2007 Minnesota Statutes

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    Subd. 1a.[Repealed, 1995 c 235 s 17]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