Administrative Code

Virginia Administrative Code
9/27/2022

Part II. Rules Governing Charitable and Civic Organizations

2VAC5-610-20. Initial registration.

A. Documentation required for registration. Except as provided in subsection B of this section, every charitable organization subject to registration, pursuant to § 57-49 of the Code of Virginia, shall file with the commissioner an initial registration statement on a form prescribed by the commissioner or the Unified Registration Statement, with all questions answered, with two signatures, and with all attachments required by Chapter 5 (§ 57-48 et seq.) of Title 57 of the Code of Virginia. The completed registration statement shall include the following attachments:

1. Fee. The appropriate fee in the amount prescribed in subsection E of § 57-49 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 annual income of the organization 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 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. 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. A copy of the organization's bylaws and any subsequent amendments to that document; and

7. Tax exemption. If the charitable organization is listed with the IRS as tax exempt, a copy of the IRS determination letter and any subsequent notifications of modification; if exempt status is pending, a copy of the completed IRS application form as filed with the IRS.

B. Consolidated or "joint" registration. A statewide or national charitable or civic organization may file a consolidated, or "joint," registration with the commissioner, as described in subsection B of § 57-49 of the Code of Virginia, on behalf of its local chapters, which shall not be considered complete unless accompanied by all supporting documentation specified in subsection A of this section, if:

1. The parent organization shares a group IRS exemption status with its chapters and all financial reporting is consolidated in the parent organization's IRS Form 990, Form 990-PF, or Form 990-EZ, or in its certified audited financial statements; if the organization's annual income qualifies the organization to file Form 990-N with the IRS, in its certified treasurer's report; or

2. Each chapter has its own separate IRS exemption status, but the organization's articles of incorporation or bylaws state that all financial matters are managed by the parent organization and all financial reporting is consolidated in the parent organization's IRS Form 990, Form 990-PF, or Form 990-EZ, or in its certified audited financial statements; if its annual income qualifies the organization to file Form 990-N with the IRS, in its certified treasurer's report.

C. Standard of reporting contributions. Every charitable organization subject to registration, pursuant to § 57-49 of the Code of Virginia, shall:

1. Report the gross contributions when the solicitation does not include goods or services;

2. Report as gross contributions the valuation of any goods or services solicited for resale. Such valuation shall be determined as prescribed in the American Institute of Certified Public Accountants standards for reporting donated goods and services;

3. Report the gross contributions when the solicitation includes the sale or donation of tickets for use by third parties, or when the goods or services sold are of nominal value; and

4. Report contributions, which may be for net contributions only, when received from special events including, but not limited to, dinners, dances, carnivals, raffles, and bingo games, when the goods or services offered are of more than nominal value in return for a payment higher than the direct cost of the goods or services provided.

Statutory Authority

§ 57-66 of the Code of Virginia.

Historical Notes

Derived from VR115-06-01 § 2, eff. March 14, 1991; amended, Virginia Register Volume 18, Issue 21, eff. August 1, 2002; Volume 32, Issue 3, eff. November 5, 2015.

2VAC5-610-30. Annual registration.

A. Documentation required for registration. Except as provided in subsection B of this section, every charitable organization subject to registration, pursuant to § 57-49 of the Code of Virginia, shall file with the commissioner an annual registration renewal on a form prescribed by the commissioner or the Unified Registration Statement, with all questions answered, with two signatures, and with all attachments required by Chapter 5 (§ 57-48 et seq.) of Title 57 of the Code of Virginia, on or before the 15th day of the fifth calendar month following the end of the organization's fiscal year. The completed registration statement shall include the following attachments:

1. Fee. The appropriate annual fee in the amount prescribed in subsection E of § 57-49 of the Code of Virginia, made payable to "Treasurer of Virginia";

2. Financial report. A copy of one of the following:

a. The completed IRS Form 990, Form 990-PF, or Form 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;

b. Certified audited financial statements for the past fiscal year; or

c. If the annual income of the organization qualifies the organization to file Form 990-N with the IRS, a certified treasurer's report for the past fiscal year;

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 by § 57-54 of the Code of Virginia;

5. Governing documents. If the organization is incorporated, a copy of any certificate of incorporation, any articles of incorporation, or amendments to these documents not previously filed with the commissioner: if unincorporated, any amendments to the governing documents not previously filed with the commissioner;

6. Bylaws. A copy of any bylaws or amendments to that document not previously filed with the commissioner; and

7. Tax exemption. If the organization is listed with the IRS as tax exempt, a copy of any IRS determination letter or subsequent notifications of modification not previously filed with the commissioner.

B. Consolidated, or "joint," registration. A statewide or national charitable or civic organization may file a consolidated, or "joint," registration with the commissioner, as described in subsection B of § 57-49 of the Code of Virginia, on behalf of its local chapters, which shall not be considered complete unless accompanied by all supporting documentation specified in subsection A of this section, if:

1. The parent organization shares a group IRS exemption status with its chapters and all financial reporting is consolidated in the parent organization's IRS Form 990, Form 990-PF, or Form 990-EZ, or in its certified audited financial statements; if the organization's annual income qualifies the organization to file Form 990-N with the IRS, in its certified treasurer's report; or

2. Each chapter has its own separate IRS exemption status, but the organization's articles of incorporation or bylaws state that all financial matters are managed by the parent organization and all financial reporting is consolidated in the parent organization's IRS Form 990, Form 990-PF, or Form 990-EZ, or in its certified audited financial statements; if its annual income qualifies the organization to file Form 990-N with the IRS, in its certified treasurer's report.

C. Standard of reporting contributions. Every charitable organization subject to registration, pursuant to § 57-49 of the Code of Virginia, shall:

1. Report the gross contributions when the solicitation does not include goods or services;

2. Report as gross contributions the valuation of any goods or services solicited for resale. Such valuation shall be determined as prescribed in the American Institute of Certified Public Accountants standards for reporting donated goods and services;

3. Report the gross contributions when the solicitation includes the sale or donation of tickets for use by third parties, or when the goods or services sold are of nominal value; and

4. Report contributions, which may be reported as the net contributions only, when received from special events including, but not limited to, dinners, dances, carnivals, raffles, and bingo games, when the goods or services offered are of more than nominal value in return for a payment higher than the direct cost of the goods or services provided.

D. Extension of time to file with the commissioner. Any charitable organization that cannot complete its registration renewal on or before the 15th day of the fifth calendar month following the end of the organization's fiscal year may request in writing, as provided in subsection E of § 57-49 of the Code of Virginia, an extension of time to file with the commissioner. Payment of fees is not required with such a request. Fees are due when the registration is filed. A charitable organization may request an extension of time to file with the commissioner, and an extension may be granted under the following conditions:

1. The charitable organization shall send a written request to the commissioner stating that the organization is requesting an extension of time to file with the commissioner its registration renewal. If the organization has requested, from the IRS, an extension of time to file its IRS Form 990, Form 990-PF, or Form 990-EZ, the organization may send to the commissioner a copy of the IRS extension request in lieu of the written request.

2. If no time period is specified in the written request for extension of time to file, the commissioner shall grant an extension of time to file of 90 days.

3. If the charitable organization is unable to complete its registration renewal within the time period granted by the commissioner in the extension of time to file, the charitable organization may request an additional extension of time to file.

4. In any case, the extension or total of all extensions requested from and granted by the commissioner shall be for no longer than six months after the 15th day of the fifth calendar month following the end of the organization's fiscal year.

5. The organization's registration shall lapse if the annual renewal is not filed by the 15th day of the fifth calendar month following the end of the organization's fiscal year and no extension of time to file is requested from and granted by the commissioner, or if the annual renewal is not filed by the end of the extension period granted. If the organization's registration lapses, the organization shall file an initial registration and pay the initial registration fee in addition to the annual registration fee, as prescribed by 2VAC5-610-20.

Statutory Authority

§ 57-66 of the Code of Virginia.

Historical Notes

Derived from VR115-06-01 § 3, eff. March 14, 1991; amended, Virginia Register Volume 18, Issue 21, eff. August 1, 2002; Volume 32, Issue 3, eff. November 5, 2015.

2VAC5-610-35. Disclosures required of charitable or civic organizations.

A. Primary name. The charitable or civic organization shall include in all solicitations the primary name under which it is registered with the commissioner.

B. Use of another charitable or civic organization's name in an appeal by a charitable or civic organization. Pursuant to subsection C of § 57-57 of the Code of Virginia, if the charitable or civic organization uses the name of another charitable or civic organization in its own solicitation, it shall submit a consent to solicit form, prescribed by the commissioner, for each charitable or civic organization named in its own solicitation.

C. Preprinted return addresses. Pursuant to subsection L of § 57-57 of the Code of Virginia, the preprinted address on any return envelope, prepared under the direction of the charitable or civic organization and provided to a potential donor, that is not addressed to the charitable or civic organization's own primary address, shall include the name of the business located at the address on the return envelope in the following format:

ABC Charity
c/o XYZ Company
111 Main Street (#)
City, ST Zip Code

The name on line two may be the name of the professional fund-raising counsel or solicitor, a third party caging company or bank, a commercial mail-receiving agency, or other receiver, but, in any case, must be the name of the company that actually resides at the preprinted address on the return envelope. This requirement does not apply to mail addressed to a United States Post Office box rented from the U.S. Postal Service.

Statutory Authority

§ 57-66 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 32, Issue 3, eff. November 5, 2015.

2VAC5-610-40. Exemption from annual registration.

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.

Statutory Authority

§ 57-66 of the Code of Virginia.

Historical Notes

Derived from VR115-06-01 § 4, eff. March 14, 1991; amended, Virginia Register Volume 18, Issue 21, eff. August 1, 2002; Volume 32, Issue 3, eff. November 5, 2015.

2VAC5-610-50. Discontinuance of solicitations in Virginia.

A. Ceasing solicitations. If a charitable or civic organization ceases to solicit contributions in Virginia, the charitable or civic organization shall notify the commissioner on or before the 15th day of the fifth month following the end of the organization's fiscal year and shall submit a copy of 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, or with certified audited financial statements for the past fiscal year, or 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. If the organization submits the IRS Form 990, 990-PF, or 990 EZ, 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.

B. Dissolution of a charitable or civic organization. Upon a charitable or civic organization's dissolution, the organization shall submit a copy of its certificate of dissolution and a statement showing the distribution of its funds. Such statement shall be a copy of the IRS Form 990, Form 990-PF, or Form 990-EZ with all schedules, as required by the IRS, except Schedule B, and with all attachments, as filed with the IRS upon dissolution, or certified audited financial statements, or if annual income qualifies the organization to file Form 990-N with the IRS, a certified treasurer's report, showing the distribution of its funds. If the organization submits the IRS Form 990, 990-PF, or 990 EZ, 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.

Statutory Authority

§ 57-66 of the Code of Virginia.

Historical Notes

Derived from VR115-06-01 § 5, eff. March 14, 1991; amended, Virginia Register Volume 18, Issue 21, eff. August 1, 2002; Volume 32, Issue 3, eff. November 5, 2015.

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