Executive Order No. 31, 1-1-02
By executive order of the President, the University of Missouri adopted the following guidelines for charitable solicitation of University employees for payroll deductions for the University Employee Charitable Campaign beginning on or after January 1, 2002.
- Registered combined charitable organizations
- The purposes of the University Employee Charitable Campaign are to:
- Recognize the donation of time and money to charitable organizations as a worthy endeavor and to provide University employees with an opportunity to contribute financially to those organizations.
- Present one campaign per campus which minimizes distractions and interruptions to the University workplace.
- Maximize voluntary University participation by focusing the resources of both the campuses and the charitable organizations on one campaign per campus.
- Assure solicitation in a fair and non-discriminatory time, place and manner as determined by the University employees themselves.
- Definitions: As used in this section, the following terms have the meanings given them.
- "Registered combined charitable organization" means a federated funding organization:
(1) which is tax exempt under section 501(c)(3) of the Internal Revenue Code of 1986, as most recently amended (hereinafter "Internal Revenue Code"), and to which contributions are deductible under section 170 of the Internal Revenue Code;
(2) which exists for purposes other than solely fundraising;
(3) which secures funds for distribution to 14 or more affiliated agencies in a single, annual consolidated effort;
(4) which is governed either by a local, independent, voluntary board of directors which represents the broad interests of the public and 90 percent of the directors of the governing board live or work in the community or surrounding area for the campus where funds are being solicited or, if the charitable agencies are solely educational institutions which meet the requirements of paragraph A.2.a.1., by a national board of directors that has a local advisory board composed of members who live or work in the community or surrounding area where funds are being solicited;
(5) which distributes at least 75 percent of its total campaign income and revenue, plus donor designated amounts raised to its affiliated agencies and to the designated agencies it supports and expends no more than 25 percent of its total income and revenue, plus donor designated amounts raised for management and general costs and fund raising costs;
(6) which distributes at least 75 percent of its total campaign income and revenue to affiliated agencies and designated agencies that are incorporated in Missouri or headquartered in the service area in which the University employee combined charitable campaign takes place, or if the charitable agencies are solely educational institutions which meet the requirements of paragraph A.2.a.1., distributes at least 75 percent of the University employee combined charitable campaign income and revenue directly to Missouri residents using established eligibility criteria;
(7) and each designated or affiliated agency supported by the recipient institution devotes substantially all of its activities directly to providing health, welfare and social services directly to, or for the direct benefit of human beings;
(8) and each designated or affiliated agency supported by the recipient institution with funds contributed by University employees through the combined charitable campaign provides all or substantially all of its health, welfare and social services, in the community and surrounding area in which the University employee combined charitable campaign takes place;
(9) and each charitable agency is affiliated with no more than one registered combined charitable organization within the registered combined charitable organization's service area in the University's employee combined charitable campaign; and
(10) which has been registered with the University Controller's Office in accordance with this section and which has filed an annual report as required by these guidelines after participating in the University employee combined charitable campaign.
- "Affiliated agency" means a charitable agency that is represented by a federation and has an ongoing relationship with that federation which involves a review and monitoring process to ensure financial, managerial and programmatic responsibility.
- "Charitable agency" means a governmental agency or an organization (1) which is tax exempt under section 501 (c)(3) or the Internal Revenue Code; (2) to which contributions are deductible under section 170 of the Internal Revenue Code; and (3) which is in compliance with the provisions of this chapter.
- "Related Organization" means an organization that controls, is controlled by, or is under common control with, another corporation. Control exists if an organization:
(1) owns, directly or indirectly, at least 50 percent of the stock ownership or membership interests of another organization;
(2) has the right, directly or indirectly, to elect, appoint, or remove 50 percent or more of the voting members of the governing body of another organization; or
(3) has the power, directly or indirectly, to direct or cause the direction of the management and policies of another organization, whether through the ownership of voting interests, by contract, or otherwise.
- "University employees combined charitable campaign" means the annual University campaign whereby a University employee may designate that the employee's contribution to a registered combined charitable organization may be deducted from the pay of the employee for each pay period.
- "Registered combined charitable organization" means a federated funding organization:
- Designated contributions. A registered combined charitable organization may offer a University employee the option of designating in writing that the amount deducted from the employee's pay for each pay period be designated to any charitable agency, whether or not the charitable agency receives funds from the single, annual consolidated effort. A registered combined charitable organization which offers this option shall provide a list of charitable agencies receiving funds and the amount each charitable agency receives in the annual report required pursuant to these guidelines.
- In order to participate in the University employee combined charitable campaign, a federated funding organization shall apply to the University Controller's Office as a registered combined charitable organization on or before March 1, 2002, for participation in the Fall 2002 campaign, and in 2003 and thereafter on or before March 1 in order to be eligible to participate in the campaign for that year.
- A federated funding organization which applies to the University Controller's Office shall provide the University Controller's Office with all information the Controller's Office deems necessary to identify the charitable and tax exempt status of the organization and its compliance with the provisions of these guidelines including, but not limited to the following:
(1) assurance of tax exempt status for the federated funding organization and each of the charitable agencies identified by the federated funding organization as an affiliated agency;
(2) an affidavit signed by a duly constituted officer of the federated funding organization attesting to the fact that the federated funding organization and its affiliated agencies are in compliance with each of the provisions of this section;
(3) a list of the board of directors for the federated funding organization which identifies the address for each director; and
(4) a fee of $100.
- A registered combined charitable organization shall disclose in its solicitation and its annual report filed under these guidelines:
(1) gross dollars received in contributions in the prior year;
(2) names of, business addresses, and the amount of money distributed to each affiliated charitable agency by the registered combined charitable organization;
(3) percentage of gross dollars contributed which was directly received by the charitable agencies;
(4) projected percentage of the contribution to be received by the charitable agencies in the year for which the solicitation is being made;
(5) if participating charitable agencies are required to pay any fees to the combined charitable organization, it shall also be disclosed in the solicitation and annual report;
(6) in the annual report, the combined charitable organization shall include a list of charitable agencies to which donors specifically designated funds and the amount designated to each agency.
- The combined charitable organization shall contribute to cover the costs associated with the provision of a payroll deduction card in the form approved by the University Controller's Office for each University employee on the campus where funds are being solicited.
- The combined charitable organization may, if a brochure is desired, either provide or pay the costs associated with the provision of a single brochure providing information about the combined charitable organization and its affiliated or related agencies, as defined in A.2.b. and d., after providing a copy of the brochure to the University Controller's Office.
- Information provided in the application to register the combined charitable organization as well as information provided by the combined charitable organization in the annual report required to be filed by these guidelines may be provided to University employees and other members of the public.
- The University Controller's Office shall register or not register the application of an organization within 75 days. No organization may apply to the University Controller's Office more than once in a calendar year. An organization whose application is denied has ten (10) calendar days after receiving notice of the denial to appeal the decision or file an amended application correcting the deficiency. The University Controller's Office shall register or not register the organization within ten (10) calendar days of the submission of the appeal. If the organization fails to, or is unable to correct the deficiency and registration is denied a second time, the organization may appeal within five (5) calendar days after being notified by the University Controller's Office that the deficiency has not been cured and the organization is not registered. A hearing shall be scheduled by the University Controller's Office and shall be held within 15 calendar days after receiving notice of the appeal. The hearing shall be conducted in a manner considered appropriate by the University Controller. The University Controller's determination following the hearing shall be made within seven (7) calendar days after the hearing has been completed.
- An organization whose application as a registered combined charitable organization is denied shall not be eligible to participate in the University employee combined charitable campaign for that year. Only organizations that are approved may participate in the University employee combined charitable campaign for the year of approval and only contributions authorized during the campaign may be deducted from an employee's pay pursuant to these guidelines.
- Related organization. No two federated funding campaigns that are related organizations, defined in A.2.d. above, may participate simultaneously in the University combined charitable campaign.
- The purposes of the University Employee Charitable Campaign are to:
- Annual Report.
- Every charitable organization that is required to file or that files a registration statement pursuant to these guidelines shall file an annual report on a form provided by the University Controller's Office with the University Controller on or before June 30 of each year if its books are kept on a calendar year basis, or within six months after the close of its fiscal year if its books are kept on a fiscal year basis. For good cause shown, the University Controller's office may extend the time for filing the annual report for a period not to exceed three months.
- 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. 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.
- The financial statement shall include a balance sheet, statement of income and expense, and statement of functional expenses, and shall be prepared in accordance with generally accepted accounting principles so as to make a full disclosure of the following, including necessary allocations among the items and the basis of such allocations:
- total receipts and total income from all sources;
- cost of management and general expenses;
- program services;
- cost of fund raising;
- cost of public education;
- funds or properties transferred out of state, with explanations as to recipient and purpose;
- total net amount disbursed or dedicated within Missouri, broken down into total amounts disbursed or dedicated for each major purpose, charitable or otherwise;
- names of professional fund raisers used during the accounting year and the financial compensation and profit resulting to each professional fund raiser; and
- a list of the five highest paid directors, officers, and employees of the organization and its related organizations as that term is defined in A.2.d. above, 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.
Unless otherwise required by these guidelines, 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.
- 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 B. 2., 3., and 5.
- Where a registration statement has been filed by a parent organization or affiliate, 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 apart 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 a 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 Missouri which raises or expends more than $25,000.
- 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 B.7. shall not be required to include in its annual report the financial statement described in subdivisions B.2. and 3. and notwithstanding subdivision B.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.
- Paragraph B.6. applies to an organization whose financial statement described in subdivisions B.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.
- A reregistration fee of $100 shall be paid by every charitable organization submitting the annual report required by these guidelines.