LAW
Writer®
Ohio Laws and Rules
(A) Rules 109:1-1-01 to 109:1-1-10 of the Administrative Code are adopted by the office of the attorney general pursuant to section 109.27 of the Revised Code and Chapter 119. of the Revised Code.
(B) This chapter is necessary to administer sections 109.23 to 109.33 of the Revised Code to:
(1) Ensure that fiduciaries managing charitable trusts are maintaining the charitable purposes of said trusts;
(2) Ensure that fiduciaries of charitable trusts as defined in section 109.23 of the Revised Code comply with their fiduciary obligations;
(3) Facilitate investigations by the office of the attorney general as authorized by section 109.24 of the Revised Code; and
(4) Implement the registration and reporting requirements and purposes of sections 109.26 and 109.31 of the Revised Code.
(C) Each rule and every part of each rule is an independent rule and part of a rule, and the holding of any rule or part of a rule to be unconstitutional, void, or ineffective for any cause does not affect the validity or constitutionality of any other rule or part of a rule.
(D) Definitions. As used in this chapter:
(1) The term “annual federal return” means a return as defined in subsection 6103(b)(1), Internal Revenue Code, required to be filed with the internal revenue service on an annual basis.
(2) The term “charitable healthcare organization” includes any health care facility, health insurer, health maintenance organization, health sharing organization, hospital and nursing home that is a charitable trust as defined in section 109.23 of the Revised Code.
(3) The term “charitable organization” means a charitable trust that is also a nonprofit corporation or association formed under the laws of this state or another state.
(4) The term “health care facility” includes any residential facility for mentally ill persons as defined under section 5119.22 of the Revised Code, residential facility as defined in section 5123.19 of the Revised Code, community alternative home as defined in section 3724.01 of the Revised Code, adult care facility as defined in section 3722.01 of the Revised Code, alcohol or drug addiction program as defined in section 3793.01 of the Revised Code, facility licensed to provide methadone treatment under section 3793.11 of the Revised Code, facility providing services under contract with the department of mental retardation and developmental disabilities under section 5123.18 of the Revised Code and hospice care program licensed under section 3712.04 of the Revised Code that is used exclusively for care of hospice patients.
(5) The term “health insurer” means any charitable organization that is authorized to transact business in this state under Title 39 of the Revised Code, that is in the business of providing sickness and accident insurance.
(6) The term “health maintenance organization,” which may be abbreviated to “HMO,” means any charitable organization that is classified as a health maintenance organization pursuant to section 3701.07, 3724.12 or 3727.01 of the Revised Code.
(7) The term “health sharing organization” means any charitable organization that is in the business of facilitating the sharing of health care costs between members or subscribers of the organization.
(8) The term “hospital” means any charitable organization that is classified as a hospital pursuant to section 3701.07 of the Revised Code and included as a hospital in the definition set forth in section 3727.01 of the Revised Code.
(9) The term “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.
(10) The term “nursing home” means any charitable organization that is licensed under Chapter 3721. of the Revised Code.
(11) The term “property” means anything of value, whether real or personal, tangible or intangible, and includes but is not limited to securities, notes, receipts, drafts, checks, bonds, money, and rights in action.
Replaces: 109:1-1-01
Effective: 11/27/2006
R.C. 119.032 review dates: 11/27/2011
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.23
Prior Effective Dates: 5/3/76, 8/31/01
(A) Registration. Unless exempted under paragraph (B) of this rule, the following charitable trusts are required to file the registration form CFR-1 with the attorney general by May 19, 1976, or within six months after the creation of the charitable trust or within six months after occurrence of an event by reason of which such charitable trust is required to register, whichever is later:
(1) Charitable trusts which are exempt from federal taxation pursuant to subsection 501(a) and described in subsection 501(c)(3), Internal Revenue Code.
(2) Charitable healthcare organizations which are exempt from federal taxation pursuant to subsection 501(a) and described in subsection 501(c)(4), Internal Revenue Code.
(3) Charitable trusts which are treated as organizations described in Section 501(c)(3) by reason of Section 4947(a)(1) or Section 508(c), Internal Revenue Code.
(4) Charitable trusts which are treated as split-interest trusts by reason of Section 4947(a)(2), without regard to Section 4947(a)(2)(C), Internal Revenue Code.
Provided however, that charitable trusts which have registered with the attorney general pursuant to section 109.26 of the Revised Code, prior to November 19, 1975, are not required to file another registration form.
(B) Exemptions. The following charitable trusts are exempt from registration with the attorney general:
(1) Any agency or instrumentality of a governmental unit of the United States, any state, or political subdivision thereof.
(2) Parent-teacher associations, fraternities, alumni, booster or social clubs which are organized and operated in conjunction with and for the benefit of students of primary and secondary schools and educational institutions.
(3) Organizations which are organized and operated exclusively for religious purposes. These include churches, conventions and associations of churches, or integrated auxiliaries of a church.
(4) Educational institutions which normally maintain a regular faculty and curriculum and normally have a regular body of pupils or students in attendance at the place where its educational activities are regularly carried on.
(5) Charitable remainder trusts described in Section 664 of the Internal Revenue Code, created after July 31, 1969, if gifts to such trusts are deductible for federal income, gift or estate tax purposes.
(6) Charitable trusts in which all charitable interests are contingent, revocable, or subject to an unlimited power of invasion for purposes other than charitable purposes.
(7) Charitable trusts which have neither assets nor a majority of the governing body located within the state of Ohio.
(8) Charitable trusts which are controlled by one or more charitable trusts exempted from registration under the provisions of paragraph (B)(1), (B)(2), or (B)(4) of this rule. Control shall mean the power to elect or remove a majority of the governing body of the controlled charitable trust.
(C) Registration form. The registration form CFR-1 which will be supplied upon request by the charitable law section of the attorney general’s office shall disclose the following information:
(1) The name of the trust, foundation, corporation, or other type of organization.
(2) The date of formation, incorporation, agreement, or constitution.
(3) The Internal Revenue Code classification and date of exemption, if any.
(4) A description and current value of the assets; provided, however, that the charitable trust is not required to obtain a valuation of assets from an independent source to provide this information.
(5) The names and addresses of the specified charitable beneficiaries, if any, or a statement of the charitable purposes.
(6) The names and addresses of all present trustees, officers, and directors.
(7) Whether the charitable trust intends to solicit funds from the general public.
(8) The signature of the trustee or officer submitting the registration form.
(9) A copy of the will, pertinent part of the trust instrument, deed, indenture, or articles of incorporation, and any subsequent amendments of these instruments which created or funded the charitable trust, and pursuant to which it is administered; and
(10) A copy of the internal revenue service determination letter of exempt status, if available from the internal revenue service.
Effective: 11/27/2006
R.C. 119.032 review dates: 09/06/2006 and 11/27/2011
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.26
Prior Effective Dates: 5/3/1976, 8/31/2001
(A) A charitable trust which is included within a group exemption letter issued by the internal revenue service and which files a group return for federal tax purposes may file a single registration form with the internal revenue service, and thereafter a single annual report.
(B) A charitable trust which files a single registration form for a group that is within a group exemption letter issued by the internal revenue service shall also provide a list of all chapters or charitable trusts included in the group exemption letter that have assets or a majority of the governing body located within the state of Ohio, together with the employer identification number of each individual chapter or charitable trust in the group.
(C) A community trust or community foundation which files a single return for federal tax purposes may file a single registration form with the internal revenue service and thereafter a single annual report.
Effective: 11/27/2006
R.C. 119.032 review dates: 07/12/2010
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.26, 109.31
Prior Effective Dates: 5/3/1976
(A) Any charitable trust which is required to register with the attorney general pursuant to rule 109:1-1-02 of the Administrative Code, must file an annual report for any taxable year in which such trust has gross receipts of more than five thousand dollars or gross assets of more than fifteen thousand dollars. Such report shall be required for any such charitable trust whose fiscal or calendar year ends after November 19, 1975, the effective date of section 109.31 of the Revised Code. The report shall be one of the following:
(1) All charitable trusts may file, and all organizations that during any taxable year have gross receipts of less than twenty-five thousand dollars, or are otherwise exempt from filing financial information with the internal revenue service, shall file a form prescribed by the attorney general which shall contain a summary of the income, expenses, assets, liabilities, and net worth for the taxable year, and which may contain other information consistent with information contained in federal returns or purposes defined in paragraphs (B)(1) and (2) of rule 109:1-1-01 of the Administrative Code. The report shall be signed by a trustee or officer of the organization submitting the form.
(2) All organizations headquartered in Ohio that are required to file forms 990, 990-PF, or 990-EZ with the internal revenue service, may file a form prescribed by the attorney general certifying that the organization has filed such forms with the internal revenue service, signed or verified by a trustee or officer of the organization.
(3) All other organizations may file complete copies of all annual federal returns required to be filed by the organization with the internal revenue service for the taxable year, together with all schedules, attachments, and reports due with such federal return or returns, excepting lists of donors which are not public record under federal law. Such annual federal returns shall not be deemed to include copies of employment tax returns, or wage reports.
(B) The annual report shall be filed on or before the fifteenth day of the fifth month following the close of the trust’s taxable year. Annual federal returns shall be filed with the attorney general at the same time as required by the internal revenue service, taking into account any applicable extension of the federal filing date.
(C) The following fees shall accompany the annual report:
Assets Fee
Less than $25,000 -0-
$25,000 but less than $100,000 $50.00
$100,000 but less than $500,000 $100.00
$500,000 or more $200.00
The term “assets” refers to the total current value of the trust’s assets which are irrevocably devoted to charitable purposes at the end of the taxable year for which the annual report is being filed. The current value of the assets shall reflect the most recent valuation consistent with generally accepted accounting principles. Filing fees must be paid by check or by other electronic form of payment acceptable to the attorney general, payable to the treasurer, state of Ohio.
Effective: 11/27/2006
R.C. 119.032 review dates: 05/01/2009 and 05/01/2014
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.31
Prior Effective Dates: 5/3/1976, 5/30/1997, 5/13/2004
The attorney general’s on-line registration and filing system may be utilized, to the extent applicable, for the submission of registration forms, annual reports and filing fees. Registration forms and annual reports, together with the applicable fees and all correspondence relating thereto may also be directed to the “Ohio Attorney General, Charitable Law Section, 150 East Gay Street, 23rd Floor, Columbus, Ohio 43215-3130”.
Effective: 11/27/2006
R.C. 119.032 review dates: 09/06/2006 and 11/27/2011
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.26, 109.31
Prior Effective Dates: 5/3/1976, 5/30/1997, 8/31/2001
(A) Any person or organization desiring a determination by the Attorney General regarding the application of the provisions of Sections 109.23 to 109.33, inclusive, of the Revised Code, or the rules promulgated thereunder, relating to the registration or annual financial report requirements of such person or organization, may request a determination. Such request shall be in writing, setting forth the operative facts, the precise determination requested and the legal reasons which support the requested determination.
(B) In response to any such request, the Attorney General may issue a letter making the determination requested, making any other determination based upon the facts disclosed or may decline to issue a determination letter. No determination letter shall be issued with respect to any issue which is the subject of pending litigation in which the person or organization is a party, or which does not affect the person or organization making the request. A determination letter shall be binding only as between the Attorney General and the person or organization which requested the same, until revoked by the Attorney General, and may not be relied upon by any other person or organization with respect to any issue, however similar in nature.
R.C. 119.032 review dates: 07/12/2005 and 07/12/2010
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.26, 109.31
Prior Effective Dates: 5/3/75, 7/12/2000
Any charitable trust which is required to register with the attorney general and is no longer exempt from federal taxation pursuant to Section 501(c)(3) of the Internal Revenue Code, must notify the attorney general’s charitable law section immediately upon receipt of notice of the revocation. The notification to the attorney general shall include a copy of the revocation letter issued by the internal revenue service, which shall be made a public record.
R.C. 119.032 review dates: 09/06/2006 and 09/06/2011
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.26
Prior Effective Dates: 5/30/1997, 8/31/2001
Any charitable trust required to be registered with the attorney general which dissolves must, upon the time of dissolution, file a final report as described in rule 109:1-1-04 of the Administrative Code. Such report shall include a schedule of the charitable trust’s final distributions.
Effective: 11/27/2006
R.C. 119.032 review dates: 07/12/2005 and 07/12/2010
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.26, 109.31
Prior Effective Dates: 5/30/1997
(A) There is hereby established the charitable advisory council. The council shall consist of eleven members to be appointed by the attorney general and shall include members who represent a broad range of charities by size and purpose, including but not limited to representatives for grantmaking charities, charitable hospitals, charitable nursing homes and United Way organizations as well as members who possess general expertise in the management of charitable organizations. The council shall also include members who represent the interests of charitable donors and charitable beneficiaries. The members shall annually vote to elect one of its members to serve as chairperson. All members shall serve at the pleasure of the attorney general, with all terms expiring no later than the term of the appointing attorney general.
(B) The attorney general shall not compensate members of the charitable advisory council and shall not provide reimbursement to members for expenses that are incurred in the conduct of their official duties.
(C) The charitable advisory council shall advise the attorney general in determining training and educational needs of charitable organizations and model policies related to governance and administration of charitable organizations in accordance with fiduciary principles, assist the attorney general in identifying emerging issues and trends affecting charities, and advise the attorney general on other related issues at the request of the attorney general.
Effective: 11/27/2006
R.C. 119.032 review dates: 11/27/2011
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.23-109.33