HF 3642

as introduced - 89th Legislature (2015 - 2016) Posted on 03/29/2016 11:07am

A bill for an act
relating to nonprofit organizations; exempting donated goods from certain
charitable organization requirements; amending Minnesota Statutes 2014, section
309.53, subdivision 3.

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

Section 1.

Minnesota Statutes 2014, section 309.53, subdivision 3, is amended to read:

Subd. 3.

Financial statement requirements.

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:

(a) total receipts and total income from all sources;

(b) cost of management and general;

(c) program services;

(d) cost of fund-raising;

(e) cost of public education;

(f) funds or properties transferred out of state, with explanation as to recipient and
purpose;

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

(h) names of professional fund-raisers used during the accounting year and the
financial compensation and profit resulting to each professional fund-raiser; and

(i) 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. 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.

Unless otherwise required by this subdivision, the financial statement need not be
certified.

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. For purposes of calculating the $750,000
total revenue threshold provided by this subdivision, the value of donated food new text begin or goods new text end to
a nonprofit deleted text begin food shelf deleted text end new text begin organization new text end may not be included if the food deleted text begin is deleted text end new text begin or goods are new text end donated
for subsequent distribution at no charge, and not for resale.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end