Monday, May 28, 2007

If your organization has offices in more than one state, then it has to register in more than one state.

QUESTION.
I am a volunteer paralegal with a non profit organization in Mass. We help inmates and their families. I was told I need to register here in NY since this the state I volunteer in. The organization is made up of only volunteers and we use our own funds to run it-do not recieve any funding. What do I have to do to register here in NY? Also is it true that the organization should have insurance? If not am I covered under the volunteer law? I was asked to be on the board of directors of the organization would I be liable for any type of claims against the organization if they don't have insurance?

ANSWER.
Sounds like you are a volunteer for a Massachusetts nonprofit that provides services in New York. If services are truly delivered in New York, then your nonprofit has to register as a nonprofit in New York, too. Since you are merely a volunteer for the organization, you shouldn't have to do anything. The people that manage the nonprofit have to do the paperwork and pay the appropriate fees. You see, a nonprofit is a separate legal entity from the the people who run it. State law is how a nonprofit is recognized from a legal standpoint. As long as a nonprofit does it business in the state where it is incorporated, then all is well. But if it goes outside of the its original jurisdiction, then it has to register itself as a foreign entity in the new state in which it provides services. In this case that means it has to register as a foreign nonprofit in NY. Yes, the organization should have some insurance if the services it provides could cause injury to someone. I hope my comments are helpful. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com

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