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HF 786

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 05/13/2011 08:36am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to state government; modifying certain financial statement requirements
for charitable organizations; providing consistency in reporting compensation
information for federal and state purposes; amending Minnesota Statutes 2010,
section 309.53, subdivision 3.

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

Section 1.

Minnesota Statutes 2010, 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 deleted text begin $50,000deleted text end new text begin $100,000new text end , together with
the deleted text begin totaldeleted text end compensation paid to eachdeleted text begin . Total compensation shall include salaries, fees,
bonuses, fringe benefits,
deleted text end deleted text begin severance payments, and deferred compensation paid by the
charitable organization and
deleted text end deleted text begin all related organizations as that term is defined by section
deleted text end deleted text begin 317A.011, subdivision 18deleted text end .new text begin 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 end

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 to a
nonprofit food shelf may not be included if the food is donated for subsequent distribution
at no charge, and not for resale.