<a id="pl.1.3"></a><var>1.3</var>for charitable organizations; providing consistency in reporting compensation <br/>
<a id="pl.1.4"></a><var>1.4</var>information for federal and state purposes;amending Minnesota Statutes 2010, <br/>
<a id="pl.1.5"></a><var>1.5</var>section 309.53, subdivision 3.<br/>
<a id="pl.1.6"></a><var>1.6</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.7"></a><var>1.7</var>    Section 1. Minnesota Statutes 2010, section 309.53, subdivision 3, is amended to read:<br/>
<a id="pl.1.8"></a><var>1.8</var>    Subd. 3. <b>Financial statement requirements.</b> The financial statement shall include <br/>
<a id="pl.1.9"></a><var>1.9</var>a balance sheet, statement of income and expense, and statement of functional expenses, <br/>
<a id="pl.1.10"></a><var>1.10</var>shall be consistent with forms furnished by the attorney general, and shall be prepared in <br/>
<a id="pl.1.11"></a><var>1.11</var>accordance with generally accepted accounting principles so as to make a full disclosure <br/>
<a id="pl.1.12"></a><var>1.12</var>of the following, including necessary allocations between each item and the basis of <br/>
<a id="pl.1.13"></a><var>1.13</var>such allocations:<br/>
<a id="pl.1.14"></a><var>1.14</var>    (a) total receipts and total income from all sources;<br/>
<a id="pl.1.15"></a><var>1.15</var>    (b) cost of management and general;<br/>
<a id="pl.1.16"></a><var>1.16</var>    (c) program services;<br/>
<a id="pl.1.17"></a><var>1.17</var>    (d) cost of fund-raising;<br/>
<a id="pl.1.18"></a><var>1.18</var>    (e) cost of public education;<br/>
<a id="pl.1.19"></a><var>1.19</var>    (f) funds or properties transferred out of state, with explanation as to recipient and <br/>
<a id="pl.1.20"></a><var>1.20</var>purpose;<br/>
<a id="pl.1.21"></a><var>1.21</var>    (g) total net amount disbursed or dedicated within this state, broken down into total <br/>
<a id="pl.1.22"></a><var>1.22</var>amounts disbursed or dedicated for each major purpose, charitable or otherwise;<br/>
<a id="pl.1.23"></a><var>1.23</var>    (h) names of professional fund-raisers used during the accounting year and the <br/>
<a id="pl.1.24"></a><var>1.24</var>financial compensation and profit resulting to each professional fund-raiser; and<br/>
<a id="pl.2.1"></a><var>2.1</var>    (i) a list of the five highest paid directors, officers, and employees of the organization <br/>
<a id="pl.2.2"></a><var>2.2</var>and its related organizations, as that term is defined by section 
         <statute_ref>317A.011, subdivision <br/>
<a id="pl.2.3"></a><var>2.3</var>18
         </statute_ref>, that receive total compensation of more than $50,000 $100,000, together with <br/>
<a id="pl.2.4"></a><var>2.4</var>the total compensation paid to each. Total compensation shall include salaries, fees, <br/>
<a id="pl.2.5"></a><var>2.5</var>bonuses, fringe benefits, severance payments, and deferred compensation paid by the <br/>
<a id="pl.2.6"></a><var>2.6</var>charitable organization and all related organizations as that term is defined by section <br/>
<a id="pl.2.7"></a><var>2.7</var><statute_ref>317A.011, subdivision 18</statute_ref>. For purposes of this subdivision, "compensation" is defined <br/>
<a id="pl.2.8"></a><var>2.8</var>as the total amount reported on Form W-2 (Box 5) or Form 1099-MISC (Box 7) issued <br/>
<a id="pl.2.9"></a><var>2.9</var>by the organization and its related organizations to the individual. The value of fringe <br/>
<a id="pl.2.10"></a><var>2.10</var>benefits and deferred compensation paid by the charitable organization and all related <br/>
<a id="pl.2.11"></a><var>2.11</var>organizations as that term is defined by section 317A.011, subdivision 18, shall also be <br/>
<a id="pl.2.12"></a><var>2.12</var>reported as a separate item for each person whose compensation is required to be reported <br/>
<a id="pl.2.13"></a><var>2.13</var>pursuant to this subdivision.<br/>
<a id="pl.2.14"></a><var>2.14</var>    Unless otherwise required by this subdivision, the financial statement need not be <br/>
<a id="pl.2.15"></a><var>2.15</var>certified.<br/>
<a id="pl.2.16"></a><var>2.16</var>    A financial statement of a charitable organization which has received total revenue <br/>
<a id="pl.2.17"></a><var>2.17</var>in excess of $750,000 for the 12 months of operation covered by the statement shall be <br/>
<a id="pl.2.18"></a><var>2.18</var>accompanied by an audited financial statement prepared in accordance with generally <br/>
<a id="pl.2.19"></a><var>2.19</var>accepted accounting principles that has been examined by an independent certified public <br/>
<a id="pl.2.20"></a><var>2.20</var>accountant for the purpose of expressing an opinion. In preparing the audit the certified <br/>
<a id="pl.2.21"></a><var>2.21</var>public accountant shall take into consideration capital, endowment or other reserve funds, <br/>
<a id="pl.2.22"></a><var>2.22</var>if any, controlled by the charitable organization. For purposes of calculating the $750,000 <br/>
<a id="pl.2.23"></a><var>2.23</var>total revenue threshold provided by this subdivision, the value of donated food to a <br/>
<a id="pl.2.24"></a><var>2.24</var>nonprofit food shelf may not be included if the food is donated for subsequent distribution <br/>
<a id="pl.2.25"></a><var>2.25</var>at no charge, and not for resale.<br/>