2007 Minnesota Statutes

CHAPTER 309. SOCIAL AND CHARITABLE ORGANIZATIONS

309.01 [Repealed, 1951 c 550 s 78]

309.02 [Repealed, 1951 c 550 s 78]

309.023 [Repealed, 1951 c 550 s 78]

309.03 [Repealed, 1951 c 550 s 78]

309.04 [Repealed, 1951 c 550 s 78]

309.05 [Repealed, 1951 c 550 s 78]

309.06 [Repealed, 1951 c 550 s 78]

309.07 [Repealed, 1951 c 550 s 78]

309.08 [Repealed, 1951 c 550 s 78]

309.09 [Repealed, 1951 c 550 s 78]

309.10 [Repealed, 1971 c 568 s 27]

309.11 [Repealed, 1971 c 568 s 27]

309.12 [Repealed, 1971 c 568 s 27]

309.13 [Repealed, 1971 c 568 s 27]

309.14 [Repealed, 1971 c 568 s 27]

309.15 [Repealed, 1971 c 568 s 27]

309.16 [Repealed, 1971 c 568 s 27]

309.17 [Repealed, 1971 c 568 s 27]

309.171 [Repealed, 1971 c 568 s 27]

309.175 [Repealed, 1971 c 568 s 27]

309.176 [Repealed, 1973 c 494 s 6; 1973 c 651 s 4]

309.18 [Repealed, 1951 c 550 s 78]

309.19 [Repealed, 1951 c 550 s 78]

309.20 [Repealed, 1951 c 550 s 78]

REGULATION OF CHARITABLE SOLICITATIONS

309.50 SOLICITATION OF CHARITABLE FUNDS; DEFINITIONS.
    Subdivision 1. Scope. As used in sections 309.50 to 309.61 the words, terms and phrases,
defined in this section have the meanings given them.
    Subd. 2. Person. "Person" means any individual, organization, group, firm, copartnership,
association, partnership, corporation, company, trust or joint stock association, church, religious
sect, religious denomination, society, or league, and includes any trustee, receiver, assignee,
agent or other similar representative thereof.
    Subd. 3. Charitable purpose. "Charitable purpose" means any charitable, benevolent,
philanthropic, patriotic, religious, social service, welfare, educational, eleemosynary, cultural,
artistic, or public interest purpose, either actual or purported.
    Subd. 4. Charitable organization. "Charitable organization" means any person who engages
in or purports to engage in solicitation for a charitable purpose and includes a chapter, branch,
area office or similar affiliate or any person soliciting contributions within the state for a parent
charitable organization, but does not include an organization whose primary purpose is supporting
or opposing any candidate for elective office, or influencing the nomination for election or the
election of any candidate for elective office.
    Subd. 5. Contribution. "Contribution" means the promise or grant of any money or property
of any kind or value, including the promise to pay, or payment for merchandise or rights of any
other description when representation is made by or on behalf of the seller or solicitor that the
whole or any part of the price will be applied to a charitable purpose. "Contributions" shall not
include any funds obtained by a charitable organization through grants from any governmental
agency. "Contributions" shall include, in the case of a charitable organization offering goods and
services to the public, the difference between the direct cost of the goods and services to the
charitable organization and the price at which the charitable organization or any person acting on
its behalf resells those goods or services to the public.
    Subd. 6. Professional fund-raiser. "Professional fund-raiser" means any person who for
financial compensation or profit performs for a charitable organization any service in connection
with which contributions are, or will be, solicited in this state by the compensated person or
by any compensated person the person employs, procures, or engages to solicit; or any person
who for compensation or profit plans, manages, advises, consults, or prepares material for, or
with respect to, the solicitation in this state of contributions for a charitable organization. No
investment adviser, investment adviser representative, broker-dealer, or agent licensed pursuant
to chapter 80A, or lawyer, accountant, or banker who advises a person to make a charitable
contribution or who provides legal, accounting, or financial advice in the ordinary course
of a profession or business shall be deemed, as a result of the advice, to be a professional
fund-raiser. A bona fide salaried officer, employee, or volunteer of a charitable organization is not
a professional fund-raiser.
    Subd. 6a. Accounting year. "Accounting year" means the 12 month period on which a
charitable organization keeps its financial records.
    Subd. 7.[Repealed, 1969 c 112 s 17]
    Subd. 8.[Repealed, 2006 c 212 art 1 s 26]
    Subd. 9. Parent organization. "Parent organization" is that part of a charitable organization
which coordinates, supervises or exercises control over policy, fund-raising, and expenditures, or
assists or advises one or more chapters, branches or affiliates in the state.
    Subd. 10. Solicit; solicitation. "Solicit" and "solicitation" mean the request directly or
indirectly for any contribution, regardless of which party initiates communication, on the plea or
representation that such contribution will or may be used for any charitable purpose, and include
any of the following methods of securing contributions:
(1) oral or written request;
(2) the distribution, circulation, mailing, posting, or publishing of any handbill, written
advertisement, or publication;
(3) the making of any announcement to the press, over the radio, by television, by telephone,
or telegraph concerning an appeal, assemblage, athletic or sports event, bazaar, benefit, campaign,
contest, dance, drive, entertainment, exhibition, exposition, party, performance, picnic, sale, or
social gathering, which the public is requested to patronize or to which the public is requested to
make a contribution;
(4) the sale of, offer, or attempt to sell, any advertisement, advertising space, book, card,
magazine, merchandise, subscription, ticket of admission, or any other thing, or the use of the
name of any charitable person in any offer or sale as an inducement or reason for purchasing any
such item, or the making of any statement in connection with any such sale, that the whole or any
part of the proceeds from any such sale will be used for any charitable purpose. A "solicitation"
shall be deemed completed when made, whether or not the person making the same receives any
contribution or makes any such sale.
    Subd. 11. Management and general costs. "Management and general costs" means costs
determined to be management and general by generally accepted accounting principles.
    Subd. 12. Fund-raising costs. "Fund-raising costs" means costs determined to be
fund-raising by generally accepted accounting principles.
Expenses incurred in planning or developing a fund-raising campaign, regardless of whether
the expenses are incurred before, during, or after that campaign, constitute fund-raising costs.
History: 1961 c 309 s 1; 1969 c 112 s 1; 1973 c 762 s 1-4; 1978 c 601 s 1-4; 1980 c 516 s 2;
1983 c 75 s 1; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 444; 1987 c 336 s 27

309.501 [Repealed, 2007 c 101 s 4]

309.502 [Repealed, 1993 c 192 s 110]

309.51 [Repealed, 1973 c 762 s 18]

309.515 EXEMPTIONS.
    Subdivision 1. Registration and reporting exemption. Subject to the provisions of
subdivisions 2 and 3, sections 309.52 and 309.53 shall not apply to any of the following:
(a) Charitable organizations:
(1) which did not receive total contributions in excess of $25,000, exclusive of the direct cost
of prizes given to the public by the charitable organization in connection with lawful gambling
conducted in compliance with chapter 349, from the public within or without this state during
the accounting year last ended, and
(2) which do not plan to receive total contributions in excess of such amount from the public
within or without this state during any accounting year, and
(3) whose functions and activities, including fund-raising, are performed wholly by persons
who are unpaid for their services, and
(4) none of whose assets or income inure to the benefit of or are paid to any officer.
For purposes of this chapter, a charitable organization shall be deemed to receive in addition
to contributions solicited from the public by it, the contributions solicited from the public by any
other person and transferred to it. Any organization constituted for a charitable purpose receiving
an allocation from a community chest, united fund or similar organization shall be deemed to
have solicited that allocation from the public.
(b) A religious society or organization which is exempt from filing a federal annual
information return pursuant to Internal Revenue Code, section 6033(a)(2)(A)(i) and (iii), and
Internal Revenue Code, section 6033(a)(2)(C)(i).
(c) Any educational institution which is under the general supervision of the commissioner
of education, the Board of Trustees of the Minnesota State Colleges and Universities, or the
University of Minnesota or any educational institution which is accredited by the University of
Minnesota or the North Central Association of Colleges and Secondary Schools, or by any other
national or regional accrediting association.
(d) A fraternal, patriotic, social, educational, alumni, professional, trade or learned society
which limits solicitation of contributions to persons who have a right to vote as a member. The
term "member" shall not include those persons who are granted a membership upon making
a contribution as the result of a solicitation.
(e) A charitable organization soliciting contributions for any person specified by name at the
time of the solicitation if all of the contributions received are transferred to the person named with
no restrictions on the person's expenditure of it and with no deductions whatsoever.
(f) A private foundation, as defined in section 509(a) of the Internal Revenue Code of 1954,
which did not solicit contributions from more than 100 persons during the accounting year last
ended.
    Subd. 2. Limitation. Where any such group or association or person soliciting for the
benefit of such group or association described in subdivision 1, clauses (a) and (d), employs a
professional fund-raiser to solicit or assist in the solicitation of contributions, sections 309.52 and
309.53 shall apply and such group or association or person shall file a registration statement as
provided in section 309.52 and an annual report as provided in section 309.53.
    Subd. 3.[Repealed, 1987 c 336 s 47]
History: 1973 c 349 s 2; 1973 c 762 s 5; 1975 c 321 s 2; 1978 c 601 s 5; 1983 c 284 s 17;
1985 c 248 s 70; 1986 c 444; 1987 c 336 s 28; 1989 c 151 s 1; 1996 c 395 s 18; 1998 c 398
art 5 s 55; 2003 c 130 s 12

309.52 STATEMENT REQUIREMENT.
    Subdivision 1. Filing; contents. No charitable organization, except as otherwise provided in
section 309.515, shall solicit contributions from persons in this state by any means whatsoever
unless, prior to any solicitation, there shall be on file with the attorney general upon forms
provided by the attorney general, a registration statement containing, without limitation, the
following information:
(a) Legally established name.
(b) Name or names under which it solicits contributions.
(c) Form of organization.
(d) Date and place of organization.
(e) Address of principal office in this state, or, if none, the name and address of the person
having custody of books and records within this state.
(f) Names and addresses of, and total annual compensation paid to, officers, directors,
trustees, and chief executive officer.
(g) Federal and state tax exempt status.
(h) Denial at any time by any governmental agency or court of the right to solicit
contributions.
(i) Date on which accounting year of the charitable organization ends.
(j) General purposes for which organized.
(k) General purposes for which contributions to be solicited will be used.
(l) Methods by which solicitation will be made.
(m) Copies of contracts between charitable organization and professional fund-raisers
relating to financial compensation or profit to be derived by the professional fund-raisers. Where
any such contract is executed after filing of the registration statement, a copy thereof shall be filed
within seven days of the date of execution.
(n) Board, group or individual having final discretion as to the distribution and use of
contributions received.
(o) The amount of total contributions received during the accounting year last ended.
(p) Such other information as the attorney general may by rule or order require to promote
fairness of the solicitation and to assure full and fair disclosure of all material information to
the attorney general.
    Subd. 1a. Certain charitable organizations. A charitable organization whose total
contributions received during any accounting year are in excess of $25,000, exclusive of the
direct cost of prizes given to the public by the charitable organization in connection with lawful
gambling conducted in compliance with chapter 349, shall file a registration statement with the
attorney general within 30 days after the date on which the organization's total contributions
exceeded $25,000, exclusive of the direct cost of prizes given to the public by the charitable
organization in connection with lawful gambling conducted in compliance with chapter 349. The
registration shall exist unless revoked by a court of competent jurisdiction, or the attorney general,
or as provided in subdivision 7. This subdivision shall not apply to a charitable organization
which had filed a registration statement pursuant to this section for the accounting year last ended
or to organizations described in section 309.515, subdivision 1.
    Subd. 2. Registration fee and financial statement. The registration statement filed by a
charitable organization shall include a registration fee of $25 and a financial statement of the
organization's operation for its most recent 12 months period immediately preceding the filing
of the first registration statement.
    Subd. 3. How executed. The registration statement shall be executed by any two duly
constituted officers of the charitable organization who shall acknowledge that it was executed
pursuant to resolution of the board of directors or trustees, or if there be no such board, then by its
managing group which has approved the content of the registration statement, and shall certify
that the board of directors or trustees, or if there be no such board, its managing group, have
assumed, and will continue to assume responsibility for determining matters of policy and have
supervised, and will continue to supervise the finances of the charitable organization.
    Subd. 4. Affiliate filing on behalf of parent. Where any chapter, branch, area office or
similar affiliate of a charitable organization is supervised and controlled by a parent organization
located within or outside the state, the affiliate may file a registration statement on behalf of
the parent organization in addition to or as part of its own registration statement, or the parent
organization may file a registration statement on behalf of the affiliate in addition to or as part of
its own registration statement.
    Subd. 5.[Repealed, 1978 c 601 s 29]
    Subd. 6.[Repealed, 1978 c 601 s 29]
    Subd. 7. Failure to file. In no event shall the registration of a charitable organization
continue in effect after the date such organization should have filed, but has failed to file an annual
report, including the payment of all required fees, in accordance with the requirements of section
309.53, and such organization, if in default under such section, shall not be eligible to file a new
registration statement until it shall have filed the required annual report with the attorney general.
    Subd. 8.[Repealed, 1978 c 601 s 29]
    Subd. 9. Special purpose organization. A charitable organization that is organized and
operated primarily for the purpose of offering and paying rewards for information leading to the
apprehension or conviction of criminal suspects and that satisfies subdivision 10 shall not be
required to include in its registration statement the information described in subdivision 1, clauses
(f) and (o), or the financial statement described in subdivision 2, and notwithstanding subdivision
3, its registration statement may be executed by the mayor, city manager, or chief of police of the
municipality, if any, with which the organization is primarily associated.
    Subd. 10. Application of subdivision 9 to certain organizations. Subdivision 9 applies
to an organization whose financial statement described in subdivision 2 has been audited and
reported on by a certified public accountant and made available with the accountant's report for
inspection by its members and by the mayor, city manager, or chief of police of the municipality,
if any, with which the organization is primarily associated, and whose registration statement
contains a certificate of compliance with this subdivision.
History: 1961 c 309 s 3; 1969 c 112 s 3-6; 1969 c 1129 art 4 s 4; 1973 c 762 s 6; 1976 c 239
s 90; 1978 c 601 s 6,7; 1982 c 585 s 1,2; 1987 c 336 s 29,30,46; 1992 c 503 s 1; 1995 c 235 s 2,3

309.53 ANNUAL REPORT.
    Subdivision 1. Required filing. Every charitable organization that is required to file or
that files a registration statement pursuant to section 309.52 shall file an annual report with the
attorney general upon forms provided by the attorney general or on forms identical thereto on
or before July 15 of each year if its books are kept on a calendar year basis, or on or before the
15th day of the seventh month following the close of its fiscal year if its books are kept on a
fiscal year basis. For cause shown the attorney general may extend the time for filing the annual
report for a period not to exceed four months.
    Subd. 1a.[Repealed, 1995 c 235 s 17]
    Subd. 2. Contents; effect of filing and failure to file. Such annual report shall include a
financial statement covering the immediately preceding 12-month period of operation, shall be
executed by any two duly constituted officers of the charitable organization, and shall be executed
pursuant to resolution of the board of directors or trustees, or if there be no such board, then by
its managing group which has approved the content of the annual report. Except as provided in
section 309.55, subdivision 1, the annual report shall also include a copy of all tax or information
returns, including all schedules and amendments, submitted by the charitable organization to
the Internal Revenue Service for the period covered by the annual report except any schedules
of contributors to the organization.
A charitable organization which files the annual report required under this subdivision with
the attorney general is not required to file the tax return with the commissioner of revenue. An
organization which fails to file the annual report on or before the date required or allowed under
this section shall pay a late fee of $50. This late fee shall be in addition to all other fees, costs, and
penalties which may be imposed pursuant to this section or section 309.57.
    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 $50,000, together with the total compensation paid to each. Total
compensation shall include salaries, fees, bonuses, fringe benefits, severance payments, and
deferred compensation paid by the charitable organization and all related organizations as that
term is defined by section 317A.011, subdivision 18.
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 $350,000 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.
    Subd. 3a. Filing of federal tax return. The federal tax return may be filed in lieu of other
financial statements if it is prepared in accordance with generally accepted accounting principles
and meets the requirements for financial statements set forth in subdivisions 2, 3, and 4.
    Subd. 4. Registered parent organization. Where a registration statement has been filed
by a parent organization or affiliate as provided in section 309.52, subdivision 4, the registered
parent organization may file the annual report required under this section on behalf of the chapter,
branch, area office, similar affiliate, or person in addition to or as part of its own report or the
registered affiliate may file the annual report required under this section on behalf of the parent
organization in addition to or as part of its own report. The accounting information required
under this section shall be set forth separately and not in consolidated form with respect to every
chapter, branch, area office, similar affiliate, or person within the state which raises or expends
more than $25,000, exclusive of the direct cost of prizes given to the public by the charitable
organization in connection with lawful gambling conducted in compliance with chapter 349. The
attorney general may permit any chapter, branch, area office, similar affiliate, or person to file a
consolidated statement with any other chapter, branch, area office, similar affiliate, or person or
parent organization if the interests of the charitable beneficiaries will not be prejudiced thereby
and separate accounting information is not required for proper supervision.
    Subd. 5.[Repealed, 1978 c 601 s 29]
    Subd. 6. Special purpose organization. A charitable organization that is organized and
operated primarily for the purpose of offering and paying rewards for information leading to the
apprehension or conviction of criminal suspects and that satisfies subdivision 7 shall not be
required to include in its annual report the financial statement described in subdivisions 2 and 3,
and notwithstanding subdivision 2, its annual report may be executed by the mayor, city manager,
or chief of police of the municipality, if any, with which the organization is primarily associated.
    Subd. 7. Application of subdivision 6 to certain organizations. Subdivision 6 applies to an
organization whose financial statement described in subdivisions 2 and 3 has been audited and
reported on by a certified public accountant and made available with the accountant's report for
inspection by its members and by the mayor, city manager, or chief of police of the municipality,
if any, with which the organization is primarily associated, and whose annual report contains a
certificate of compliance with this subdivision.
    Subd. 8. Reregistration fee. A reregistration fee of $25 shall be paid by every charitable
organization submitting the annual report required by this section.
History: 1961 c 309 s 4; Ex1967 c 49 s 2; 1969 c 112 s 7-10; 1969 c 1129 art 4 s 4; 1973 c
762 s 7; 1978 c 601 s 8-10; 1981 c 148 s 1; 1982 c 585 s 3,4; 1983 c 284 s 18,19; 1983 c 289 s
114 subd 1; 1983 c 301 s 184,185; 1984 c 655 art 1 s 92; 1987 c 336 s 31-34,46; 1994 c 465 art 1
s 37; 1995 c 235 s 4-7; 1996 c 384 s 3; 2000 c 302 s 1; 2001 c 45 s 1,2

309.531 REGISTRATION OF PROFESSIONAL FUND-RAISERS.
    Subdivision 1. General requirements. No person shall act as a professional fund-raiser
unless registered with the attorney general. The registration statement must be in writing, under
oath, in the form prescribed by the attorney general and must be accompanied by a registration
fee of $200. Each registration is effective for a period of not more than 12 months and in any
event expires on April 30 next following the date of registration. The registration may be renewed
for additional one-year periods on application and payment of all required fees. A professional
fund-raiser failing to register on the date required by this section or failing to file the financial
report required by this section on or before the date provided shall pay a late fee of $300. This late
fee shall be in addition to all other fees, costs, and penalties which may be imposed pursuant to
this section or section 309.57.
    Subd. 2. Required registration statement. The registration statement of the professional
fund-raiser shall consist of the following:
(a) If the professional fund-raiser at any time has custody of or access to contributions from
a solicitation, or if any person the professional fund-raiser employs, obtains, or engages has
custody of or access to contributions from a solicitation, the registration statement shall include
a bond, in which the professional fund-raiser shall be the principal obligor. The bond shall be
in the sum of $20,000, with one or more responsible sureties whose liability in the aggregate as
the sureties will at least equal that sum. In order to maintain the registration, the bond shall be
in effect for the full term of the registration. The bond, which may be in the form of a rider to a
larger blanket liability bond, shall run to the state and to any person who may have a cause of
action against the principal obligor of the bond for any liabilities resulting from the obligor's
conduct of any activities subject to sections 309.50 to 309.61 or arising out of a violation of the
statutes or a rule adopted under the statutes.
(b) If the professional fund-raiser, or any person the professional fund-raiser employs,
procures, or engages, solicits in this state, the registration statement shall include a completed
"solicitation notice" on a form provided by the attorney general. The solicitation notice shall
include a copy of the contract described in paragraph (c), the projected dates when soliciting
will commence and terminate, the location and telephone number from where the solicitation
will be conducted, the name and residence address of each person responsible for directing and
supervising the conduct of the campaign, a statement as to whether the professional fund-raiser
will at any time have custody of contributions, and a description of the charitable program for
which the solicitation campaign is being carried out. The charitable organization on whose behalf
the professional fund-raiser is acting shall certify that the solicitation notice and accompanying
material are true and complete to the best of its knowledge.
(c) The professional fund-raiser shall also include, as part of the registration statement, a
copy of the contract between the charitable organization and the professional fund-raiser. The
contract shall:
(1) be in writing;
(2) contain information as will enable the attorney general to identify the services the
professional fund-raiser is to provide, including whether the professional fund-raiser will at
any time have custody of contributions; and
(3) if the professional fund-raiser or any person the professional fund-raiser employs,
procures, or engages, directly or indirectly, solicits in this state, the contract shall disclose the
percentage or a reasonable estimate of the percentage of the total amount solicited from each
person which shall be received by the charitable organization for charitable purposes.
The stated percentages required by this section and section 309.556, subdivision 2, shall
exclude any amount which the charitable organization is to pay as expenses of the solicitation
campaign, including the cost of merchandise or services sold or events staged.
(d) The registration statement shall also include the financial report for previous campaigns
conducted by the professional fund-raiser in this state as set forth in subdivision 4.
    Subd. 3. Solicitations on behalf of charity; written authorization. No professional
fund-raiser shall use the name of or solicit on behalf of any charitable organization unless such
solicitor has written authorization from two officers of such organization, a copy of which shall be
filed with the attorney general. Such written authorization shall conform to the requirements of
the contract described in subdivision 2, clause (c).
    Subd. 4. Solicitation campaign; financial report. Within 90 days after a solicitation
campaign has been completed, and 90 days following the anniversary of the commencement of a
solicitation campaign lasting more than one year, the professional fund-raiser who solicited
contributions in this state in conjunction with a charitable organization shall file with the attorney
general a financial report for the campaign, including gross revenue and an itemization of all
expenses incurred. The report shall be completed on a form prescribed by the attorney general.
The report shall be signed by an authorized official of the professional fund-raiser and an
authorized official from the charitable organization and they shall certify, under oath, that it is
true to the best of their knowledge.
History: 1973 c 762 s 8; 1987 c 336 s 35; 1987 c 358 s 115; 1989 c 151 s 2; 1994 c 465
art 3 s 10; 1995 c 235 s 8,9

309.532 [Repealed, 1987 c 336 s 47]

309.533 INVESTIGATIONS.
    Subdivision 1. Attorney general investigation powers. The attorney general:
(a) may make public or private investigations within or outside the state as deemed necessary
by the attorney general to determine whether any person has violated or is about to violate any
provision of sections 309.50 to 309.61 or any rule or order thereunder, or to aid in the enforcement
of sections 309.50 to 309.61 in the prescribing of rules and forms thereunder, and may publish
information, concerning the violation of sections 309.50 to 309.61 or any rule or order thereunder.
(b) may require or permit any person to file a statement in writing, under oath or otherwise as
the attorney general determines, as to all facts and circumstances concerning the matter being
investigated.
    Subd. 2.[Repealed, 1987 c 336 s 47]
    Subd. 3.[Repealed, 1987 c 336 s 47]
    Subd. 4.[Repealed, 1987 c 336 s 47]
    Subd. 5. Attorney general discovery powers. In connection with an investigation under this
section, the attorney general may obtain discovery from any person regarding any matter, fact, or
circumstance, not privileged, that is relevant to the subject matter involved in the investigation, in
accordance with the provisions of section 8.31.
History: 1978 c 601 s 11; 1986 c 444; 1987 c 336 s 36,46

309.534 [Repealed, 1987 c 336 s 47]

309.54 RECORDS.
    Subdivision 1. Filed documents are public records. Registration statements, annual
reports, and other documents required to be filed shall become public records in the Office of
the Attorney General.
    Subd. 2. Inspection by attorney general. Every person subject to sections 309.50 to 309.61
shall maintain, for not less than three years from the date of preparation, accurate and detailed
books and records to provide the information required by sections 309.50 to 309.61. All such
books and records shall be open to inspection at all reasonable times by the attorney general.
    Subd. 3. Retention of books and records. Every charitable organization which is required
to file an annual report under section 309.53 shall keep and maintain, at the place designated in
its registration statement, the original books and records, or true copies thereof, pertaining to all
money or other property collected from residents of this state and to the disbursement of such
money or property. Such books and records shall be preserved for a period of not less than three
years from the date of preparation thereof.
History: 1961 c 309 s 5; 1969 c 112 s 11,12; 1969 c 1129 art 4 s 4; 1973 c 762 s 9; 1987 c
336 s 37; 1995 c 235 s 10

309.55 PROHIBITED PRACTICES.
    Subdivision 1. Use of names. No charitable organization or person acting for a charitable
organization shall use the name of any other person (except that of an officer, director or trustee of
the charitable organization by or for which contributions are being solicited) in public solicitation
literature without the written consent of such other person. Nothing herein contained shall
prevent the publication of names of contributors, without their written consent, in an annual
or other periodic report issued by a charitable organization for the purpose of reporting to its
membership. Nothing in section 309.52 or 309.53 shall require the disclosure in any registration
statement or annual report of the names of individual contributors and the amount contributed
by each one individually.
    Subd. 2. Confusing or misleading names, symbols, or statements. No charitable
organization soliciting contributions shall use a name, symbol or statement so closely related or
similar to that used by another charitable organization or governmental agency that the use thereof
would tend to confuse or mislead the public.
    Subd. 3. Misrepresentation of registration. Registration under sections 309.50 to 309.61
shall not be deemed to constitute an endorsement by the state of Minnesota of the charitable
organizations so registered, and no person shall directly or indirectly misrepresent the registration
hereunder to any donor or prospective donor.
    Subd. 4. Use of uniformed state or local personnel. No charitable organization and no
person acting on behalf of a charitable organization shall use any uniformed personnel of any
local, state or federal agency or department to solicit contributions. This subdivision shall not
apply to firefighters who solicit contributions in uniform.
    Subd. 5. False or deceptive practices. No charitable organization and no person acting on
behalf of a charitable organization shall use or employ any fraud, false pretense, false promise,
misrepresentation, misleading statement, misleading name, mark or identification, or deceptive
practice, method or device, with the intent that others should rely thereon in connection with any
charitable solicitation, including any such actions or omissions designed to confuse or mislead a
person to believe that such organization is another organization having the same or like purposes;
or to believe that the funds being solicited are or will be used for purposes and programs
conducted within or for persons located within the state of Minnesota when such is not the case; or
to otherwise present purposes and uses of the funds which are not as provided within the purposes
and uses filed upon registration of said organization under this chapter, or if no such registration
has been filed, then as provided under the exemption of said organization from federal and state
income taxes as an organization formed and operating for charitable purposes as defined herein.
    Subd. 6. Sale of contributor list. No person shall, either as an individual or as agent, officer
or employee of a charitable organization sell or otherwise furnish for a consideration to any other
person any list of contributors unless the contributor has consented to the transaction.
    Subd. 7. Soliciting organization payments to unregistered organization. No moneys
solicited within the state by any organization subject to this chapter shall be paid or contributed by
the soliciting organization to any other charitable organization not registered under this chapter
by which it is controlled or with which it is affiliated by contract, franchise or otherwise, whose
purposes, policies, articles or bylaws are in conflict with those of the soliciting organization
upon any material matter unless such other organization to which such moneys are to be paid or
delivered shall agree to be bound by the purposes, policies, articles and bylaws of the soliciting
organization.
History: 1961 c 309 s 6; 1973 c 762 s 10; 1974 c 367 s 1; 1975 c 386 s 1,2; 1977 c 429
s 63; 1986 c 444; 1987 c 336 s 38

309.555 [Repealed, 1987 c 336 s 47]

309.556 PUBLIC DISCLOSURE REQUIREMENTS.
    Subdivision 1. Identity of organization; percentage of deductibility; description of
program. Prior to orally requesting a contribution or contemporaneously with a written request
for a contribution, the following information shall be clearly disclosed:
(a) the name and location by city and state of each charitable organization on behalf of
which the solicitation is made;
(b) the tax deductibility of the contribution; and
(c) a description of the charitable program for which the solicitation campaign is being
carried out; and, if different, a description of the programs and activities of the organization on
whose behalf the solicitation campaign is being carried out.
If the solicitation is made by direct personal contact, the required information shall also be
disclosed prominently on a written document which shall be exhibited to the person solicited. If
the solicitation is made by radio, television, letter, telephone, or any other means not involving
direct personal contact, the required information shall be clearly disclosed in the solicitation.
    Subd. 2. Identity of professional fund-raiser. In addition to the disclosures required
by subdivision 1, any professional fund-raiser soliciting contributions in this state shall also
disclose the name of the professional fund-raiser as on file with the attorney general and that the
solicitation is being conducted by a "professional fund-raiser." The disclosures required by this
subdivision shall be given in the same manner as the disclosures required by subdivision 1.
History: 1973 c 762 s 12; 1984 c 527 s 1; 1987 c 336 s 39; 1989 c 151 s 3; 1995 c 235 s 11

309.56 SERVICE OF PROCESS.
    Subdivision 1. Manner. Any charitable organization or professional fund-raiser which
solicits contributions in this state, but does not maintain an office within the state shall be subject
to service of process, as follows:
(a) By service thereof on its registered agent within the state, or if there be no such registered
agent, then upon the person, if any, who has been designated in the registration statement as
having custody of books and records within this state; where service is effected upon the person
so designated in the registration statement a copy of the process shall, in addition, be mailed to the
charitable organization or professional fund-raiser at its last known address;
(b) When a charitable organization or professional fund-raiser has solicited contributions in
this state, but maintains no office within the state, has no registered agent within the state, and no
designated person having custody of its books and records within the state, or when a registered
agent or person having custody of its books and records within the state cannot be found as
shown by the return of the sheriff of the county in which such registered agent or person having
custody of books and records has been represented by the charitable organization or professional
fund-raiser as maintaining an office, service may be made as in any other civil suit, or in the
manner provided by section 5.25, or in a manner as the court may direct.
    Subd. 2. Consent to service. The solicitation of any contribution within this state shall be
deemed to be the agreement of the charitable organization or professional fund-raiser that any
process against it which is so served in accordance with the provisions of this section shall be of
the same legal force and effect as if served personally within this state.
History: 1961 c 309 s 7; 1969 c 1129 art 4 s 4; 1973 c 762 s 13; 1978 c 601 s 14; 1978 c
674 s 60; 1986 c 444; 1987 c 336 s 40; 1995 c 128 art 1 s 10

309.57 DISTRICT COURT JURISDICTION, PENALTIES, ENFORCEMENT.
    Subdivision 1. General. Upon the application of the attorney general the district court is
vested with jurisdiction to restrain, enjoin, and redress violations of sections 309.50 to 309.61.
The court may make any necessary order or judgment including, but not limited to, injunctions,
restitution, appointment of a receiver for the defendant or the defendant's assets, suspension of
the defendant's registration, awards of reasonable attorney fees, and costs of investigation and
litigation, and may award to the state civil penalties up to $25,000 for each violation of sections
309.50 to 309.61. In ordering injunctive relief, the attorney general shall not be required to
establish irreparable harm but only a violation of statute or that the requested order promotes the
public interest. The court may, as appropriate, enter a consent judgment or decree without the
finding of illegality.
    Subd. 2. Assurance of discontinuance. The attorney general may accept an assurance of
discontinuance of any method, act, or practice in violation of sections 309.50 to 309.61 from
any person alleged to be engaged or to have been engaged in the method, act, or practice. The
assurance may, among other terms, include a stipulation for the voluntary payment by the person
of the costs of investigation, or of an amount to be held in escrow pending the outcome of an
action or as restitution to aggrieved persons, or both. Any assurance of discontinuance shall be in
writing and be filed with the district court of the county of the violator's residence or principal
place of business or in Ramsey County. An assurance shall not be considered an admission
of a violation for any purpose. Failure to comply with the assurance of discontinuance shall
be punishable as contempt.
History: 1961 c 309 s 8; 1987 c 336 s 41; 1989 c 151 s 4

309.58 [Repealed, 1987 c 336 s 47]

309.581 VIOLATIONS; PENALTIES.
Any person who willfully and knowingly violates any provision of sections 309.50 to
309.61, or who willfully and knowingly gives false information to the attorney general in
statements, reports, or contracts required to be filed by sections 309.50 to 309.61 shall be guilty of
a misdemeanor.
History: 1969 c 112 s 14; 1969 c 1129 art 4 s 4; 1976 c 2 s 123; 1987 c 336 s 46

309.582 CONSULTANTS.
The attorney general may retain as consultants such accountants or other experts as the
administration of this chapter may require.
History: 1969 c 112 s 15

309.583 [Repealed, 1976 c 2 s 124]

309.59 CONSTRUCTION; POWERS OF ATTORNEY GENERAL.
Sections 309.50 to 309.61 shall not be construed to limit or to restrict the exercise of the
powers or the performance of the duties of the attorney general which the attorney general
otherwise is authorized to exercise or perform under any other provision of law.
History: 1961 c 309 s 10; 1986 c 444

309.591 RULEMAKING POWER.
The attorney general may promulgate such rules as are reasonably necessary to carry out
and make effective the provisions and purposes of this chapter.
History: 1973 c 762 s 15; 1980 c 516 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s
92; 1987 c 336 s 46

309.60 RECIPROCAL AGREEMENTS, OTHER STATES.
The attorney general may enter into reciprocal agreements with a like authority of any
other state or states for the purpose of exchanging information made available to the attorney
general or to such other like authority.
History: 1961 c 309 s 11; 1969 c 1129 art 4 s 4; 1973 c 762 s 16; 1987 c 336 s 46

309.61 SEVERABILITY.
If any provision of sections 309.50 to 309.61 or the application thereof to any person or
circumstance is held invalid the invalidity shall not affect other provisions or application of said
sections which can be given effect without the invalid provision or application, and to this end
the provisions of said sections are severable.
History: 1961 c 309 s 12

MANAGEMENT OF INSTITUTIONAL FUNDS

309.62 UNIFORM MANAGEMENT OF INSTITUTIONAL FUNDS ACT; DEFINITIONS.
    Subdivision 1. Scope. For the purposes of sections 309.62 to 309.68, the following terms
shall have the meanings here given them.
    Subd. 2. Institution. "Institution" means an incorporated or unincorporated organization
organized and operated exclusively for educational, religious, charitable, or other eleemosynary
purposes, or a governmental organization to the extent that it holds funds exclusively for any of
these purposes.
    Subd. 3. Institutional fund. "Institutional fund" means a fund held by an institution for its
exclusive use, benefit, or purposes, but does not include (a) a fund held for an institution by a
trustee that is not an institution or (b) a fund in which a beneficiary that is not an institution has an
interest, other than possible rights that could arise upon violation or failure of the purposes of
the fund.
    Subd. 4. Endowment fund. "Endowment fund" means an institutional fund, or any part
thereof, not wholly expendable by the institution on a current basis under the terms of the
applicable gift instrument.
    Subd. 5. Historic dollar value. "Historic dollar value" means the aggregate fair value in
dollars of (a) an endowment fund at the time it became an endowment fund, (b) each subsequent
donation to the fund at the time it is made, and (c) each accumulation made pursuant to a
direction in the applicable gift instrument at the time the accumulation is added to the fund. The
determination of historic dollar value made in good faith by the institution is conclusive.
    Subd. 6. Gift instrument. "Gift instrument" means a will, deed, grant, conveyance,
agreement, memorandum, writing, or other governing document, including the terms of any
institutional solicitations from which an institutional fund resulted, under which property is
transferred to or held by an institution as an institutional fund.
History: 1973 c 313 s 1

309.63 APPROPRIATION OF APPRECIATION.
The governing board may appropriate for expenditure for the uses and purposes for which an
endowment fund is established so much of the net appreciation, realized and unrealized, in the fair
value of the assets of an endowment fund over the historic dollar value of the fund as is prudent
under the standard established by section 309.67. This section does not limit the authority of the
governing board to expend funds as permitted under other law, the terms of the applicable gift
instrument, or the charter of the institution.
History: 1973 c 313 s 2

309.64 RULE OF CONSTRUCTION.
Section 309.63 does not apply if the applicable gift instrument indicates the donor's
intention that net appreciation shall not be expended. A restriction upon the expenditure of net
appreciation may not be implied from a designation of a gift as an endowment, or from a direction
or authorization in the applicable gift instrument to use only "income," "interest," "dividends,"
or "rents, issues or profits," or "to preserve the principal intact," or a direction which contains
other words of similar import. This rule of construction applies to gift instruments executed
or in effect before or after August 1, 1973.
History: 1973 c 313 s 3

309.65 INVESTMENT AUTHORITY.
In addition to an investment otherwise authorized by law or by the applicable gift instrument,
and without restriction to investments a fiduciary may make, the governing board, subject to any
specific limitations set forth in the applicable gift instrument or in the applicable law other than
law relating to investments by a fiduciary, may:
(1) invest and reinvest an institutional fund in any real or personal property deemed advisable
by the governing board, whether or not it produces a current return, including mortgages, stocks,
bonds, debentures, and other securities of profit or nonprofit corporations, shares in or obligations
of associations, partnerships, or individuals, and obligations of any government or subdivision
or instrumentality thereof;
(2) retain property contributed by a donor to an institutional fund for as long as the governing
board deems advisable;
(3) include all or any part of an institutional fund in any pooled or common fund maintained
by the institution; and
(4) invest all or any part of an institutional fund in any other pooled or common fund
available for investment, including shares or interests in regulated investment companies, mutual
funds, common trust funds, investment partnerships, real estate investment trusts, or similar
organizations in which funds are commingled and investment determinations are made by persons
other than the governing board.
History: 1973 c 313 s 4

309.66 DELEGATION OF INVESTMENT MANAGEMENT.
Except as otherwise provided by the applicable gift instrument or by applicable law relating
to governmental institutions or funds, the governing board may (1) delegate to its committees,
officers or employees of the institution or the fund, or agents, including investment counsel, the
authority to act in place of the board in investment and reinvestment of institutional funds, (2)
contract with independent investment advisors, investment counsel or managers, banks, or trust
companies, so to act, and (3) authorize the payment of compensation for investment advisory or
management services.
History: 1973 c 313 s 5

309.67 STANDARD OF CONDUCT.
In the administration of the powers to appropriate appreciation, to make and retain
investments, and to delegate investment management of institutional funds, members of a
governing board shall discharge their duties in the manner provided in section 317A.251. In
so doing they shall consider long and short term needs of the institution in carrying out its
educational, religious, charitable, or other eleemosynary purposes, its present and anticipated
financial requirements, expected total return on its investments, price level trends, and general
economic conditions.
History: 1973 c 313 s 6; 1989 c 304 s 133

309.68 GENERAL CONTRACT REGULATION.
    Subdivision 1. Donor consent required. With the written consent of the donor, the
governing board may release, in whole or in part, a restriction imposed by the applicable gift
instrument on the use or investment of an institutional fund.
    Subd. 2. Governing board application for relief. If written consent of the donor cannot
be obtained by reason of death, disability, unavailability, or impossibility of identification, the
governing board may apply in the name of the institution to the district court for release of a
restriction imposed by the applicable gift instrument on the use or investment of an institutional
fund. The attorney general shall be notified of the application and shall be given an opportunity to
be heard. If the court finds that the restriction is obsolete, inappropriate, or impracticable, it may
by order release the restriction in whole or in part. A release under this subsection may not change
an endowment fund to a fund that is not an endowment fund.
    Subd. 3. Effect. A release under this section may not allow a fund to be used for purposes
other than the educational, religious, charitable, or other eleemosynary purposes of the institution
affected.
    Subd. 4. Application. This section does not limit the application of the doctrine of cy pres.
History: 1973 c 313 s 7; 1986 c 444

309.69 SEVERABILITY.
If any provision of sections 309.62 to 309.71 or the application thereof to any person or
circumstances is held invalid, the invalidity shall not affect other provisions or applications of
sections 309.62 to 309.71 which can be given effect without the invalid provision or application,
and to this end the provisions of sections 309.62 to 309.71 are declared severable.
History: 1973 c 313 s 8

309.70 UNIFORMITY OF APPLICATION AND CONSTRUCTION.
Sections 309.62 to 309.71 shall be so applied and construed as to effectuate its general
purpose to make uniform the law with respect to the subject of sections 309.62 to 309.71 among
those states which enact it.
History: 1973 c 313 s 9

309.71 CITATION.
Sections 309.62 to 309.71 may be cited as the "Uniform Management of Institutional Funds
Act."
History: 1973 c 313 s 10

ACQUIRING INTERESTS IN INSURANCE

309.72 ACQUISITION OF INTERESTS IN INSURANCE.
An organization described in section 170(c) of the Internal Revenue Code of 1986, as
amended through December 31, 1991, may purchase, accept, or otherwise acquire an interest in a
life insurance policy as beneficiary or owner, as provided in section 61A.073.
History: 1992 c 483 s 3