HF 3299

as introduced - 90th Legislature (2017 - 2018) Posted on 03/05/2018 02:54pm

A bill for an act
relating to nonprofit organizations; exempting the value of certain donated durable
medical equipment from certain charitable organization requirements; amending
Minnesota Statutes 2016, section 309.53, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 309.53, subdivision 3, is amended to read:

Subd. 3.

Financial statement requirements new text begin ; audited financial statements; exceptions new text end .

new text begin (a) new text end The financial statement shall include a balance sheet, statement of income and expense,
and statement of functional expenses, shall be consistent with forms furnished by the attorney
general, and shall be prepared in accordance with generally accepted accounting principles
so as to make a full disclosure of the following, including necessary allocations between
each item and the basis of such allocations:

deleted text begin (a) deleted text end new text begin (1) new text end total receipts and total income from all sources;

deleted text begin (b) deleted text end new text begin (2) new text end cost of management and general;

deleted text begin (c) deleted text end new text begin (3) new text end program services;

deleted text begin (d) deleted text end new text begin (4) new text end cost of fund-raising;

deleted text begin (e) deleted text end new text begin (5) new text end cost of public education;

deleted text begin (f) deleted text end new text begin (6) new text end funds or properties transferred out of state, with explanation as to recipient and
purpose;

deleted text begin (g) deleted text end new text begin (7) new text end total net amount disbursed or dedicated within this state, broken down into total
amounts disbursed or dedicated for each major purpose, charitable or otherwise;

deleted text begin (h) deleted text end new text begin (8) new text end names of professional fund-raisers used during the accounting year and the
financial compensation and profit resulting to each professional fund-raiser; and

deleted text begin (i) deleted text end new text begin (9) new text end a list of the five highest paid directors, officers, and employees of the organization
and its related organizations, as that term is defined by section 317A.011, subdivision 18,
that receive total compensation of more than $100,000, together with the compensation paid
to each.

new text begin (b) new text end For purposes of this subdivision, "compensation" is defined as the total amount
reported on Form W-2 (Box 5) or Form 1099-MISC (Box 7) issued by the organization and
its related organizations to the individual. The value of fringe benefits and deferred
compensation paid by the charitable organization and all related organizations as that term
is defined by section 317A.011, subdivision 18, shall also be reported as a separate item for
each person whose compensation is required to be reported pursuant to this subdivision.

new text begin (c) new text end Unless otherwise required by this subdivision, the financial statement need not be
certified.

new text begin (d) new text end A financial statement of a charitable organization which has received total revenue
in excess of $750,000 for the 12 months of operation covered by the statement shall be
accompanied by an audited financial statement prepared in accordance with generally
accepted accounting principles that has been examined by an independent certified public
accountant for the purpose of expressing an opinion. In preparing the audit the certified
public accountant shall take into consideration capital, endowment or other reserve funds,
if any, controlled by the charitable organization.

new text begin (e) new text end For purposes of calculating the $750,000 total revenue threshold provided by this
subdivision deleted text begin , deleted text end new text begin :
new text end

new text begin (1) new text end the value of donated food to a nonprofit food shelf may not be included if the food
is donated for subsequent distribution at no charge, and not for resale deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) the value of durable medical equipment and supplies donated to a medical surplus
recovery organization may not be included if the organization redistributed the equipment
and supplies at no charge within the United States, and not for resale.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end