Arkansas
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Overall Free to Give Index 5.26/10
Rank 24th
Category Score (0–10) Rank (50 states)
Overall Free to Give Index 5.26 24th
Broad Policy Environment 3.60 44th
Nonprofit Freedom 4.68 33rd
Donor Confidence 7.50 5th

Highlights

  • Strong mandates and protections: Arkansas ranks 5th in Donor Confidence, supported by donor privacy protections, generally deductible charitable gifts, and a DAF-friendly environment.
  • Predictable regulatory process: New regulations require legislative approval, contributing to a stable legal environment for nonprofits.
  • Zero-dollar start up fees: The state imposes no registration fee, and relatively low incorporation fees, reducing initial entry costs for forming nonprofit organizations.
  • Weak broad policy environment: Arkansas ranks 44th in the Broad Policy Environment, reflecting its high occupational licensing burden, uncompetitive tax code, and middling economic freedom.
  • Multiple regulatory requirements: Charities must register and file annual renewals, though they do not have to pay registration or annual fees. Paid solicitor requirements are relatively steep and it requires annual audits.
  • Limited tax and legal protections: Arkansas offers no general sales tax exemption for charities, provides no donor standing, offering fewer safeguards for charitable assets and restricted gifts.

Detailed Scorecard

1. Broad Policy Environment

1A. Occupational Freedom (rescaled 0 to 10) 1.17
1B. Tax Competitiveness (rescaled 0 to 10) 3.05
1C. EFNA (0 to 10) 6.57

2. Nonprofit Freedom

2A. Charitable Startup Regulations

Requires charitable registration? Yes
Top Registration Fee $0.00
Minimum Registration Fee $0.00
Top Incorporation Fee $50.00
Minimum Incorporation Fee $50.00

2B. Charitable Reporting Regulations

Requires Annual Report? Yes
Top Annual Fee $0.00
Minimum Annual Fee $0.00
Requires Additional Corporate Filings Yes
Other Fees $0.00
Tiered Fee Structure No
Overlapping Regulators No

2C. Paid Solicitor Requirements

Commercial Fundraisers Must Register with the State Yes
Paid Solicitor Registration Fee $200.00
Paid Solicitor Renewal Fee $200.00
Surety Bond for Professional Fundraisers $10,000.00
Must Paid Solicitors Required to Report to the State in Order to Start Fundraising? Yes
Fundraising Consultant Registration Required Yes
Annual Financial Reporting by Commercial Fundraisers Required Yes
Must File Contracts Between Charities and Commercial Fundraisers Yes
Individual solicitors employed by professional fundraisers must register separately? Yes

2D. General Audit threshold (revenue)

General Audit threshold (revenue) $1,000,000.00

3. Donor Confidence

3A. State has Never Introduced Disclosure Yes
3B. State has Privacy Law Yes
3C. State gives Donors Standing No
3D. State has UPMIFA Protections Yes
3E. Donations are Generally Deductible Yes
3F. General Sales Tax Exemption No
3G. State has Never Proposed DAF Restrictions Yes
3H. New Regulations Require Legislative Approval Yes