Skip to content
National Association of Attorneys General
  • Issues
    • Issues
      • Anticorruption
      • Antitrust
      • Bankruptcy
      • Charities
      • Civil Law
    • Issues
      • Consumer Protection
      • Criminal Law
      • Cyber and Technology
      • Disaster Preparedness & Response
      • Elder Justice
    • Issues
      • Ethics
      • Human Trafficking
      • Medicaid Fraud
      • Opioids
      • Powers & Duties
    • Issues
      • Public Health
      • The U.S. Supreme Court
      • Tobacco
      • Veterans & Military
  • Our Work
    • Training & Research
    • Centers
      • NAAG Center on Cyber and Technology
      • NAAG Center for Excellence in Governance
      • NAAG Center for Supreme Court Advocacy
      • NAAG Center for Tobacco & Public Health
      • NAGTRI Center for Consumer Protection
      • NAGTRI Center for Ethics & Public Integrity
      • NAGTRI Center for International Partnerships & Strategic Collaboration
      • NAGTRI Center for Leadership Development
      • NAGTRI Center for Legal Advocacy & Faculty Development
    • Committees
    • Initiatives
      • Presidential Initiative
      • Strategic Partnerships
      • ConsumerResources.org
      • International Fellows
      • COVID-19
    • Bankruptcy
    • Policy & Advocacy
  • Events & Training
    • Event Calendar
    • Attorney General Symposium
    • Presidential Summit
    • Capital Forum
    • Region Meetings
    • NAGTRI Trainings
    • Online Learning
    • NAGTRI Faculty
    • Video Library
  • News & Resources
    • Attorney General Journal
    • Reports & Publications
    • Newsroom
    • NAAG Policy Letters
    • Podcasts
    • Online Learning
    • Research & Data
    • Member Directory
  • Attorneys General
    • What Attorneys General Do
    • Who is my Attorney General?
    • Research & Data
    • Awards & Recognition
    • Careers in Attorney General Offices
  • About NAAG
    • NAAG Staff
    • NAGTRI
    • NAAG Leadership
    • NAAG Member Services
    • NAAG Regions
    • NAAG FAQs
    • SAGE
    • NAMFCU
    • Newsroom
    • Careers at NAAG
  • Find my AG
  • NAGTRI
  • Contact Us
National Association of Attorneys General
  • Find My AG
  • NAGTRI
  • Member Benefits
  • Consumer Complaints
  • Contact Us
Log In
  • Issues
    • Issues
      • Anticorruption
      • Antitrust
      • Bankruptcy
      • Charities
      • Civil Law
    • Issues
      • Consumer Protection
      • Criminal Law
      • Cyber and Technology
      • Disaster Preparedness & Response
      • Elder Justice
    • Issues
      • Ethics
      • Human Trafficking
      • Medicaid Fraud
      • Opioids
      • Powers & Duties
    • Issues
      • Public Health
      • The U.S. Supreme Court
      • Tobacco
      • Veterans & Military
  • Our Work
    • Training & Research
    • Centers
      • NAAG Center on Cyber and Technology
      • NAAG Center for Excellence in Governance
      • NAAG Center for Supreme Court Advocacy
      • NAAG Center for Tobacco & Public Health
      • NAGTRI Center for Consumer Protection
      • NAGTRI Center for Ethics & Public Integrity
      • NAGTRI Center for International Partnerships & Strategic Collaboration
      • NAGTRI Center for Leadership Development
      • NAGTRI Center for Legal Advocacy & Faculty Development
    • Committees
    • Initiatives
      • Presidential Initiative
      • Strategic Partnerships
      • ConsumerResources.org
      • International Fellows
      • COVID-19
    • Bankruptcy
    • Policy & Advocacy
  • Events & Training
    • Event Calendar
    • Attorney General Symposium
    • Presidential Summit
    • Capital Forum
    • Region Meetings
    • NAGTRI Trainings
    • Online Learning
    • NAGTRI Faculty
    • Video Library
  • News & Resources
    • Attorney General Journal
    • Reports & Publications
    • Newsroom
    • NAAG Policy Letters
    • Podcasts
    • Online Learning
    • Research & Data
    • Member Directory
  • Attorneys General
    • What Attorneys General Do
    • Who is my Attorney General?
    • Research & Data
    • Awards & Recognition
    • Careers in Attorney General Offices
  • About NAAG
    • NAAG Staff
    • NAGTRI
    • NAAG Leadership
    • NAAG Member Services
    • NAAG Regions
    • NAAG FAQs
    • SAGE
    • NAMFCU
    • Newsroom
    • Careers at NAAG
  • Find my AG
  • NAGTRI
  • Contact Us

Charities Regulation 101

Home / Issues / Charities / Charities Regulation 101

An attorney general’s legal authority in charities regulation is exercised primarily in five areas of law:  

  • Nonprofit corporations  
  • Charitable trusts 
  • Charitable solicitations 
  • Registration 
  • Health care conversions 

Nonprofit Corporations

In general, nonprofit corporations need to use revenues and assets to further the organization’s charitable purposes, and attorneys general are the primary protectors and regulators of nonprofits in their states. Attorneys general are responsible for ensuring that charitable corporations comply with legal requirements, that their assets are properly managed and spent, and that directors and officers fulfill their fiduciary obligations.  

Although individual powers and duties vary by state and territory, most attorneys general have the authority to pursue relief against directors who violate their fiduciary duties and to dissolve the nonprofit organization, among other things. In some cases, attorneys general work with organizations to institute new processes to address previous problems. They may also enter into a settlement that requires changes from the organization, periodic reporting, or compliance monitoring. 

Charitable Trusts

State statutory and common law governs charitable trusts.  Pursuant to those laws, attorneys general serve as protectors of charitable trusts and charitable assets whenever they are held in trust, including charitable interests in wills and in endowment funds.  

Charitable Solicitations

Charities need resources to operate and many solicit donations to make serving their charitable purposes possible. Unfortunately, some bad actors use this as an opportunity to perpetrate fraud on the donating pubic. To combat this type of activity, most states enable attorney general oversight and action by providing broad regulatory and enforcement authority over charitable solicitation.  This authority ranges from civil enforcement powers to criminal actions and provides attorneys general the power to fight persistent abuses by individuals and organizations that solicit charitable donations. 

Charity Registration

In many states, charities, charitable trusts, and fundraising professionals are required to register with state government and provide financial reporting. Some states also require registration for all entities that hold charitable assets or conduct business in their state. In most states, the attorney general is responsible for enforcing laws governing registration. Registration and financial filings can reveal violations of law such as excess compensation, failure to use assets for charitable purposes, improper self-dealing, mismanagement of charitable assets, and outright fraud, helping attorneys general to better serve their role in protecting charitable assets.  

Health Care Conversions

A health care “for-profit conversion” is the sale of all or a substantial part of the assets of a charitable entity, typically a hospital, to a for-profit entity. Under the common law in most jurisdictions, the attorney general is mandated to oversee the due application of charitable funds and to ensure that nonprofit directors and senior management fulfill their fiduciary duties to the nonprofit corporation.

The attorney general may act under a specific state for–profit conversion statute or the office’s parens patriae authority and will often review a proposed for-profit conversion transaction to ensure that it conforms to antitrust law, as well as charitable trust law. 

 

Latest News

  • Center for Ethics and Public Integrity Newsletter: May 2022 June 29, 2022
  • Supreme Court Report: George v. McDonough, 21-234. June 27, 2022
  • Supreme Court Report: Golan v. Saada, 20-1034 June 27, 2022
  • Supreme Court Report: American Hospital Association v. Becerra, 20-1114 June 27, 2022
  • Supreme Court Report: Ysleta del Sur Pueblo v. Texas, 20-493 June 27, 2022

Connect with NAAG and the Attorney General Community

Create a NAAG account to subscribe to our newsletters or mailing lists.

Create Account
Subscribe
Marble columns and the top of a federal building

scroll to filters

White Logo for the National Association of Attorneys General

1850 M Street NW
12th floor
Washington, DC 20036

TEL 202-326-6000
EMAIL 

Youtube
  • Issues
    • Issues
      • Anticorruption
      • Antitrust
      • Bankruptcy
      • Charities
      • Civil Law
    • Issues
      • Consumer Protection
      • Criminal Law
      • Cyber and Technology
      • Disaster Preparedness & Response
      • Elder Justice
    • Issues
      • Ethics
      • Human Trafficking
      • Medicaid Fraud
      • Opioids
      • Powers & Duties
    • Issues
      • Public Health
      • The U.S. Supreme Court
      • Tobacco
      • Veterans & Military
  • Our Work
    • Training & Research
    • Centers
      • NAAG Center on Cyber and Technology
      • NAAG Center for Excellence in Governance
      • NAAG Center for Supreme Court Advocacy
      • NAAG Center for Tobacco & Public Health
      • NAGTRI Center for Consumer Protection
      • NAGTRI Center for Ethics & Public Integrity
      • NAGTRI Center for International Partnerships & Strategic Collaboration
      • NAGTRI Center for Leadership Development
      • NAGTRI Center for Legal Advocacy & Faculty Development
    • Committees
    • Initiatives
      • Presidential Initiative
      • Strategic Partnerships
      • ConsumerResources.org
      • International Fellows
      • COVID-19
    • Bankruptcy
    • Policy & Advocacy
  • Events & Training
    • Event Calendar
    • Attorney General Symposium
    • Presidential Summit
    • Capital Forum
    • Region Meetings
    • NAGTRI Trainings
    • Online Learning
    • NAGTRI Faculty
    • Video Library
  • News & Resources
    • Attorney General Journal
    • Reports & Publications
    • Newsroom
    • NAAG Policy Letters
    • Podcasts
    • Online Learning
    • Research & Data
    • Member Directory
  • Attorneys General
    • What Attorneys General Do
    • Who is my Attorney General?
    • Research & Data
    • Awards & Recognition
    • Careers in Attorney General Offices
  • About NAAG
    • NAAG Staff
    • NAGTRI
    • NAAG Leadership
    • NAAG Member Services
    • NAAG Regions
    • NAAG FAQs
    • SAGE
    • NAMFCU
    • Newsroom
    • Careers at NAAG
  • Find my AG
  • NAGTRI
  • Contact Us
  • Find My AG
  • NAGTRI
  • Member Benefits
  • Consumer Complaints
  • Contact Us
  • Accessibility Statement
  • Privacy & Cookies Notice
  • Sitemap
  • Member Login

About the National Association of Attorneys General

As the nonpartisan national forum for the 56 state and territory attorneys general and their staff, NAAG provides collaboration, insight, and expertise to empower and champion America's attorneys general.
Learn More

© 2022 Copyright National Association of Attorneys General

Website by Yoko Co

Scroll To Top