By Ryan McNeill, Attorney at law
Governor Josh Stein signed Session Law 2026-52 (House Bill 517) on July 7, 2026, making a series of updates to the North Carolina Nonprofit Corporation Act. The change most likely to affect our clients is a brand-new annual reporting requirement for nonprofit corporations, and that includes the vast majority of charitable organizations, homeowners associations, and condominium associations in the state. Many owners don’t realize that most HOAs and condo associations are organized as nonprofit corporations in addition to being governed by the Planned Community Act or Condominium Act, so this law reaches them even though it never mentions “HOA” or “association” by name.
Starting with reports due in 2027, every domestic nonprofit corporation (and every foreign nonprofit authorized to do business in North Carolina) must file an annual report with the Secretary of State by November 15 each year. The report must include the corporation’s name and state of incorporation, its registered agent and registered office information, the address of its principal office, the names and contact information for its principal officers, a brief description of its activities, and a contact email address. The information must be current as of the filing date, and reports can be amended later if corrections are needed. This is a new obligation (historically, most North Carolina nonprofits have not had to file anything with the Secretary of State on a recurring basis).
The filing itself is inexpensive and straightforward: $18 to file electronically, or $25 to file by paper. If the Secretary of State doesn’t receive a report within 60 days of the deadline, the corporation is presumed delinquent, and continued non-compliance can eventually lead to administrative dissolution. Boards will want to designate who handles this each year (a management company, registered agent, legal counsel, or a board officer) and confirm that their registered agent and principal office information is accurate before that first report is due.
The law’s other provisions, including a new three-director minimum for nonprofits formed on or after October 1, 2026, clarifications to board committee authority, and updated merger/domestication rules, are important but are expected to have little practical effect on most existing associations or charitable organizations.
If you need assistance with this, please reach out to our office to speak with one of our attorneys to discuss your options and help you prepare well before the November 2027 deadline.