Current through Register Vol. 41, No. 3, September 23, 2024
A. Documentation required for exemption
application. Any charitable or civic organization claiming exemption from
annual registration, pursuant to § 57-60 of the Code of Virginia , shall
file with the commissioner on a form prescribed by the commissioner, an
application for exemption from annual registration indicating the category of
the exemption claimed , with all questions answered, with required signatures,
and with all attachments required by Chapter 5 (§ 57-48 et seq.) of Title
57 of the Code of Virginia . The completed exemption application shall include
the following attachments:
1. Fee. A fee in
the amount prescribed in subsection C of § 57-60 of the Code of Virginia,
made payable to "Treasurer of Virginia";
2. Financial report. A copy of one of the
following:
a. For all organizations with
prior financial history:
(1) The completed IRS
Form 990, 990-PF, or 990-EZ, for the past fiscal year, with all schedules, as
required by the IRS, except Schedule B, and with all attachments, as filed with
the IRS. The form must be signed or , if the form is filed electronically with
the IRS, the organization must submit a copy of the IRS e-file signature
authorization ;
(2) Certified
audited financial statements for the past fiscal year; or
(3) If the organization's annual income
qualifies the organization to file Form 990-N with the IRS, a certified
treasurer's report for the past fiscal year;
b. For a newly organized charitable or civic
organization that has no financial history, a budget for the current fiscal
year shall be filed;
3.
Key personnel. A listing for the current fiscal year of the officers,
directors, trustees, and principal salaried executive staff officer, including
their names , addresses, and titles within the organization;
4. Contracts. A signed copy of all current
contracts with any professional fund-raising counsel and any professional
solicitor, as required in § 57-54 of the Code of Virginia;
5. Governing documents. Except as provided in
subdivision B 2 of this section, if the organization is incorporated, a copy of
the certificate of incorporation, articles of incorporation, and any subsequent
amendments to those documents ; if unincorporated, any governing
documents;
6. Bylaws. Except as
provided in subdivision B 2 of this section, a copy of the organization's
bylaws and any subsequent amendments to that document; and
7. Tax exemption. If the organization is
listed with the IRS as tax exempt, a copy of the IRS determination letter and
any subsequent notifications of modification ; if tax exempt status is pending,
a copy of the completed IRS application form as filed with the IRS.
B. Additional documentation
required for specific categories of exemption. In addition to the documentation
required in subsection A of this section, the organization shall submit the
following documentation for the specific exemption application category named
below:
1. Category A, Educational
Institutions:
a. Educational institutions
that do not confine solicitations to their student body, alumni, faculty,
trustees, and their families shall provide a copy of their accreditation
certificate as proof of qualification for this exemption.
b. Any foundation having an established
identity with any accredited educational institution shall provide a copy of
the institution's accreditation certificate and a letter, written by the
principal, dean, or the head of the institution by whatever name known, which
states that the institution recognizes and corroborates the established
identity.
2. Category B,
Solicitation for a Named Individual: In the absence of articles of
incorporation and bylaws, the charitable organization shall file a copy of the
trust agreement or similar document that includes the following information:
a. The names of the persons who control the
funds and the fund account;
b. The
number of signatures required to extract funds from the fund account;
c. A statement that all contributions
collected, without any deductions whatsoever, shall be turned over to the named
beneficiary for his use; and
d. A
statement , in the event the named beneficiary dies , naming those persons to
whom any funds remaining will be distributed upon dissolution of the fund
account.
3. Category C,
Solicitations not to Exceed $5,000: A copy of the organization's budget for the
current calendar year and copies of the certified treasurer's reports for the
three previous calendar years, or for the calendar years of the organization's
existence if less than three year s.
4. Category D, Membership Solicitation Only:
a. The charitable organization shall submit
documentation of the dues structure for each class of members; and
b. The charitable organization shall submit
copies of any membership recruitment correspondence for the past two
mailings.
5. Category E,
Solicitations by a Nonresident Charitable Organization: A complete description
of all solicitations to be conducted in Virginia by the organization.
6. Category F, Solicitations Confined to Five
or Fewer Contiguous Cities and Counties:
a.
The organization applying for this exemption (applicant organization) shall
submit a copy of each local solicitation permit with the application for
exemption.
b. If the organization
applying for this exemption (applicant organization) grants money to another
charitable organization (grantee) that lies within the area covered by this
exemption but pays the grantee's money to the grantee's parent organization
that lies outside the area covered by the exemption, then the applicant
organization shall keep on file for three years a statement , prepared by the
parent organization , that the grant funds are disbursed to the
grantee.
7. Category G,
Civic Organization: No additional documentation is required.
8. Category H, Health Care Institutions: The
charitable organization shall submit a copy of one of the following in support
of the category of application:
a. The
license issued by the Department of Health or by the Department of Behavioral
Health and Developmental Services;
b. Documentation to show that the health care
institution has been designated by the Centers for Medicare and Medicaid
Services (CMS) as a federally qualified health center;
c. A copy of the CMS-issued rural health
clinic certificate;
d. A copy of
the free clinic's purpose as stated in its governing documents; or
e. If applying as a supporting organization,
a copy of the health care institution's documentation (as specified in
subdivision 8 a, b, c, or d of this subsection) and a letter from the health
care institution's president, or head by whatever name known, acknowledging
that the supporting organization exists solely to support the health care
institution. If more than one health care institution is supported, supply this
documentation for each health care institution.
For any year in which a health care institution fails to
qualify for designation as a federally qualified health center , that health
care institution shall file with the commissioner a registration statement for
a charitable organization, on a form prescribed by the commissioner in
accordance with § 57-49 of the Code of Virginia and
2VAC5-610-20, or submit any other
applicable exemption application, in accordance with § 57-60 of th e Code
of Virginia and this section .
9. Category I, Nonprofit Debt Counseling
Agencies: A copy of the nonprofit debt counseling license issued by the
Virginia State Corporation Commission, pursuant to § 6.2-2001 of the Code
of Virginia.
10. Category J, Area
Agencies on Aging: A copy of the agreement between the charitable organization
and the Virginia Department for Aging and Rehabilitative Services, pursuant to
subdivision A 6 of § 51.5-135 of the Code of Virginia, which designates
the organization as an area agency on aging.
11. Category K, Trade Associations: No
additional documentation required.
12. Category L, Labor Unions, Labor
Associations, and Labor Organizations: No additional documentation
required.
13. Category M, Virginia
Area Health Education Centers: Copy of the consortium letter issued by the
program.
14. Category N, Regional
Emergency Medical Services Councils: Copy of the designation letter issued by
the Commissioner of Health.
15.
Category O, Nonprofit that Solicits Only through Grant Proposals: Copy of the
IRS determination letter recognizing the organization as a § 501(c)(3)
charitable organization.
C. Consolidated, or "joint," exemptions. A
consolidated, or "joint," exemption from annual registration, as described in
subsection C of § 57-60 of the Code of Virginia will apply to those local
chapters, branches, or affiliates that belong to a network membership. In this
instance, the parent membership organization shall submit the consolidated
application on behalf of its local chapters, branches, or affiliates, and, if
exempted, shall submit a membership roster annually to the commissioner. If the
exemption category is of a local nature, such as for civic organizations, the
exemption shall apply to the local chapters, but not to the parent
organization, if the parent organization, in this instance, is soliciting
contributions statewide. In this instance, the parent organization shall file
its own application for exemption under § 57-60 of the Code of Virginia ,
if applicable, or its own annual registration under § 57-49 of the Code of
Virginia.
Statutory Authority: § 57-66 of the Code of
Virginia.
