First, the Bad News
Recent reductions in the Arizona Corporation Commission’s budget are impacting nonprofit corporations doing business in Arizona in the following ways:
Increased Turn-around Time. The turn-around time for filings will likely increase over the next six to twelve months, with regular filings taking as much as 250 days to be processed and expedited filings taking as much as 50 days to process. While there may be some consideration given when a document needs to be filed on an emergency basis (for example, to complete a transaction), the Arizona Corporation Commission will likely not be staffed to handle “emergency” filings on a regular basis.
No Notice of Annual Reports. Nonprofit corporations doing business in Arizona are required to file an annual report with the Arizona Corporation Commission. In the past, the Arizona Corporation Commission sent postcards to corporations reminding them when their annual report was coming due. As of October 1, 2009, those postcards will no longer be sent. Each corporation is responsible for knowing when its annual report is due. If the annual report is not timely filed, the Arizona Corporation Commission may proceed with administrative dissolution of the corporation. Corporation’s can check their due date for filing the annual return and obtain a copy of the form online.
Now for the Good News
Financial Statements. As a result of legislation that passed last year, nonprofit corporations are no longer required to file a financial statement with the annual report. Annual reports will continue to be accepted if a financial statement is included, but nonprofit corporations do not need to expend the time or resources to complete a financial statement for the annual report.
Affidavits of Publication. As a result of legislation that passed earlier this year, affidavits of publication for any type of document are no longer required to be filed with the Arizona Corporation Commission. The Arizona Corporation Commission will accept an affidavit of publication for filing, but there will be no associated filing fee. Publication requirements remain unchanged and, therefore, corporations should continue to publish documents as necessary, obtain affidavits of publication and maintain the affidavits in their corporate records if they choose not to file them with the Arizona Corporation Commission.