New Hampshire House Bill HB527

New Hampshire 2022 Regular Session

• Introduced: 1/12/21
• Refer: 1/12/21
• Report Pass: 11/3/21
• Engrossed: 1/18/22
• Refer: 1/18/22
• Report DNP: 4/20/22

Caption

Relative to the charitable gift annuities exemption.

Impact

If passed, HB 527 will significantly impact state legislation surrounding charitable organizations and their ability to offer gift annuities. By providing a clearer definition and requirements for qualification, the bill aims to protect donors and maintain higher standards among nonprofits. This could lead to a more robust charitable gifting environment, with potential increases in charitable contributions due to enhanced donor confidence. Conversely, organizations failing to meet these new standards may be unable to issue annuities, potentially hampering their fundraising efforts.

Summary

House Bill 527 seeks to amend the existing provisions related to charitable gift annuities in New Hampshire. The primary focus of the bill is to define criteria for what qualifies as a 'qualified charitable gift annuity,' thereby establishing a framework under which charitable organizations can offer these annuities. This new definition includes specific financial and operational qualifications that organizations must meet to issue such annuities, aimed at ensuring both donor protection and the financial stability of the issuing organizations.

Contention

While the bill appears to have a positive goal of protecting both donors and charitable organizations, it raises questions about the enforcement of the new criteria and the potential burden on smaller organizations that may find it challenging to comply with the financial thresholds or operational history specified. Critics may argue that the bill could inadvertently restrict the ability of some nonprofits to offer these financial products, thereby limiting their fundraising capabilities. Discussions among legislators and stakeholders are expected as the bill moves forward, with concerns about the balance between regulation and the operational viability of charitable entities.