Senate Bill 2958

AN ACT TO AMEND SECTION 79-11-507, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF CONTRIBUTIONS WHICH CHARITABLE ORGANIZATIONS MAY RECEIVE IN ANY FISCAL YEAR BEFORE HAVING TO FILE CERTAIN FINANCIAL STATEMENTS WITH THE SECRETARY OF STATE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 79-11-507, Mississippi Code of 1972, is amended as follows:

79-11-507. (1) Every charitable organization registered pursuant to Section 79-11-503 which shall receive in any fiscal year contributions in excess of Two Hundred Fifty Thousand Dollars ($250,000.00), and every charitable organization whose fund-raising functions are not carried on solely by persons who are unpaid for such services shall file a financial report for its most recently completed fiscal year with the Secretary of State. Such financial report shall be filed along with the registration statement required by Section 79-11-503 and any renewals thereafter. Such financial report shall include a balance sheet and statement of income and expense and shall be consistent with forms furnished by the Secretary of State clearly setting forth the following: gross receipts and gross income from all sources, broken down into total receipts and income from each separate solicitation project or source; cost of administration; cost of solicitation; cost of programs designed to inform or educate the public; total net amount disbursed or dedicated for each major purpose, charitable or otherwise. The report shall be signed by the president or other authorized officer and the chief fiscal officer of the organization, and shall be accompanied by an opinion signed by an independent certified public accountant that the financial statement therein fairly represents the financial operations of the organization in sufficient detail to permit public evaluation of its operations. Such financial report shall be accompanied by any and all forms required to be filed by a charitable organization with the United States Internal Revenue Service.

(2) Every organization registered pursuant to Section 79-11-503 that shall receive in any fiscal year contributions not in excess of Two Hundred Fifty Thousand Dollars ($250,000.00) and all of whose fund-raising functions are carried on by persons who are unpaid for such services shall file a financial report along with the registration statement required by Section 79-11-503 and any renewals thereafter with the Secretary of State upon forms prescribed by him. Such financial report shall cover the most recently completed fiscal year and include such information as required by the Secretary of State by rule or otherwise, including, but not limited to, the gross receipts from contributions and the use of the proceeds of such contributions. The report shall be signed by the president or other authorized officer of the organization who shall certify under penalties of perjury that the statements therein are true and correct to the best of their knowledge. Such financial report shall be accompanied by any and all forms required to be filed by a charitable organization with the United States Internal Revenue Service.

(3) Any charitable organization receiving more than Twenty-five Thousand Dollars ($25,000.00) but less than Two Hundred Fifty Thousand Dollars ($250,000.00) shall, at the request of the Secretary of State, submit additional financial information, including, but not limited to, an audited financial statement prepared in accordance with generally accepted accounting principles and accompanied by an opinion signed by an independent certified public accountant that the financial statement therein fairly represents the financial operations of the organization in sufficient detail to permit public evaluation of its operations.

(4) The Secretary of State pursuant to Section 79-11-509 may impose an administrative penalty against any organization which fails to comply with subsection (1), (2) or (3) of this section within the time therein prescribed, or fails to furnish such additional information as is requested by the Secretary of State within the required time.

SECTION 2. This act shall take effect and be in force from and after July 1, 2006.