57-49 - Registration of charitable organizations; prohibition against support of terrorists.
§ 57-49. Registration of charitable organizations; prohibition againstsupport of terrorists.
A. Every charitable organization, except as otherwise provided in thischapter, which intends to solicit contributions within the Commonwealth, orhave funds solicited on its behalf, shall, prior to any solicitation, file aninitial registration statement with the Commissioner upon forms acceptable tohim. Each registration statement shall thereafter be refiled on or before thefifteenth day of the fifth calendar month of the next and each followingfiscal year in which such charitable organization is engaged in solicitationactivities within the Commonwealth. It shall be the duty of the president,chairman or principal officer of such charitable organization to file thestatements required under this chapter. A charitable organization'sregistration statement may alternatively be filed online on a websiteapproved by the Commissioner. Such statement shall contain the followinginformation:
1. The name of the organization and the purpose for which it was organized.
2. The principal address of the organization, the address of any offices inthe Commonwealth and its designated agent for process within theCommonwealth. If no such agent is designated, the organization shall bedeemed to have designated the Secretary of the Commonwealth. If theorganization does not maintain an office, the name and address of the personhaving custody of its financial records.
3. The names and addresses of any chapters, branches or affiliates in theCommonwealth.
4. The place where and the date when the organization was legallyestablished, the form of its organization, and a reference to anydetermination of its tax-exempt status under the Internal Revenue Code.
5. The names and addresses of the officers, directors, trustees and theprincipal salaried executive staff officer.
6. A copy of a balance sheet and income and expense statement, with theopinion of any independent public accountant, for the organization'simmediately preceding fiscal year; a copy of a financial statement certifiedby an independent public accountant covering, in a consolidated report,complete information as to all the preceding year's fund-raising activitiesof the charitable organization, showing kind and amount of funds raised,fund-raising expenses and allocation of disbursement of funds raised; or acopy of Internal Revenue Service Form 990. The report required by thissubdivision shall comply with the accounting standards prescribed pursuant to§ 57-53. Any organization with gross revenue of less than $25,000 may submita balance sheet and income and expense statement verified under oath oraffirmation by the treasurer of the organization.
7. A statement showing the computation of the percentages provided for in §57-58.
8. A statement indicating whether the organization intends to solicitcontributions from the public directly or have such done on its behalf byothers.
9. A statement indicating whether the organization is authorized by any othergovernmental authority to solicit contributions and whether it, or anyofficer, professional fund-raiser or professional solicitor thereof, is orhas ever been enjoined by any court or otherwise prohibited from solicitingcontributions in any jurisdiction.
10. The general purpose or purposes for which the contributions to besolicited shall be used.
11. The name or names under which it intends to solicit contributions.
12. The names of the individuals or officers of the organization who willhave final responsibility for the custody of the contributions.
13. The names of the individuals or officers of the organization responsiblefor the final distribution of the contributions.
14. A statement indicating whether the organization, or any officer,professional fund-raiser or professional solicitor thereof, has ever beenconvicted of a felony and, if so, a description of the pertinent facts.
15. A copy of the current articles of incorporation, bylaws, or othergoverning documents. If current copies are already on file with theCommissioner, only amendments, if any, shall be filed in years after theinitial registration.
16. A description of the types of solicitation to be undertaken.
A1. Every registration statement shall include the following language:
"No funds have been or will knowingly be used, directly or indirectly, tobenefit or provide support, in cash or in kind, to terrorists, terroristorganizations, terrorist activities, or the family members of any terrorist."
A2. No person shall be registered by the Commonwealth or by any locality tosolicit funds that are intended to benefit or support terrorists, terroristorganizations or terrorist activities. No person shall be registered by theCommonwealth or by any locality to solicit funds that are intended to benefitor support a family member of any terrorist, unless a court of competentjurisdiction within the Commonwealth, upon petition of an interested person,finds by clear and convincing evidence that, for a period of at least threeyears next preceding any act of terrorism committed by such terrorist orterrorist organization, the family members to whom the benefit of thecontributions shall inure have been living separate and apart from theterrorist or terrorist organization, and the family members have not providedany financial support, in cash or in kind, to the terrorist or terroristorganization for the same period of time.
B. Each chapter, branch or affiliate, except an independent member agency ofa federated fund-raising organization, shall separately report theinformation required by this section or report the information to its parentorganization which shall then furnish such information as to itself and allof its state affiliates, chapters and branches in a consolidated form. Allaffiliated organizations included in a consolidated registration statementshall be considered as one charitable organization for all purposes of thischapter. If a consolidated registration statement is filed, all statementsthereafter filed shall be upon the same basis unless permission to change isgranted by the Commissioner.
C. Each federated fund-raising organization shall report the informationrequired by this section in a consolidated form. Any federated fund-raisingorganization may elect to exclude from its consolidated report informationrelating to the separate fund-raising activities of all of its independentmember agencies. No member agency of a federated fund-raising organizationshall be required to report separately any information contained in such aconsolidated report. Any separate solicitations campaign conducted by, or onbehalf of, any such member agency shall nevertheless be subject to all otherprovisions of this chapter.
D. The registration forms shall be signed by the chief fiscal officer and byanother authorized officer of the charitable organization. If theregistration forms are filed online using a website approved by theCommissioner, the charitable organization shall follow the procedures on thatwebsite for signing the forms.
E. Every charitable organization which submits an independent registration tothe Commissioner shall pay an annual registration fee of (i) $30 if its grosscontributions for the preceding year do not exceed $25,000; (ii) $50 if itsgross contributions exceed $25,000 but do not exceed $50,000; (iii) $100 ifits gross contributions exceed $50,000 but do not exceed $100,000; (iv) $200if its gross contributions exceed $100,000 but do not exceed $500,000; (v)$250 if its gross contributions exceed $500,000 but do not exceed $1 million;and (vi) $325 if its gross contributions exceed $1 million. A parentorganization filing on behalf of one or more chapters, branches or affiliatesor a federated fund-raising organization filing on behalf of its memberagencies shall pay a single annual registration fee for itself and suchchapters, branches, affiliates or member agencies included in theregistration statement. Organizations with no prior financial history filingan initial registration shall be required to pay an initial fee of $100.Organizations with prior financial history filing an initial registrationshall be required to pay an initial fee of $100 in addition to the annualregistration fee. Any organization which allows its registration to lapse,without requesting an extension of time to file, shall be required toresubmit an initial registration. An extension may be granted upon receipt ofa written request.
(1974, c. 574; 1975, c. 221; 1979, c. 595; 1984, c. 268; 1986, c. 31; 1987,c. 561; 1988, c. 322; 1990, c. 711; 1993, cc. 577, 583; 1995, cc. 170, 205;2003, cc. 576, 977, 1009; 2005, c. 329.)