HF 1769

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to charitable organizations; requiring 
  1.3             reporting of certain compensation increases; amending 
  1.4             Minnesota Statutes 2002, section 309.53, subdivision 3.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 309.53, 
  1.7   subdivision 3, is amended to read: 
  1.8      Subd. 3.  The financial statement shall include a balance 
  1.9   sheet, statement of income and expense, and statement of 
  1.10  functional expenses, shall be consistent with forms furnished by 
  1.11  the attorney general, and shall be prepared in accordance with 
  1.12  generally accepted accounting principles so as to make a full 
  1.13  disclosure of the following, including necessary allocations 
  1.14  between each item and the basis of such allocations: 
  1.15     (a) total receipts and total income from all sources; 
  1.16     (b) cost of management and general; 
  1.17     (c) program services; 
  1.18     (d) cost of fund-raising; 
  1.19     (e) cost of public education; 
  1.20     (f) funds or properties transferred out of state, with 
  1.21  explanation as to recipient and purpose; 
  1.22     (g) total net amount disbursed or dedicated within this 
  1.23  state, broken down into total amounts disbursed or dedicated for 
  1.24  each major purpose, charitable or otherwise; 
  1.25     (h) names of professional fund-raisers used during the 
  2.1   accounting year and the financial compensation and profit 
  2.2   resulting to each professional fund-raiser; and 
  2.3      (i) a list of the five highest paid directors, officers, 
  2.4   and employees of the organization and its related organizations, 
  2.5   as that term is defined by section 317A.011, subdivision 18, 
  2.6   that receive total compensation of more than $50,000, together 
  2.7   with the total compensation paid to each.  Total compensation 
  2.8   shall include salaries, fees, bonuses, fringe benefits, 
  2.9   severance payments, and deferred compensation paid by the 
  2.10  charitable organization and all related organizations as that 
  2.11  term is defined by section 317A.011, subdivision 18.  If the 
  2.12  total compensation paid to one of the five highest paid 
  2.13  directors, officers, and employees has increased by more than 
  2.14  five percent since the last statement filed under this section, 
  2.15  the statement must include the reasons justifying the specific 
  2.16  increase in compensation.  
  2.17     Unless otherwise required by this subdivision, the 
  2.18  financial statement need not be certified. 
  2.19     A financial statement of a charitable organization which 
  2.20  has received total revenue in excess of $350,000 for the 12 
  2.21  months of operation covered by the statement shall be 
  2.22  accompanied by an audited financial statement prepared in 
  2.23  accordance with generally accepted accounting principles that 
  2.24  has been examined by an independent certified public accountant 
  2.25  for the purpose of expressing an opinion.  In preparing the 
  2.26  audit the certified public accountant shall take into 
  2.27  consideration capital, endowment or other reserve funds, if any, 
  2.28  controlled by the charitable organization.  
  2.29     Sec. 2.  [EFFECTIVE DATE.] 
  2.30     Section 1 is effective August 1, 2004, and applies to 
  2.31  reports filed on or after that date.