Virginia Law

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 years.

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 the 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.