OR
(II) ANY ANNUAL REPORT OR UPDATES REQUIRED UND ER §
6–408 OF THIS SUBTITLE FOR A 3–YEAR PERIOD; AND
(2) THE SECRETARY OF STATE SENDS A NOTICE OF CANCELLATION
TO THE LAST KNOWN ADDRESS A ND E–MAIL ADDRESS OF THE ORGANIZATION . Ch. 79 2025 LAWS OF MARYLAND
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(B) A CHARITABLE ORGANIZAT ION MAY REQUEST THAT THE SECRETARY OF
STATE REINSTATE A REG ISTRATION CANCELED U NDER SUBSECTION (A) OF THIS
SECTION IF THE ORGAN IZATION:
(1) SUBMITS TO THE SECRETARY O F STATE ANY OUTSTANDING OR
MISSING ANNUAL REPOR TS, SUPPORTING MATERIALS , AND ANNUAL FEES
REQUIRED UNDER THIS TITLE;
(2) (I) REMITS ALL UNPAID LA TE FEES; OR
(II) HAD LATE FEES SUSPEN DED OR WAIVED IN ACC ORDANCE
WITH § 6–407(C) OF THIS SUBTITLE;
(3) IS IN GOOD STANDING WITH THE STATE DEPARTMENT OF
ASSESSMENTS AND TAXATION, IF APPLICABLE;
(4) HAS A CURRENT TAX –EXEMPT STATUS UNDER § 501(C)(3) OF THE
INTERNAL REVENUE CODE, IF APPLICABLE; AND
(5) PROVIDES ANY OTHER I NFORMATION THAT THE SECRETARY OF
STATE REQUIRES .
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2025.
Approved by the Governor, April 8, 2025.