NC Friends Requirements
NC Requirements to Operate a Friends Group
Legal Compliance Checklist for NC Nonprofit is a document from the NC Center for Nonprofits and is updated yearly in October. It is available for free only to members and FONCPL is a member. FONCPL members may request a copy from FONCPL President. We suggest that you request the update each year in November.
NC General Statutes (NCGS) change from time to time, so these are links to the NCGS active at the time this website was updated, but we suggest that you go to the NCGS page and type in the chapter you wish to access.
NC Nonprofit Corporations Act NCGS Chapter 55A—applies to Friends
State Taxation and Nonprofit Organizations (updated March 2022)
Payment of sales tax. Per NC Department of Revenue: If you only hold one book sale a year—you definitely don’t have to pay sales tax on goods sold, but if you do more than one sale or if you maintain a book shop or if you sell books and/or other items all year long—you do have to pay sales tax on all items sold. File form E-500 to pay the sales tax owed quarterly or monthly depending on the volume of sales.
FAQs—getting paid sales tax refunded to nonprofits Your nonprofit is eligible to recoup sales tax you paid for purchases (e.g., your Friends bought and paid for new conference room chairs for the library).
NC Sales and Use Tax Bulletins January 1, 2021 This is updated yearly.
NC Charitable Solicitation License to be renewed annually
NC Secretary of State website—various forms for nonprofits. Remember to keep the name and address of your registered agent current as this is the official mailing address for your Friends and you wouldn’t want to miss any official communication from the state. This information appears on your Articles of Incorporation or any form you may have used to make changes.
Lotteries, gaming, bingo and raffles—NCGS Chapter 14 Article 37 These rules apply to any nonprofit that offers a bingo or raffle as a fundraising event, one that offers a game or casino night as a fundraising event or any nonprofit that serves or sells alcohol at a fundraising event.
Also, if a nonprofit sells raffle tickets and one of the prizes is alcoholic, the alcohol sales laws come into effect. See 14B NC Administrative Code 15A.2206
The links were last checked in January 2023. Please email the FONCPL webmaster to report any broken links or any additional resources you recommend.