SF 2500

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to charitable organizations; changing 
  1.3             definitions; amending Minnesota Statutes 1998, section 
  1.4             309.501, subdivision 1. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1998, section 309.501, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
  1.9   the following terms have the meanings given them.  
  1.10     (b) "Registered combined charitable organization" means a 
  1.11  federated funding organization: 
  1.12     (1) which is tax exempt under section 501(c)3 of the 
  1.13  Internal Revenue Code of 1986, as amended through December 31, 
  1.14  1992 (hereinafter "Internal Revenue Code"), and to which 
  1.15  contributions are deductible under section 170 of the Internal 
  1.16  Revenue Code; 
  1.17     (2) which exists for purposes other than solely 
  1.18  fundraising; 
  1.19     (3) which secures funds for distribution to 14 or more 
  1.20  affiliated agencies in a single, annual consolidated effort; 
  1.21     (4) which is governed either by a local, independent, 
  1.22  voluntary board of directors which represents the broad 
  1.23  interests of the public and 90 percent of the directors of the 
  1.24  governing board live or work in the community or surrounding 
  1.25  area or, if the charitable agencies are solely educational 
  2.1   institutions which meet the requirements of paragraph (c), by a 
  2.2   national board of directors that has a local advisory board 
  2.3   composed of members who live or work in the community or 
  2.4   surrounding area; 
  2.5      (5) which distributes at least 70 percent of its total 
  2.6   campaign income and revenue, plus donor designated amounts 
  2.7   raised to its affiliated agencies and to the designated agencies 
  2.8   it supports and expends no more than 30 percent of its total 
  2.9   income and revenue, plus donor designated amounts raised for 
  2.10  management and general costs and fund raising costs; 
  2.11     (6) which distributes at least 70 percent of its total 
  2.12  campaign income and revenue to affiliated agencies and 
  2.13  designated agencies that are incorporated in Minnesota or 
  2.14  headquartered in the service area in which the state employee 
  2.15  combined charitable campaign takes place or, if the charitable 
  2.16  agencies are solely educational institutions which meet the 
  2.17  requirements of paragraph (c), distributes at least 70 percent 
  2.18  of the state employee combined charitable campaign income and 
  2.19  revenue directly to Minnesota residents using established 
  2.20  eligibility criteria; 
  2.21     (7) and each which supports designated or affiliated agency 
  2.22  supported by the recipient institution devotes agencies that 
  2.23  devote substantially all of its their activities directly to 
  2.24  providing health, welfare, social, or other human services to 
  2.25  individuals; 
  2.26     (8) and each which supports designated or affiliated agency 
  2.27  supported by the recipient institution with funds contributed by 
  2.28  state employees through the combined charitable campaign 
  2.29  provides agencies that provide all or substantially all of its 
  2.30  their health, welfare, social, or other human services, in the 
  2.31  community and surrounding area in which the state employee 
  2.32  combined charitable campaign takes place; 
  2.33     (9) and each charitable agency is which supports designated 
  2.34  or affiliated agencies that are affiliated with no more than one 
  2.35  registered combined charitable organization within the 
  2.36  registered combined charitable organization's service area in 
  3.1   the state's employee combined charitable campaign; and 
  3.2      (10) which has been registered with the commissioner of 
  3.3   employee relations in accordance with this section.  
  3.4      Registered combined charitable organization includes a 
  3.5   charitable organization organized by Minnesota state employees 
  3.6   and their exclusive representatives for the purpose of providing 
  3.7   grants to nonprofit agencies providing Minnesota residents with 
  3.8   food or shelter if the charitable organization meets the 
  3.9   requirements of clauses (1), (4), and (5). 
  3.10     Registered combined charitable organization includes a 
  3.11  federated funding organization whose affiliated agencies provide 
  3.12  substantial health and human services to needy individuals in 
  3.13  developing nations and which has a national, independent, 
  3.14  voluntary board of directors if the registered combined 
  3.15  charitable organization meets the requirements of clauses (1) to 
  3.16  (3), (5), (7), (9), and (10); and paragraphs (c) and (d). 
  3.17     (c) "Affiliated agency" means a charitable agency that is 
  3.18  represented by a federation and has an ongoing relationship with 
  3.19  that federation which involves a review and monitoring process 
  3.20  to ensure financial, managerial, and programmatic responsibility.
  3.21     (d) "Charitable agency" means a governmental agency or an 
  3.22  organization (1) which is tax exempt under section 501(c)3 of 
  3.23  the Internal Revenue Code; (2) to which contributions are 
  3.24  deductible under section 170 of the Internal Revenue Code; and 
  3.25  (3) which is in compliance with the provisions of this chapter. 
  3.26     (e) "State employees combined charitable campaign" means 
  3.27  the annual state campaign whereby a state employee may designate 
  3.28  that the employee's contribution to a registered combined 
  3.29  charitable organization may be deducted from the pay of the 
  3.30  employee for each pay period. 
  3.31     Sec. 2.  [EFFECTIVE DATE.] 
  3.32     Section 1 is effective the day following final enactment.