Chapter 109:1-1 Registration of Charitable Trusts
(A) R ules 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.
(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
(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.
(A) Registration. Unless exempted under section 109.26 of the Revised Code or under paragraph (B) of this rule, all charitable trusts are required to register with the attorney general 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 first.
(B) Exemptions. The following charitable trusts are exempt from registration with the attorney general:
(1) Any governmental unit. For purposes of this paragraph, "governmental unit" means a political subdivision, agency, department, county, parish, municipal corporation, or other unit of the government of the United States, a state, or a foreign country. "Governmental unit" includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States.
(2) Any parent-teacher association, fraternity, alumni, booster or social club that for any taxable year has gross reciepts of less than twenty-five thousand dollars and at the end of which has gross assets of less than twenty-five thousand dollars and which is 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 carried on.
(5) Charitable trusts in which all charitable interests are contingent, revocable, or subject to an unlimited power of invasion for purposes other than charitable purposes.
(6) Charitable trusts which are not located in Ohio. For purposes of this paragraph, a charitable trust is located in Ohio and must register if not otherwise exempt if it is incorporated or otherwise organized in Ohio, filed a return or other document with the internal revenue service indicating that the charitable trust is located in Ohio, conducts program services in Ohio or has assets in Ohio. For the purpose of this paragraph, "assets" includes cash, inventory, equipment, real estate, securities, investments, financial accounts and any other property.
(C) Registration. All charitable trusts required to register shall register through the attorney general's website at: www.ohioattorneygeneral.gov/charitableregistration.
(D) Al charitable trusts required to register shall provide the following documents to the attorney general:
(1) A copy of the will, pertinent part of the trust instrument, deed, indenture or articles of incorporation, bylaws, and constitution and any subsequent amendments of these instruments that created or funded the charitable trust, and pursuant to which it is administered; and
(2) A copy of the internal revenue service determinational letter of exempt status, if available from the internal revenue service.
(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.
(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 twenty-five thousand dollars or gross assets of more than twenty-five thousand dollars. The report shall be one of the following:
(1) All charitable trusts required to file an annual report with the attorney general but 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 (B)(2) of rule 109:1-1-01 of the Administrative Code. The report shall be signed or verified by a trustee or officer of the organization submitting the form.
(2) All charitable trusts required to file an annual report with the attorney general and also required to file forms 990, 990-PF, 990-EZ, or 990-N with the internal revenue service, shall 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 charitable trusts required to file an annual report with the attorney general shall 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:
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.
R.C. 119.032 review dates: 03/20/2015
Promulgated Under: 119.03
Statutory Authority: 109.27
Rule Amplifies: 109.31
Prior Effective Dates: 5/3/1976, 5/30/1997, 5/13/2004, 11/27/2006, 6/18/2010
The attorney general's on-line registration and filing system shall be utilized, to the extent applicable, for the submission of registration forms, annual reports and filing fees. All required documents related to registration and annual reports that cannot be accepted through the on-line filing system and all correspondence may also be directed to the "Ohio Attorney General, Charitable Law Section, 150 East Gay Street, 23rd Floor, Columbus, Ohio 43215-3130."
R.C. 119.032 review dates: 03/26/2010 and 03/20/2015
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, 11/27/2006
(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.
Any charitable trust which is required to register with the attorney general and is no longer exempt from federal taxation , 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.
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.
(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.