DAR File No. 39525

Commerce, Consumer Protection

Section R152-22-3

Application for Charitable Organization Permit

Notice of Proposed Rule

(Amendment)

DAR File No.: 39525
Filed: 07/21/2015 01:31:43 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to clarify existing language setting forth the financial information that an applicant must provide to the Division of Consumer Protection in order to register as a charitable organization.

Summary of the rule or change:

Applicants are required to provide the Division the most recently filed IRS Form 990, 990-EZ, 990-N, or 990-PF as applicable. Applicants who most recently filed an IRS Form 990-EZ, 990-N, or 990-PF must also complete a Division form in which they attest to their functional expenses. An applicant who has no previous financial information must complete the application on a pro forma basis.

State statutory or constitutional authorization for this rule:

• Section 13-2-5
• Section 13-22-6

Anticipated cost or savings to:

the state budget:

The Division has the resources in place to process registration applications from charitable organizations. No fiscal impact to the state is anticipated from this rule amendment, which is for clarification only.

local governments:

Local government is not required to enforce or comply with the Charitable Solicitations Act rules. No fiscal impact to local government is anticipated.

small businesses:

This rule amendment clarifies existing requirements regarding the financial information that a small business must provide to the Division in order to register as a charitable organization. The amendment does not change any of the costs attendant to the registration process. No fiscal impact to small businesses is anticipated.

persons other than small businesses, businesses, or local governmental entities:

This rule amendment clarifies existing requirements regarding the financial information that an affected person must provide to the Division in order to register as a charitable organization. The amendment does not change any of the costs attendant to the registration process. No fiscal impact to small businesses is anticipated.

Compliance costs for affected persons:

To comply, an affected person must provide to the Division information generated in the person's most recent tax filing and, in some cases, attest to the functional expenses of the charitable organization that is seeking registration. The costs, which are minimal, are not changed by this rule.

Comments by the department head on the fiscal impact the rule may have on businesses:

As stated in the rule analysis, this filing clarifies existing provisions that require charitable organizations to submit financial information to the Division prior to soliciting charitable contributions from consumers. The rule does not increase the costs of registration, which have long been in place.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at jjonsson@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/14/2015

This rule may become effective on:

09/21/2015

Authorized by:

Daniel O'Bannon, Director

R152. Commerce, Consumer Protection.

R152-22. Charitable Solicitations Act.

R152-22-3. Application for Charitable Organization Permit.

(1) Any application for registration as a charitable organization shall be executed on the form authorized by the Division.

(2) A statement of collections and expenditures shall be executed on the form authorized by the division.

(3) Applicants or registrants shall submit to the division, on request:

(a) an updated copy of a financial statement prepared by an independent certified public accountant;

(b) a copy of any written contracts, agreements or other documents showing to whom the applicant or registrant disbursed the funds or a portion of the funds contributed to it;

(c) a copy of the applicant's or registrant's articles of incorporation or other organizational documentation showing current legal status;

(d) a copy of the applicant's or registrant's current by-laws or other policies and procedures governing day to day operations;

(e) a setting forth of the applicant's or registrant's registered agent within the State of Utah for purposes of service of process, including his, her or its name, street address, telephone and facsimile numbers;

(f) a copy of the applicant's or registrant's IRS Section 501(c)(3) tax exemption letter, if applicable;

(g) either the social security number or driver's license number of each of the applicant's or registrant's board of directors and officers, if a corporation, or partners or the individual applicant or registrant, for the purposes of background checks;

(h) [a copy of the applicant's IRS Form 990, 990EZ or 990PF]as to the most recent tax year:

(A) if the applicant filed an IRS Form 990, a copy of the most recent IRS filing;

(B) if the applicant filed an IRS Form 990-EZ, 990-N, or 990-PF:

(I) a copy of the most recent IRS filing; and

(II) a completed Utah Statement or Functional Expenses;

(C) if the applicant is not required to file any type of IRS Form 990, a completed Utah Statement of Functional Expenses; or

(D) if the applicant has no previous financial information, the financial portion of the application, completed on a pro forma basis; and

(i) a statement as to whether the charitable organization has conducted activities regulated by the Charitable Solicitations Act, Utah Code Title 13, Chapter 22, without being duly registered with the Division.

(4) All initial applications and renewals of registration in accordance with Section 13-22-6 shall be processed within twenty (20) business days after their receipt by the division.

 

KEY: charities, consumer protection, solicitations, registration

Date of Enactment or Last Substantive Amendment: [November 29, 2012]2015

Notice of Continuation: March 22, 2012

Authorizing, and Implemented or Interpreted Law: 13-2-5; 13-22-6; 13-22-8; 13-22-9; 13-22-10