chapter v charitable uses and purposes title 13 new york...

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Chapter V Charitable Uses and Purposes

Title 13 New York Code of Rules and Regulations

RULES AND REGULATIONS FOR REGISTRATIONOF CHARITABLE TRUSTEES, INCLUDING TRUSTS, ESTATES

NOT-FOR-PROFIT CORPORATIONS AND OTHER CHARITABLE TRUSTEEINCLUDING CHARITABLE ORGANIZATIONS

IN NEW YORK STATEPURSUANT TO ARTICLE 8 OF THE ESTATES, POWERS AND TRUSTS LAW

AND ARTICLE 7-A OF THE EXECUTIVE LAW

Part 90 - Definitions

90.1 Trustees

90.2 Charitable Organization

Part 91 REGISTRATION AND REPORTING BY TRUSTEES PURSUANT TO ARTICLE 8 OF THEESTATES, POWERS AND TRUSTS LAW

91.1 To Whom This Part Applies

91.2 Registration

91.3 Annual Financial Reports of Trustees

Part 92 Registration and Financial Reporting by Charitable Organizations Pursuant to Article 7-A of theExecutive Law


92.2 Registration and Re-Registration

92.3 Annual Financial Reports of Charitable Organizations

92.4 Cancellation of Registration

Part 93 Registration of and Financial Reporting by Trustees and Charitable Organizations Required to RegisterWith the Attorney General Pursuant to Both the Estates, Powers and Trusts Law and Article 7- A of theExecutive Law

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93.2 Registration



Part 94 Contents of Financial Reports Filed by Charitable Organizations

94.1 Definitions

94.2 Guidelines for Annual Financial Reports of Charitable Entities

Part 95 Registration of and Reporting by Professional Fund Raisers, Fund Raising Counsel and ProfessionalSolicitors


95.2 Registration

95.3 Registration Fees and Bonds Required of Professional Fund Raisers, Fund Raising Counsel andProfessional Solicitors.

95.4 Contracts with Professional Fund Raisers, Fund Raising Counsel and Commercial Co-Venturers.

95.5 Interim Statements and Closing Statements of Professional Fund Raisers

Part 96 Extension of Time to File Annual Financial Reports of Trustees and Charitable Organizations

96.1 Initial Request for Three Month Extension of Time to File Annual Financial Report

96.2 Requests for Further Extension of Time to File Annual Financial Reports

96.3 Acknowledgment of Mailed Requests for Extension of Time to File Annual Financial Reports

96.4 No Extension of Time to File Annual Financial Reports Shall be Granted to Registrants Delinquent inFiling Prior Annual Financial Reports

Part 97 Availability of Forms and Instructions

Part 98 Changes in Filed Documents and Information

Part 99 Identification of Filings

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Part 100 Documents Filed With the Attorney General are Subject to Public Inspection

100.1 Public Documents

100.2 Inspection of Public Documents

Part 101 Place of Filing

101.1 Trusts, Estates and Charitable Organizations

101.2 Professional Fund Raisers, Fund Raising Counsel and Professional Solicitors

Part 102 Exemption From Registration

Part 103 Administrative Enforcement by the Attorney General

103.1 Procedures Applicable to Administrative Proceedings Commenced by the Attorney General Pursuant toSection 177 of Article 7-A of the Executive Law.

103.2 Remedies in Attorney General’s Administrative Proceeding

103.3 Notice of Violation

103.4 Requests for Hearings

103.5 Notice of Hearing

103.6 Administrative Hearing Officers

103.7 Adjournments

103.8 Subpoenas

103.9 Conduct of the Hearing

103.10 Representation

103.11 Evidence

103.12 Record

103.13 Costs

103.14 Motions

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103.15 Findings of Fact

103.16 Time Periods

103.17 Final Determinations and Orders

103.18 Stay of the Decision or Order

103.19 Administrative Appeal from the Decision or Order

103.20 Judicial Appeal from the Final Administrative Determination

Part 104 Civil Enforcement by the Attorney General

Part 105 Criminal Enforcement by the Attorney General

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Part 90 - Definitions

90.1 Trustee

For the purposes of these regulations, trustee shall mean any individual or entity as defined in section 8-1.4(a)

of the Estates, Powers and Trusts Law (“EPTL”), holding and administering any property whatsoever for

charitable purposes, unless exempt from registration pursuant to EPTL section 8-1.4(b). The word “trustee”,

includes executors, administrators, c.t.a., testamentary and inter-vivos trustees as well as all other individuals,

groups of individuals, domestic and foreign not-for-profit corporations, unincorporated associations, trustees

and other legal entities organized for charitable purposes.

90.2 Charitable Organization

For the purposes of these rules and regulations, charitable organization shall mean any benevolent,

philanthropic, patriotic, or eleemosynary individual or entity or one purporting to be such or law enforcement

support organization as defined in section 171-a.11 of Article 7-A of the Executive Law that intends to solicit or

solicits contributions from New York State residents.

Part 91 REGISTRATION AND REPORTING BY TRUSTEES PURSUANT TO ARTICLE 8 OF THEESTATES, POWERS AND TRUSTS LAW


This part applies to any trustee as defined in Part 90. Executors and administrators, c.t.a. are not required to

register and file periodic reports if the only charitable disposition under the terms of the will is (i) of a specific

amount or specific property and (ii) made to a named federal income tax exempt organization. Executors and

administrators c.t.a. of estates and trustees of trusts in which the charitable interest is deferred because of prior

non-charitable interest shall, in any court action or proceeding relating to a construction of the governing

instrument, disposition or distribution of the assets of the estate or trust, or for an accounting, give prior notice

of such action or proceeding by service of process on the Attorney General.

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91.2 Registration

(a) When to Register. A trustee that is required to register with the Attorney General pursuant to section 8-1.4

of the EPTL shall register within six months after any property held by such trustee for charitable purposes, any

income therefrom required to be applied to charitable purposes and\or any other income received by such

trustee required to be applied to charitable purposes. If the trustee intends to solicit or is soliciting contributions

for charitable purposes as defined in sections 172-a (2) and (3) of the Executive Law, registration pursuant to

the Executive Law will, in most instances, also be required. Although only one registration form is required,

different filing requirements apply. See Part 92.

(b) Registration Forms and Documents

(1) A trustee required to register pursuant to section 8-1.4 of the EPTL shall file with the Attorney General:

(i) New York State registration form CHAR410 or the Unified Registration Statement (a similar form

adopted by New York and most other states that require registration of charities) for registrants created under a

certificate of incorporation or an instrument other than a will or trust agreement.

(ii) CHAR001 for registrants created under a will or trust agreement.

(iii) a copy of the will, trust agreement, certificate of incorporation, constitution or other organizational

instrument with all amendments and current by-laws;

(iv) copies of any financial reports required to be attached to the registration form.

(2) Registration forms shall include the following information:

(i) Testamentary and Inter-Vivos Trusts

(a) The name by which the trust is to be known.

(b) The name of the grantor or testator.

(c) The date that the trust or will was executed and the dates of all amendments and\or codicils.

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(d) The type of trust.

(e) The names and addresses of all beneficiaries.

(f) The date of death of any beneficiary whose death resulted in the vesting of a charitable interest.

(g) The month and day that the trust’s fiscal year ends.

(h) The name, mailing address and telephone number of the trust, or the name, mailing address and

telephone number of the primary individual, company, law firm, etc. that receives mail on behalf of the trust.

(i) A list of the assets and liabilities of the trust and the book value of each.

(j) The names and addresses of bank depositories, brokerage houses and any other institutions

holding assets of the trust and the account number of each account.

(k) A statement as to whether an application for tax exemption has been made to the Internal

Revenue Service and, if so, a copy of the Application for Recognition of Exemption and a copy of the

determination letter, if issued. If a favorable determination letter has not been issued, any documents from the

IRS requesting further information or denying tax exempt status and any other correspondence with the IRS

regarding the application, including a favorable determination, must be submitted be upon receipt.

(ii) Estates

(a) The name of the decedent.

(b) The date of death.

(c) The date on which and county in which the will was admitted to probate.

(d) The names and addresses of all estate fiduciaries.

(e) The name and address, including county, of the Surrogate’s Court.

(f) The Surrogate Court file number.

(g) The month and day the estate’s fiscal year ends.

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(h) The name, mailing address, fax, telephone number and e-mail address of the estate or the name,

mailing address, fax, telephone number and e-mail address of any individual, company, law firm, etc. that

receives mail on behalf of the estate.

(i) A copy of the list of assets form filed with the court under Uniform Rule 207.20, Section 2307-a

disclosures and any other disclosure of assets submitted to a court.

(j) The names and addresses of bank depositories, brokerage houses and any other institutions

holding assets of the estate and the account number of each account.

(k) Copies of the will, all codicils and the decree admitting the will to probate, IRS form 706 and

New York State form ET-90 must be attached to the registration form or filed immediately after filing with the

IRS or New York State Department of Taxation and Finance.

(iii) Trustees as defined in section 90.1, including individual trustees, directors or equivalent managers of

not-for-profit corporations, trusts and other legal entities holding and administering property for charitable

purposes:

(a) The name of the corporation, trust or other legal entity and all other names that it uses, including

but not limited to, names under which it conducts activities or solicits contributions.

(b) The principal address of the corporation, trust or other legal entity and its mailing address and

principal New York State address, if different.

(c) The address where the corporation’s, trust’s or other legal entity’s books and records are kept.

(d) Daytime telephone number, fax number, e-mail address and Internet site of the corporation, trust

or other legal entity.

(e) The date the corporation, trust or other legal entity’s fiscal year ends.

(f) The date and state in which its certificate or articles of incorporation or other organizational

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instrument was filed or otherwise became effective.

(g) The date on which the corporation, trust or other legal entity began holding assets and/or

conducting activities in New York State and/or began fundraising or other charitable activity in New York

State.

(h) A statement as to whether the corporation, trust or other legal entity previously registered with

the New York State Attorney General’s Charities Bureau and/or the New York State Secretary of State’s former

Office of Charities Registration and the date(s) on which such registration took place and the registration

number or numbers assigned.

(i) The names and addresses of any professional fund raisers, fund raising counsel and/or commercial

co-venturers authorized to act on behalf of the corporation, trust or other legal entity and the period of such

authorization.

(j) A statement as to whether an application for tax exemption has been made to the Internal Revenue

Service and, if so, a copy of the Application for Recognition of Exemption and a copy of the determination

letter, if issued. If a favorable determination letter has not been issued, any documents from the IRS requesting

further information or denying tax exempt status and any other correspondence with the IRS regarding the

application, including a favorable determination, must be submitted upon receipt.

(k) A description of the purposes of the corporation, trust or other legal entity.

(l) A description of all of the activities conducted and/or to be conducted in New York State by the

corporation, trust or other legal entity.

(m) A list of the names of all individual directors, officers, trustees or equivalent managers of the

corporation, trust or other legal entity, the primary residence or business address where each can be regularly

located, together with their titles and terms of office.

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(n) A list of the names and addresses of all chapters, branches and affiliates of the corporation, trust

or other legal entity.

(o) A list of the names and addresses of all nonprofit and/or for-profit legal entities, unless registered

and reporting to the Attorney General under either the Executive Law or the EPTL, which the corporation, trust

or other legal entity controls, is controlled by or is under common control with, including, without limitation,

through joint venture, common membership, governing boards, trustees or officers.

(p) A list of the names and addresses of all banks, broker\dealers, investment advisors and other

institutions in which the corporation, trust or other legal entity has accounts and the account numbers of all such

accounts and, if delegations have been made pursuant to section 514 of the Not-for-Profit Corporation Law, a

list of accounts to which they apply.

(q) A statement as to whether the corporation, trust or other legal entity will solicit contributions

from New York State residents and, if so, the purposes for which such contributions will be solicited.

(r) A statement as to whether the corporation, trust or other legal entity is authorized to solicit

contributions by any other state or local governmental agency and, if so, the names and addresses of each such

agency.

(s) A statement as to whether, in connection with the solicitation or administration of charitable

assets, the corporation, trust or other legal entity or any of its any of its individual directors, officers, trustees or

equivalent managers is or has been the subject of any disciplinary or legal action by any court or administrative

body or been found to have engaged in unlawful practices and, if so, a detailed explanation of each such

circumstance.

(t) A statement as to whether the corporation, trust or other legal entity’s registration or license has

ever been enjoined, suspended or revoked by any government agency and, if so, a detailed explanation of each

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such suspension and revocation.

(c) Signature of Registration Form. Registration forms shall be signed under penalties for perjury by the

president or other authorized officer or principal and the chief fiscal officer of the corporation, trust or other

legal entity. If there is only one such authorized individual, that individual must sign the registration form.

(d) Financial Reports of Delinquent Registrants. A trustee that was subject to the registration and reporting

requirements of section 8-1.4 of the EPTL for more than one year prior to the time of initial registration shall, at

the time of said registration, submit financial reports and filing fees for any of the prior six years during which

the trustee was subject to said registration and reporting requirements but failed to register and report as

required by that Article.

(e) Entities Previously Registered Pursuant to Article 7-A of the Executive Law. Notwithstanding the foregoing

paragraph, no additional registration documents are required of any corporation or other legal entity previously

registered and current in its annual financial filings pursuant to the Executive Law, provided that all required

Executive Law registration and filing fees have been paid, but any fees due pursuant to section 8-1.4 of the

EPTL must be paid to the Attorney General.

(f) Incomplete Registration Material. The Attorney General will not accept any registration unless all of the

documents and fees required by law and these regulations have been submitted and paid. Incomplete

registration material shall be returned by the Attorney General. The trustee shall not be in compliance with the

law and these regulations until the registration material has been accepted by the Attorney General.

91.3 Annual Financial Reports of Trustees

(a) When to be Filed. A trustee registered or required to register with the Attorney General pursuant to section

8-1.4 of the EPTL shall file with the Attorney General annual financial reports, signed under penalties for

perjury, within six months after the end of the trustee’s fiscal year.

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(b) Annual Financial Reports. Annual financial reports filed by trustees pursuant to section 8-1.4 of the EPTL

shall consist of the following:

(1) Estates

(i) a copy of:

(a) Internal Revenue Service fiduciary income tax return, or

(b) Judicial or informal estate accounting, or

(c) CHAR004 (New York State form for annual report of a charitable trust) and

(ii) CHAR003 (securities schedule) if the estate held securities during the reporting period.

(iii) A statement, signed under penalties for perjury, naming all current beneficiaries of the estate and

certifying that all reports required to be filed with the Attorney General pursuant to this subsection have been

provided to each such beneficiary on or before the date that the estate’s annual financial report is due to be filed

with the Attorney General pursuant to the EPTL.

(iv) A statement, signed under penalties for perjury, naming all beneficiaries who, due to the termination of

the interest of any party, have during the reporting period become eligible to receive any charitable assets of the

estate and\or income therefrom and certifying, under penalties for perjury, that all such beneficiaries have been

provided notice of such eligibility within three months of the date that such beneficiaries became eligible to

receive such assets and\or income.

(2) Trusts (other than those treated as private foundations and filing IRS Form 990PF):

(i) A copy of

(a) IRS Form 5227, or

(b) CHAR004, and

(ii) CHAR003 (securities schedule) if the trust held securities during the reporting period.

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(iii) A statement, signed under penalties for perjury, naming all beneficiaries who, due to the termination of

the interest of any party, have during the reporting period become eligible to receive any charitable assets or

income of the trust and\or income therefrom and certifying that all such beneficiaries have been provided notice

of such eligibility within three months of the date that such beneficiaries became eligible to receive such assets

or income.

(iv) A statement, signed under penalties for perjury, naming all current beneficiaries of the trust and

certifying that all reports required to be filed with the Attorney General pursuant to this subsection have been

provided to each such beneficiary on or before the date that the trust’s annual financial report is due to be filed

with the Attorney General pursuant to the EPTL.

(3) Public Charities

(i) copy of IRS Form 990 or 990EZ, including Schedules A and B and any other schedules or statements

required to be attached, and

(ii) CHAR003 (securities schedule) if the public charity held securities during the reporting period, and

(iii) a copy of the annual financial report, filed or required to be filed with the Internal Revenue Service, of

all nonprofit and/or for-profit legal entities, unless registered and reporting to the Attorney General under either

the Executive Law or the EPTL, which the corporation, trust or other legal entity controls, is controlled by or is

under common control with, including, without limitation, through joint venture, common membership,

governing boards, trustees or officers, unless any such related entity is registered and files an annual financial

report with the Attorney General pursuant to the Executive Law and\or the EPTL.

(4) Private Foundations (including trusts treated as such):

(i) copy of IRS Form 990PF, including Schedules A and B and any other schedules or statements required to

be attached, and

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(ii) CHAR003 (securities schedule) if the private foundation held securities during the reporting period, and





governing boards, trustees or officers.

(5) All other entities, including public charities with gross income less than $25,000 from whatever source

derived but with aggregate assets and gross income more than $25,000:

(i) copy of IRS 990, 990 PF or 990EZ, including Schedules A and B and any other schedules or statements

required to be attached, whether or not such report is required to be filed with the Internal Revenue Service (the

Attorney General has adopted the Form 990 in place of form CHAR002, which was formerly required of

registrants that do not file a Form 990 with the IRS), and

(ii) CHAR003 (securities schedule) if the registrant held securities during the reporting period and





governing boards, trustees or officers.

(c) The Attorney General will not accept any annual financial report unless all of the documents and fees

required by law and these regulations have been submitted and paid. Incomplete financial filings shall be

returned by the Attorney General. The trustee shall not be in compliance with the law and these regulations

until the annual financial filing has been accepted by the Attorney General.

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(d) Other Financial Information Required to Be Submitted.

(1) A trustee also subject to the registration and reporting requirements of the Executive Law may be

required to file other documents, including New York form CHAR497 (Annual Financial Report of Charitable

Organization).

(2) When requested by the Attorney General, any annual financial report shall be supplemented to include

such additional information as the Attorney General deems necessary to enable him to ascertain whether the

property under the supervision and\or control of the registrant is being properly administered.

(e) Certification of Annual Financial Reports.

(1) Trustees reporting on forms other than official forms of the Attorney General must attach to each annual

financial report the Attorney General's Certification Form (CHAR010), signed under penalties for perjury.

(2) Annual reports must be signed under penalties for perjury by at least two individual officers, directors,

trustees, executors, principals or other individuals authorized to manage and/or control the registrant’s assets

unless there is only one individual, in which case reports must be signed by that individual under penalties for

perjury. In the case of a corporation, its annual financial report shall be signed under the penalties for perjury

by the president (or a vice president) and the treasurer (or an assistant treasurer), except that in the case of a

banking institution, the annual financial report may be signed under penalties for perjury by a vice president.

Any documents submitted to the Attorney General in lieu of or to supplement the annual financial report shall

also be signed under penalties for perjury.

(f) Annual Report Filing Fees.

(1) A filing fee, based on the net worth of the assets at the end of the reporting period held by a trustee for

charitable purposes must accompany annual financial reports. The fees, pursuant to section 8-1.4(p) of the

EPTL, at the time of the promulgation of these regulations are as follows:

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(i) Twenty-five dollars, if the net worth of the property held by such trustee for charitable purposes is

less than fifty thousand dollars,

(ii) Fifty dollars if such net worth is fifty thousand dollars or more but less than two hundred and fifty

thousand dollars,

(iii) One hundred dollars if such net worth is two hundred and fifty thousand dollars or more but less

than one million dollars,

(iv) Two hundred fifty dollars if such net worth is one million dollars or more but less than ten

million dollars,

(v) Seven hundred and fifty dollars if such net worth is ten million dollars or more but less than fifty

million dollars, and

(vi) One thousand five hundred dollars if such net worth is fifty million dollars or more.

(2) No fee is required of trustees filing a Notice of Annual Filing Exemption. See subdivision (g) of this

section.

(3) For all registrants other than estates in administration and certain charitable trusts described below, net

worth shall be computed by taking the fair market value of the registrant’s assets, minus its liabilities, at the end

of the reporting period.

(4) The trustee of a charitable lead or annuity trust may compute net worth in accordance with subdivision

(f) of this section or may elect to determine net worth by following the valuation method prescribed under

section 7520 of the Internal Revenue Code and, in either case, must include a copy of its calculation with the

annual financial report and fee submitted to the Attorney General.

(5) For estates in administration subject to the registration and reporting requirements of Article 8 of the

EPTL, net assets shall mean the total of the fair market value of all assets distributed for charitable purposes

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during the reporting period plus those remaining to be distributed for charitable purposes at the end of the

reporting period.

(6) For a trust or estate which, upon termination of a non-charitable interest and by virtue of its governing

instrument, is required to hold or distribute income or all or part of its remaining assets for charitable purposes

and which consequently becomes subject to the registration and annual reporting requirements of Article 8 of

the EPTL, net assets shall mean the total of the fair market value of all assets distributed for charitable purposes

during the reporting period plus the fair market value of those remaining to be distributed for charitable

purposes at the end of the reporting period.

(g) Exemption From Filing Annual Financial Reports. Trustees otherwise required to register with the

Attorney General pursuant to section 8-1.4 of the EPTL whose total assets and income, in the aggregate, did not

exceed $25,000 at any time during the reporting period are exempt from the reporting requirements applicable

to that period. Such trustees shall, in lieu of an annual financial report, file with the Attorney General a Notice

of Annual Filing Exemption (CHAR006) signed under the penalties for perjury attesting that the entity did not

have total assets and income in excess of $25,000 at any time during the reporting period. CHAR006 shall be

filed within six months of the end of the calendar year or the registrant's fiscal year. Any CHAR006 that fails to

contain the required signature is incomplete and may subject the registrant to all appropriate sanctions, pursuant

to section 8-1.4 of the EPTL, for failure to file an annual report.

Part 92 Registration and Financial Reporting by Charitable Organizations Pursuant to Article 7-A of theExecutive Law


This part applies to any charitable organization, as defined in sections 171-a and 172.1 of the Executive Law,

unless exempt from registration pursuant to sections 172-a(1) or (2) of the Executive Law. Any charitable

organization defined in section 172-a(2)(g) of the Executive Law shall be exempt from registration if it files

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with the state education department, or with an agency with similar jurisdiction in another state, an annual

financial report substantially similar to the report required by section 172-b of the Executive Law.

92.2 Registration and Re-Registration

(a) When to Register. Charitable organizations required to register with the Attorney General pursuant to the

Executive Law shall register prior to commencing any solicitation of contributions for charitable purposes in

the State of New York or from New York State residents.

(b) Registration Form. In addition to the organizational documents described in subdivision (c) of this section,

a charitable organization required to be registered pursuant to section 172 of the Executive Law shall file with

the Attorney General form CHAR410 or the multi-state Unified Registration Statement. The registration form

shall include the following:

(1) The organization’s name and all other names under which it solicits or plans to solicit contributions.

(2) The principal street address of the organization and its mailing address and principal New York State

address, if different.

(3) The address where the organization’s books and records are kept.

(4) Daytime telephone number, fax number, e-mail address and Internet site of the organization.

(5) The day and month the organization’s fiscal year ends.

(6) The date and state in which incorporated, if applicable.

(7) The date on which the organization began or plans to begin doing business in New York.

(8) The date on which the organization began or plans to begin soliciting contributions from New Yorkers.

(9) The date on which the organization began maintaining assets in New York.

(10) A statement as to whether the organization previously registered with the New York State Attorney

General’s Charities Bureau and/or the New York State Secretary of State’s former Office of Charities

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Registration and the date on which such registration took place and the registration number or numbers

assigned.

(11) The names and addresses of any Professional Fund Raisers, Fund Raising Counsel and/or Commercial

Co-venturers authorized to act on behalf of the organization and the period of such authorization.

(12) A statement as to whether an application for tax exemption has been made to the Internal Revenue

Service and, if so, a copy of the Application for Recognition of Exemption and a copy of the determination

letter, if issued. If a favorable determination letter has not been issued, any documents from the IRS requesting

further information or denying tax exempt status and any other correspondence with the IRS regarding the

application, including a favorable determination, must be submitted upon receipt.

(13) A statement as to whether the IRS has ever denied or revoked tax exemption and, if so, a copy of any

determination letter and any other correspondence with the IRS regarding such denial or revocation must be

attached.

(14) A description of the purposes of the organization and\or joint ventures.

(15) A list of the names and addresses of all nonprofit and/or for-profit legal entities which the charitable

organization controls, is controlled by or is under common control with, including, without limitation, through

joint venture, common membership, governing boards, trustees or officers.

(16) A list of the names and addresses of all banks, broker\dealers investment advisors and other institutions

in which the charitable organization has accounts and the account numbers of all such accounts.

(17) A list of the names and the primary residence or business address where each can be regularly located

of all individual directors, officers, trustees or equivalent managers of the charitable organization, together with

their titles and terms of office.

(18) A list of the names and addresses of all chapters, branches and affiliates of the charitable organization.

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(19) A statement as to whether the charitable organization will solicit contributions from New York State

residents and, if so, the purposes for which such contributions will be solicited.

(20) A statement as to whether the charitable organization is authorized to solicit contributions by any state

or local governmental agency and, if so, the names and addresses of each such agency.

(21) A statement as to whether, in connection with the solicitation or administration of charitable assets, the

charitable organization or any of its individual officers, directors, executive personnel or trustees is or has been

the subject of any disciplinary or legal action by any court or administrative body or been found to have

engaged in unlawful practices in connection with the solicitation or administration of charitable assets and, if

so, a detailed explanation of each such circumstance.

(22) A statement as to whether the organization’s registration or license has ever been suspended or revoked

by any government agency and, if so, a detailed explanation of each such suspension and revocation.

(c) Attachments to Registration Forms. Registration forms must be accompanied by the following documents:

(1) Certificate of Incorporation or other organizational document and all amendments or other changes.

(2) Documentation of federal income status, including a copy of the registrant’s application for exemption

from federal income tax.

(3) All required financial reports and all applicable filing fees.

(4) A $25.00 registration fee payable to "New York State Department of Law.”

(5) If any of the documents described in (2) immediately above is not available, a statement, signed under

penalties for perjury by an authorized officer or director of the registrant, explaining why a such document is

not available and describing the efforts made to locate such document.

(d) Initial Financial reports. For the calendar or fiscal year immediately preceding the date of registration, a

charitable organization must file with the registration form (CHAR410 or the Unified Registration Statement),

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an IRS Form 990 or 990EZ, including Schedules A and B, or 990 PF, including Schedule B, and any other

schedules or statements required to be attached, whether or not such forms are required to be filed with the

Internal Revenue Service (the Attorney General has adopted the Form 990 in place of form CHAR002, which

was formerly required of registrants that do not file a Form 990 with the IRS), and a copy of the financial

report, filed or required to be filed with the Internal Revenue Service, of all nonprofit and/or for-profit legal

entities, unless registered and reporting to the Attorney General under either the Executive Law or the EPTL,

which the charitable organization controls, is controlled by or is under common control with, including, without

limitation, through joint venture, common membership, governing boards, trustees or officers, provided,

however, that an initial report need not be filed until the date on which such filing would be due to be filed by a

registered entity. Pursuant to New York Public Officers Law § 89(2) and EPTL § 8-1.4(1) a Schedule B filed

by an entity other than a private foundation is not subject to public disclosure except as may be required by

compulsory or other legal process.

(e) Initial Financial Reports of Delinquent Registrants. At the time of registration, a charitable organization

that was subject to the registration and reporting requirements of the Executive Law for more than one year

prior to the time of registration must submit financial reports and filing fees for any of the prior six years during

which the charitable organization was subject to the registration and reporting requirements of the Article 7-A

of the Executive Law but failed to register and report as required by that Article.

(f) Re-registration. Any charitable organization whose registration which has failed to file an annual report on

or before the date on which such report is due to be filed pursuant to the Executive Law, or whose registration

was previously canceled, must re-register with the Attorney General by submitting the following:

(1) Charities Re-Registration Statement (CHAR410-R)

(2) All items required to be attached to the Re-Registration Statement (CHAR410-R), including

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(i) all amendments or other changes to Certificate of Incorporation or other organizational document since

last registration;

(ii) Certificate of Good Standing from the home jurisdiction, if incorporated outside New York State;

(iii) documentation of any change in federal income tax exemption;

(iv) all required financial reports and all applicable filing fees.

(g) Incomplete Registration Material. No registration or re-registration shall be accepted by the Attorney

General unless all of the documents and fees required by this part have been submitted. Incomplete registration

or re-registration material shall be returned to such entities by the Attorney General and such entities shall not

be in compliance with this part until all registration material has been submitted and may be subject to

appropriate sanctions pursuant to the Executive Law.

(h) Registration and Re-registration Fees.

(1) Registration Fee. A fee of $25.00 must accompany each Registration Form (CHAR410 or Unified

Registration Statement).

(2) Re-registration Fee. A re-registration fee of $150.00 must accompany each Charities Re-Registration

Statement (CHAR410-R).

(i) Entities Registered Pursuant to Section 8-1.4 of the EPTL. No additional registration documents are

required of any entity previously registered and current in its annual financial filings pursuant to the EPTL,

provided that the Executive Law registration fee and all documents described in this part have been filed and

all applicable filing fees described in these regulations have been paid.


(a) When to be filed. Charitable organizations registered pursuant to Article 7-A of the Executive Law shall file

with the Attorney General, within four and one-half months after the end of the registrant’s fiscal year, all

23

annual financial reports required pursuant to section 172-b of the Executive Law.

(b) Annual Financial Report. Annual financial reports filed by charitable organizations registered pursuant to

the Executive Law shall be prepared pursuant to the specific requirements contained in section 172-b and shall

include the following (for contents of consolidated reports see section (d) below):

(1) Form CHAR497, and

(2) IRS Form 990, 990EZ, or 990PF, including Schedules A and B and any other schedules or statements

required to be attached, whether or not the registrant files such forms with the IRS, and

(3) Accountant's review or audit if required based on income thresholds set forth in section 172-b of the

Executive Law, and

(4) A copy of the annual financial report, filed or required to be filed with the Internal Revenue Service, of


the Executive Law or the EPTL, which charitable organization, controls, is controlled by, or is under control

with, including, without limitation, through joint venture, common membership, governing boards, trustees or

officers.

(c) Authorization to File a Combined Annual Financial Report. Upon prior written authorization of an

individual designated by the Assistant Attorney General-in-Charge of the Charities Bureau of the Office of the

Attorney General, a parent charitable organization which has one or more affiliates may file a combined annual

financial report for itself and its affiliates. Affiliates that do not have a parent-subsidiary relationship cannot

file a combined report. For this purpose "affiliate" shall include any chapter, branch, auxiliary or other

subordinate unit of any registered charitable organization, however designed, whose policies, fund-raising

activities and expenditures are supervised or controlled by the parent charitable organization. The Charities

Bureau, in its discretion, may deny a request to file a combined report by the parent organization if any of the

24

following facts are present:

(1) The parent organization does not file a group return for its subordinate organizations with the United

States Internal Revenue Service ("IRS").

(2) The parent organization and its affiliates do not consolidate their audited financial statements.

(3) The parent organization has one or more affiliates that are not included in the group return and/or

consolidated financial statements.

(4) The parent organization has one or more affiliates that are registered and file separately with the

Charities Bureau and, therefore, would not be included in the combined report.

(5) The parent organization and its affiliates have different fiscal years

(d) Contents of Consolidated Report. A consolidated financial report shall include

(1) A consolidated financial statement, including an independent certified public accountant’s audit or

review report based on the income thresholds set forth in section 172-b of the Executive Law, prepared in

accordance with Generally Accepted Accounting Principles ("GAAP").

(2) For each charitable organization whose financial activities are included in an audited or reviewed

financial statement prepared on a consolidated basis, the following supplemental schedules must be submitted:

(i) Statement of financial position for each consolidated entity,

(ii) Statement of activities for each consolidated entity, and

(iii) Consolidating adjustments.

(3) A copy of the letter from the Attorney General authorizing use of CHAR497-C.

(4) A copy of the annual financial report, filed or required to be file with the Internal Revenue Service, of all

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nonprofit and/or for-profit legal entities, unless registered and reporting to the Attorney General under either the

Executive Law or the EPTL, which the organization controls, is controlled by or is under common control with

is related, including, without limitation, through joint venture, common membership, governing boards, trustees

or officers.

(e) Certification of Annual Financial Reports.

(1) Charitable organizations that report on official forms of the Attorney General must sign the statement

printed on those forms under penalties for perjury. Trustees reporting on forms other than official forms of the

Attorney General must attach to each annual financial report the Attorney General's Certification Form

(CHAR010), signed under penalties for perjury.

(2) The annual financial report shall be signed under penalties for perjury by the president (or a vice

president) and the treasurer (or an assistant treasurer) of the charitable organization. Any documents prepared

by the charitable organization and filed with the Attorney General in lieu of or to supplement the annual

financial report shall be certified in a like manner.

(f) Annual Report Filing Fees. Annual financial reports submitted pursuant to section 172-b of the Executive

Law must be accompanied by the filing fee prescribed by that section. All payments must be made by check or

money order, payable to "New York State Department of Law.” Registrants should consult section 172-b of the

Executive Law for the fee schedule.

(g) Exemption From Filing Annual Financial Reports.

(1) Except as provided in subparagraph (2) immediately below, during any reporting period that a registered

charitable organization would have been exempt from registration with the Attorney General pursuant to section

172-a of the Executive Law, the charitable organization may, in lieu of filing an annual financial report, file

26

with the Attorney General a Notice of Annual Filing Exemption (CHAR006). CHAR006 shall be filed within

four and one-half months after end of the charitable organization’s fiscal year. The previous sentence

notwithstanding, a charitable organization also required to register pursuant to section 8-1.4 of the EPTL must

file an annual financial report if the aggregate of its assets and income exceeded $25,000 at any time during the

calendar or the charitable organization’s fiscal year. Any CHAR006 that fails to contain the required signature

shall be incomplete and may subject the registrant to appropriate sanctions pursuant to Article 7-A of the

Executive Law.

(2) In lieu of filing CHAR006, any registered charitable organization claiming exemption from registration

with the Attorney General pursuant to section 172-a of the Executive Law may file, under penalties for perjury,

a written request to withdraw its registration with an explanation of the basis for such request. Such request

shall be signed by the president (or a vice president) and the treasurer (or an assistant treasurer) of the charitable

organization.


Any charitable organization subject to this part that has failed to file an annual financial report pursuant to

section 172-b of the Executive Law or whose registration has been canceled pursuant to section 172-b.5 of the

Executive Law shall be prohibited from soliciting contributions in the State of New York until it has re-

registered pursuant to Article 7-A of the Executive Law, regardless of its registration status pursuant to section

8-1.4 of the Estates, Powers and Trusts Law.

Part 93 Registration of and Financial Reporting by Trustees and Charitable Organizations Required to RegisterWith the Attorney General Pursuant to Both the Estates, Powers and Trusts Law and Article 7- A of theExecutive Law


27

This part applies to trustees and charitable organizations that are required to register with the Attorney General

pursuant to both Article 7-A of the Executive Law and section 8-1.4 of the Estates, Powers and Trusts Law.

93.2 Registration

(a) When to Register. Trustees and charitable organizations subject to this part shall register with the Attorney

General prior to conducting any solicitation in the State of New York or within six months of holding or

administering assets of any kind for charitable purposes, whichever is earlier.

(b) Registration Forms. Trustees and charitable organizations subject to this part shall file form CHAR410 or

the multi-state Unified Registration Statement (a similar form adopted by New York and most other states that

require registration of charities) and copies of the documents required to be annexed to those forms.

(c) Signature of Registration Form. Registration forms shall be signed under penalties for perjury by the

president or other authorized officer or principal and the chief fiscal officer of the corporation, trust or other

legal entity. If there is only one such authorized individual, that individual must sign the registration form.

(d) Registration Fees. Any charitable organization required to register with the Attorney General pursuant to

both Article 7-A of the Executive Law and section 8-1.4 of the Estates, Powers and Trust Law shall pay the

$25.00 registration fee required to be paid pursuant to Article 7-A of the Executive Law.

(e) Incomplete Registration Material

The Attorney General will not accept any registration unless all of the documents and fees required by law and

these regulations have been submitted and paid, respectively. Incomplete registration material shall be returned

by the Attorney General and may be subject to sanctions pursuant to section 8-1.4 of the Estates, Powers and

Trusts Law and Article 7-A of the Executive Law. The charitable organization shall not be in compliance with

the law and these regulations until the registration material has been accepted by the Attorney General.

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93.3 Annual Financial Reports of Trustees and Charitable Organizations

(a) Annual Financial Reports. Trustees and charitable organizations subject to this part shall, within four and

one-half months after the end of the registrant’s fiscal year, file all financial reports and the certification

(CHAR010) required to be filed by entities that register pursuant to Article 7-A of the Executive Law and a

securities schedule (CHAR003), if applicable.

(b) Annual Report Filing Fees. Any trustee or charitable organization required to register with the Attorney

General pursuant to both the Executive Law and the Estates, Powers and Trusts Law shall pay the fees

mandated by both the Executive Law and the Estates, Powers and Trusts Law.

(c) Late fees. Any annual report filed by a trustee or charitable organization after the prescribed filing deadline

shall be accompanied by a late fee of fifty dollars for each month or part thereof that has elapsed since such

prescribed filing deadline.

(d) Exemption From Filing Annual Financial Reports. Any trustee or charitable organization required to

register with the Attorney General pursuant to both Article 7-A of the Executive Law and section 8-1.4 of the

Estates, Powers and Trusts Law may file a completed Notice of Annual Filing Exemption (CHAR006) only if it

qualifies for both exemptions from filing described in Parts 2 and 3.


Any charitable organization subject to this part that has failed to file an annual financial report pursuant to

section 172-b(5) of the Executive Law or whose registration has been canceled pursuant to section 172-b(5) of

the Executive Law shall be prohibited from soliciting contributions in the State of New York until it has re-

registered pursuant to Article 7-A of the Executive Law, regardless of its registration status pursuant to section

8-1.4 of the Estates, Powers and Trusts Law.

29

Part 94 Contents of Financial Reports Filed by Charitable Organizations

94.1 Definitions

(a) In addition to those terms defined in the Internal Revenue Service’s Instructions for IRS Forms 990, 990EZ

and 990 PF, the following words and phrases shall mean the following:

(1) Books and Records shall include, but not be limited to

(i) general ledger and journal;

(ii) cash receipts and disbursement journals;

(iii) payroll register and earnings records;

(iv) voucher register;

(v) sales and purchase journals where applicable;

(vi) purchase requisitions, purchase orders, invoices and receiving reports;

(vii) deposit slips and receipts;

(viii) bank statements, checkbooks, canceled checks, and savings bank pass books;

(ix) time records;

(x) schedules substantiating expense allocations and

(xi) computer databases.

(2) Depreciation and/or Amortization. A system of accounting which aims to distribute the cost or other basic

value of tangible capital assets, less salvage (if any), over the estimated life of the unit in a systematic and

rational manner. It is a process of allocation, not of valuation. Depreciation for the year is the portion of the

30

total charge under such a system that is allocated to the year. Although the allocation may properly take into

account occurrences during the year, it is not intended to be a measurement of the effect of all such occurrences.

(3) Endowment Fund. The fund or funds consisting of the principal amount of contributions, gifts and bequests

accepted with the donor's stipulation that the principal be maintained intact in perpetuity or until the occurrence

of a specified event or for a specified period, and that only the income from investment thereof be expended

whether for general purposes of the charitable organizations or for purposes specified by the donor.

(4) Multi-purpose Activity. An informational effort that includes an appeal for financial support or that is

designed to elicit such support.

(5) Net Worth.

(i) In the case of a charitable organization net worth shall constitute the fair market value of the net assets

held by such trustee for charitable purposes at the end of the reporting period.

(i) In the case of a charitable lead trust net worth shall constitute the total amount payable for charitable

purposes, discounted to the present value at the end of the reporting period for which an annual report is

submitted to the Attorney General.

(iii) In the case of states in administration subject to the registration and reporting requirements pursuant to

Article 8 of the Estates, Powers and Trusts Law net worth shall constitute the total of the fair market value of all

assets distributed for charitable purposes during the reporting period and remaining to be distributed for

charitable purposes at the end of the reporting period.

(iv) In the case of trusts or estates subject to the registration and reporting requirements of Article 8 of the

Estates, Powers & Trusts Law which upon the termination of an intervening contingency or non-charitable

interest and by virtue of their governing instruments are then required to hold or distribute all or part of their

31

remaining assets for charitable purposes net worth shall constitute the total of the fair market value of all assets

distributed for charitable purposes during the reporting period and remaining to be distributed for charitable

purposes at the end of the reporting period.

94.2 Guidelines for Annual Financial Reports of Charitable Entities

(a) Standards to be Followed in Preparation of Financial Reports.

(1) All annual financial reports filed by trustees and charitable organizations shall be prepared in accordance

with the classification and standards of reporting prescribed in these rules and regulations and annual financial

reports shall be in conformity with generally accepted accounting principles (GAAP). GAAP includes

compliance with all pronouncements of the Financial Accounting Standards Board and the American Institute

of Certified Public Accountants that establish accounting principles relevant to not-for-profit organizations.

(2) Charitable organizations, including private foundations and trusts, shall apply the definitions and

instructions prepared by the Internal Revenue Service when completing Forms 990, 990EZ and 990PF.

(3) Organizations that include in program services expenses any joint costs from a combined informational

and/or educational campaign and solicitation of contributions must disclose how the joint costs are allocated

between program service, management and general and fundraising expenses.

(b) Schedules of Information Concerning Professional Fund Raisers, Fund Raising Counsel and CommercialCo-Venturers.

(1) In addition to any other financial reports required to be filed, all charitable organizations required to

register with the Attorney General pursuant to Article 7-A of the Executive Law shall file a schedule, setting

forth the information required herein concerning any contracts with professional fund raisers, fund raising

counsel or commercial co-venturer engaged to conduct fundraising activities on behalf of each such

32

organization. For each contract entered into or effective during the reporting period, such schedule shall

include the following:

(i) The name, address and telephone number of the professional fund raiser, fund raising counsel or

commercial co-venturer which has acted or is acting on behalf of the charitable organization.

(ii) The period covered by the contract.

(iii) Whether or not the contract was reviewed and approved by the charity’s governing body.

(iv) How many bids were reviewed by the charity’s governing body prior to engaging the professional fund

raiser.

(v) A description of the campaign, sale, event and/or services conducted by the professional fund raiser,

fund raising counsel or commercial co-venturer.

(vi) Whether the contract provides for solicitations of new contributors or those who have previously

contributed to the charity.

(vii) The amount of all payments received by a professional fund raiser, all fund raising expenses of the

organization and/or professional fund raiser, the total expenses and the net proceeds to the charitable

organization.

(viii) The amount of all payments to the fund raising counsel.

(ix) A brief description of the terms and conditions of all contracts between the charitable organization and

any commercial co-venturer.

(x) A statement as to whether the charitable organization has received an accounting from any commercial

co-venturer required to provide such an accounting pursuant to section 173-a(3) of Article 7-A of the Executive

Law.

33

(xi) A statement of gross contributions received as of the date of the interim or closing statement.

(xii) A statement of all uncollected pledges as of the date of the interim or closing statement.

(c) Acceptability of Other Reports.

If an organization is required to file an annual report with another governmental agency, the Attorney General,

in his discretion, may accept a copy of such report, or a portion thereof, in lieu of all or a part of the annual

report required to be filed pursuant to these rules and regulations if the report, or the portion thereof, complies

with the requirements herein. No such report shall be accepted unless the registrant has received prior written

approval of the Assistant Attorney General-in-Charge, Charities Bureau, New York State Department of Law

for its submission.

Part 95 Registration of and Reporting by Professional Fund Raisers, Fund Raising Counsel and ProfessionalSolicitors


This part applies to professional fund raisers, fund raising counsel, professional solicitors and commercial co-

venturers, as defined in section 171-a(4) of the Executive Law, provided, however, that this part shall not apply

to any individual or entity that prints, prepares for mailing and/or mails solicitation material but does not

otherwise provide advice to or solicit on behalf of a charitable organization.

95.2 Registration

(a) When to Register. Professional fund raisers, fund raising counsel and professional solicitors must register

with the Attorney General prior to engaging in any fundraising activities in the State of New York and/or

solicitation of persons in New York State.

(b) Registration Forms.

34

(1) Professional Fund Raisers. Professional fund raisers shall file with the Attorney General a professional

fund raiser’s registration form signed under penalties for perjury and all documents required to be annexed

thereto. Such form shall include the following information:

(i) The full legal name of the professional fund raiser and all other legally authorized names under which it

operates in any capacity.

(ii) Organizational type (corporation, partnership, unincorporated association, proprietorship, etc.)

(iii) The date, state and county in which organized.

(iv) The principal New York State address of the professional fund raiser and all addresses from which it

solicits contributions from New York State residents and the telephone number at each address.

(v) The names, primary residence or business address where each can be regularly located, title or

relationship to the professional fund raiser of:

(a) Individual owners of unincorporated associations and proprietorships,

(b) Partners,

(c) Corporate officers and directors, and

(d) Comparable managers of the legal entities.

(vi) The names and primary residence or business address where each can be regularly located of any

individual or entity that owns ten percent or more of the professional fund raiser.

(vii) As required by section 5 of the New York State Tax Law, the federal tax identification number or

individual Social Security number for each entity or individual listed pursuant to subparagraph (a). Tax

identification numbers and Social Security numbers are exempt from disclosure to the public but must be

provided to the Attorney General pursuant to the Tax Law.

35

(viii) The names and addresses of each charitable organization with which the professional fund raiser has

contracts or has contracted within the prior twelve months to act as a professional fund raiser or fund raising

counsel in New York and the dates and a description of activities to be or that have been conducted pursuant to

such contracts.

(ix) A statement as to whether any individual listed pursuant to subparagraph (a) is or has been an officer,

director or employee of any other professional fund raiser or fund raising counsel that has engaged in fund

raising activities in New York and/or is or has been an officer, director or employee of any charitable

organization that has engaged in fund raising activities in New York and, if so, the names and primary residence

or business addresses of such individuals where they can be regularly located and the entities with which they

are or have been associated and the titles of all such individuals.

(x) A statement as to whether the professional fund raiser is registered with any other state or local

governmental agency and, if so, the names of such governmental agencies. is registered with any other state or

local governmental agency and, if so, the each such governmental agency.

(xi) A statement as to whether the professional fund raiser has ever had any license, registration or permit to

engage in fund raising activities denied, canceled, suspended or revoked and, if so, a detailed description of

such circumstances.

(xii) A statement as to whether any disciplinary or legal action in connection with fund raising activities has

been taken or is pending against the professional fund raiser and, if so, a detailed description of such action.

(xiii) A statement as to whether the professional fund raiser employs any professional solicitors.

(2) Fund Raising Counsel. Fund rasing counsel shall file with the Attorney General a fund raising counsel

registration form, signed under penalties for perjury, and all documents required to be annexed thereto. Such

36

form shall include the following information:

(i) The full legal name of the fund raising counsel and all other legally authorized names under which it

operates in any capacity.

(ii) Organizational type (corporation, partnership, unincorporated association, proprietorship, etc.)

(iii) The date, state and county in which organized.

(iv) The principal address of the fund raising counsel, the principal New York State address and the

telephone number at each address.

(v) The names and primary residence or business address where each can be regularly located title or

relationship to the fund raising counsel of:

(a) Individual owners of unincorporated associations and proprietorships,

(b) Partners,

(c) Corporate officers and directors, and

(d) Comparable managers of the legal entities.

(vi) The names and primary residence or business address where each can be regularly located of any

individual or entity that owns ten percent or more of the fund raising counsel.

(vii) As required by section 5 of the New York State Tax Law, the federal tax identification number

or individual Social Security number for each entity or individual listed pursuant to subparagraph (a). Tax

identification numbers and Social Security numbers are exempt from disclosure to the public but must be

provided to the Attorney General pursuant to the Tax Law.

(viii) The names and addresses of charitable or other organizations with which the fund raising counsel has

contracts or has contracted within the prior twelve months to act as a fund raising counsel for organizations

37

soliciting contributions in New York and the dates and a description of activities to be or that have been

conducted pursuant to such contracts.

(ix) A statement as to whether any individual listed pursuant to subparagraph (e) has been or is associated

with any professional fund raiser, fund raising counsel and/or charitable organization and, if so, the names and

primary residence or business address where each can be regularly located and the entities and the titles of all

such individuals.

(x) A statement as to whether the fund raising counsel is registered with any other state or local

governmental agency and, if so, the names of such governmental agencies. is registered with any other state or

local governmental agency and, if so, the each such governmental agency.

(xi) A statement as to whether the fund raising counsel has ever had and licence, registration or permit

denied, canceled, suspended or revoked and, if so, a detailed description of such circumstances.

(xii) A statement as to whether any disciplinary of legal action has been taken or is pending against the fund

raising counsel and, if so, a detailed description of such action.

(xiii) A statement as to whether the fund raising counsel or any of its representatives is authorized to solicit

contributions.

(xiv) A statement as to whether the fund raising counsel or any of its representatives is authorized to pay

expenses associated with a solicitation.

(xv) A statement as to whether the fund raising counsel or any representatives has access to contributions or

other receipts from a solicitation. “Access to contributions” shall mean the physical control, handling or

possession of any cash or legal instrument, regardless of to whom payable, if such cash or legal instrument

constitutes a contribution or donation. Access to contributions occurs when there is any signature authority

38

over an escrow account or bank account in which contributions or donations have been or will be deposited

and/or authorization to approve or pay expenses.

(xvi) A statement as to whether the fund raising counsel employs any professional solicitors.

(3) Professional Solicitors. Professional solicitors shall file with the Attorney General a professional

solicitor registration form, signed under penalties for perjury, and all documents required to be annexed thereto.

Such form shall include the following information

(i) The full legal name of the professional solicitor by which her or she shall solicit contributions and

any other names by which the solicitor is known.

(ii) The primary residence or business address where the solicitor can be regularly located the

solicitor’s telephone numbers.

(iii) With regard to all past and present employment as a professional fund raiser, fund raising

counsel and/or professional solicitor, the names and addresses of all such employers, the dates of employment

and the terms of remuneration.

(iv) The Social Security number of the solicitor. Social Security numbers are exempt from disclosure

to the public, except as may be required by compulsory or other legal process, but must be provided to the

Attorney General pursuant to the Tax Law.

(v) A statement as to whether the solicitor is registered with any other state or local governmental

agency and, if so, the each such governmental agency. is registered with any other state or local government

and, if so, the names of such governmental entities.

(vi) A statement as to whether the solicitor has ever had any licence, registration or permit to solicit

contributions denied, canceled, suspended or revoked and, if so, a detailed description of such circumstances.

39

(vii) A statement as to whether any disciplinary of legal action has been taken or is pending against

the solicitor and, if so, a detailed description of such action.

(c) Incomplete Registration Material. The Attorney General will not accept any registration of any professional

fund raiser, fund raising counsel or professional solicitor unless all of the documents and fees required by law

and these regulations have been submitted and paid, respectively. Incomplete registration material shall be

returned by the Attorney General and the professional fund raiser, fund raising counsel or professional solicitor

may be subject to sanctions pursuant to Article 7-A of the Executive Law. The professional fund raiser, fund

raising counsel or professional solicitor shall not be in compliance with the law and these regulations until the

registration material has been accepted by the Attorney General.

95.3 Registration Fees and Bonds Required of Professional Fund Raisers, Fund Raising Counsel andProfessional Solicitors.

(a) Each professional fund raiser registration form, fund raising counsel registration form and professional

solicitor registration form must be accompanied by the fee mandated by section 173.1 of the Executive Law.

(b) Each professional fund raiser registration form must be accompanied by a bond as mandated by section

173.1 of the Executive Law.

95.4 Contracts with Professional Fund Raisers, Fund Raising Counsel and Commercial Co-Venturers.

(a) Content of Contracts.

(1) In addition to any information required by Article 7-A of the Executive Law, including section 174-a,

all contracts filed with the Attorney General must include the following:

(i) The names, addresses, and New York State registration numbers of both parties to the contract;

(ii) The signatures and dates of signature of the parties to the contract;

40

(iii) The beginning and expiration dates of the contract;

(iv) The terms of the contract, including a clear description of the services to be performed by the

professional fund raiser or fund raising counsel; and

(v) A clear statement of the financial arrangement between the parties which shall include, if

applicable, a statement of:

(a) the percentage or dollar amount of the total funds collected on behalf of the charitable

organization which shall be retained by or paid to the professional fund raiser for purposes other than the

exclusive benefit of the not-for-profit organization’s charitable purposes;

(b) the fixed fee if any to be received by the professional fund raiser or fund raising counsel;

(c) all contractual expenses to be incurred by the professional fund raiser or fund raising counsel but

charged to the not-for-profit or subsequently deducted from the gross receipts. Such list shall contain specific

dollar amounts or projected estimates of these costs; and

(d) the costs per unit for the services to be provided and the projected number of units to be provided.

(vi) A renewal or extension of a contract must comply with the provisions of this section.

(b) Contract Approval, Filing and Cancellation. (b) Contract Approval, Filing and Cancellation:

(1) No contract will be accepted for filing by the Attorney General, unless the contract complies with this

subsection and Article 7-A of the Executive Law, and no services shall be performed pursuant to such contract

if the Attorney General notifies the professional fund raiser or fund raising counsel and the charitable

organization of any deficiencies in the contract and/or compliance with the registration and filing requirements

of the Executive Law or section 8-1.4 of the EPTL and these regulations.

(2) Whenever a charitable organization contracts with a professional fund raiser, fund raising counsel or

41

commercial co-venturer, the charitable organization shall have the right to cancel the contract without cost,

penalty, or liability for a period of fifteen days following the date on which said contract was executed. Any

provision in the contract that is intended to waive this right of cancellation shall be void and unenforceable.

95.5 Interim Statements and Closing Statements of Professional Fund Raisers

Professional fund raisers shall file interim and closing statements as required by section 173-a of the Executive

Law. Such statements shall be signed under penalties for perjury by the professional fund raiser, any

subcontractor and the charity on forms prescribed by the Attorney General. Closing statements shall be filed

within 90 days after the termination of a fundraising contract, provided that in the case of a fundraising contract

that covers a period of more than one year, a professional fund raiser shall file with the Attorney General,

within fifteen months of the execution of the contract and annually thereafter, an interim statement signed under

penalties for perjury by the professional fund raiser, any subcontractor and the charity on forms prescribed by

the Attorney General. Closing and interim statements must be prepared for all activities conducted pursuant to

each contract and shall include the following:

(a) The names of the professional fund raiser(s) and charity(s) that are party to the contract.

(b) The effective and termination dates of the contract as stated in the contract.

(c) If the contract covers more than one year, the period covered by the closing or interim statement.

(d) The beginning and ending dates of the campaign within the specified contract period or contract year

covered by the statement.

(e) If services were provided at any other time during the contract period, a statement of the period during

which such services were provided.

(f) A description of the type of fund raising campaign conducted, including, but not limited to, telemarketing,

42

direct mail, door-to-door, electronic media (television, radio, Internet, etc.), special event, publication, ticket or

product sale or donation of used or new goods.

(g) A statement as to whether the campaign was directed at persons in New York State only or persons in

New York State and other states.

(h) A statement as to whether all contributions received from fundraising activity under the contract were

deposited within five days of receipt in a bank account under exclusive control of the charity.

(i) The names, addresses and account numbers of the banking or other financial institution(s) in which

contributions received from solicitation activity pursuant to the contract were deposited.

(j) A statement as to whether during the specified contract period or contract year the professional fund

raiser contracted with any sub-contractor to perform any services covered by the contract and, if so, the name,

address and telephone number of any such sub-contractor.

(k) A statement as to whether contractual services have been provided and whether the charitable

organization has received all contractual monetary guarantees (if any). If all services have not been completed,

an explanation of what remains to be completed.

(l) A break-down of all revenue received during the reporting period.

(m) A break-down of all expenses incurred by the Professional Fund Raiser and charitable organization in

connection with the campaign, including, but not limited to:

(i) Professional fund raisers’s remuneration\fee(s)

(ii) Salaries and benefits for Professional Solicitors, office manager(s), other PFR employees,

(iii) Permit, license, registration fees

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(iv) Sub-contractors’ remuneration\fee(s),

(v) Postage and shipping,

(vi) Telephone,

(vii) Office rent, office utilities, office insurance,

(viii) Office supplies/other office expenses,

(ix) List rentals,

(x) Printing,

(xi) Advertising,

(xii) Show/event fees,

(xiii) Show/event facilities rental fee(s) and insurance,

(xiv) Computer/data-processing fee(s)

(xv) Cost of merchandise for re-sale

(xvi) Total expenses.

(xvii) Net amount retained by or paid to the charitable organization.

(xviii) Additional amounts paid to the charitable organization as a contractual guarantee.

(xix) Professional Fund Raisers’s profit or loss.

(xx) Uncollected pledges.

(xxi) In-kind donations.

(xxii) The dated signature of the parties to the contract under the penalties for perjury.

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Part 96 Extension of Time to File Annual Financial Reports of Trustees and Charitable Organizations

96.1 Initial Request for Three Month Extension of Time to File Annual Financial Report

Upon written request, preferable y email, submitted prior to the required filing date, the time to file an annual

financial report pursuant to section 8-1.4 of the Estates, Powers and Trusts Law and/or Article 7-A of the

Executive Law may be extended by the Attorney General for up to three months. Email requests should be

sent to [email protected]. An email request must include name of the charity and its

registration number(s) in the subject line and state the reason for the request in the body of the email or include

IRS form 8868 as an attachment. No fees should be submitted with a request for an extension of time to file an

annual report.

96.2 Requests for Further Extension of Time to File Annual Financial Reports

Any requests for further extensions must be submitted in writing, stating the reasons for such request and, if the

registrant files financial reports with the Internal Revenue Service, must be accompanied by an IRS Form 8868

approved by the Internal Revenue Service if received.

96.3 Acknowledgment of Mailed Requests for Extension of Time to File Annual Financial Reports

Mailed requests for extension of time to file annual reports will be acknowledged by the Attorney General only

if submitted in duplicate and accompanied by a self-addressed postage-paid envelope.

96.4 No Extension of Time to File Annual Financial Reports Shall be Granted to Registrants Delinquent inFiling Prior Annual Financial Reports

No extensions of time to file annual financial reports shall be granted to any registrant who has failed to file an

annual financial report for any year prior to that for which the extension is requested.

Part 97 Availability of Forms and Instructions

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Forms and instructions for registration and annual financial filing may be obtained by writing to the Charities

Bureau, New York State Department of Law at 120 Broadway, 3rd floor, New York, NY 10271 or at any other

address designated by the Attorney General or from the Attorney General’s Internet site,

www.oag.state.ny.us/charities/charities.html

Part 98 Changes in Filed Documents and Information

Whenever any instrument or information that has been filed with the Attorney General pursuant to section 8-1.4

of the Estates, Powers and Trusts Law and/or Article 7-A of the Executive Law, including, but not limited to,

certificates of incorporation, annual financial reports, tax exempt status, and registration data, is subsequently

amended, altered, or changed, a copy of the instrument effecting the change or a statement of the information

that has changed shall be filed with the Attorney General within thirty days after any such changes have

occurred. Whenever such information supplements any document required to be signed under penalties for

perjury, any such supplement shall be signed in the same manner. Any filing that fails to contain the appropriate

certification shall be incomplete and may subject the registrant to sanctions pursuant to section 8-1.4 of the

Estates, Powers and Trusts Law and/or Article 7-A of the Executive Law.

Part 99 Identification of Filings

All instruments, reports, checks, annual financial reports and other documents, including correspondence, filed

by any entity to which the Attorney General has assigned a registration number or numbers must include, typed

or printed on the upper right-hand corner of the first page of each such document, the registration number or

numbers assigned.

Part 100 Documents Filed With the Attorney General are Subject to Public Inspection

100.1 Public Documents

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Unless otherwise exempt from disclosure pursuant to state or federal law, registration statements, financial

reports, and other documents required to be filed pursuant to section 8-1.4 of the Estates, Powers and Trusts

Law and/or Article 7-A of the Executive Law become public records

of the Attorney General.

100.2 Inspection of Public Documents

Copies of all registration forms, annual financial reports and other documents filed with the Attorney General

and not exempt from disclosure pursuant to state and/or federal law shall be open to public inspection subject to

the following requirements:

(a) A request for inspection shall be made in writing and shall indicate the name and address of the person

seeking the inspection.

(b) Such inspection shall be subject to the applicable provisions of Article 6 of the Public Officers Law.

(c) Such inspection shall at all times be subject to the supervision and control of the Attorney General or

his assistants.

(d) The Attorney General is authorized to charge a reasonable fee for copying and postage.

(e) Filings may be inspected, by prior appointment, at the offices of the Charities Bureau during regular

business hours or will be mailed to the requestor upon payment of all copying and postage fees.

Part 101 Place of Filing

101.1 Trusts, Estates and Charitable Organizations

All documents, instruments, reports or other data required to be filed and all correspondence relating thereto

shall be directed to the Attorney General, Charities Bureau, Registration Section, 120 Broadway, New York,

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New York 10271 or to any other address that the Attorney General may designate. All financial reports that

contain a qualified accountant’s opinion shall be mailed to the above address, marked “Attention Chief

Accountant”.

101.2 Professional Fund Raisers, Fund Raising Counsel and Professional Solicitors

All documents, instruments, reports or other data required to be filed by fund raising professionals and all

correspondence relating thereto shall be directed to the Attorney General, Charities Bureau, The Capitol,

Albany, New York 12224 or to any other address that the Attorney General may designate.

Part 102 Exemption From Registration

Any trustee or charitable organization claiming exemption from registration with the Attorney General pursuant

to the §8-1.4(b) of the EPTL and/or § 172-a of the Executive Law, shall, with fifteen days of a request from the

Attorney General, provide the Attorney General with written documentation of the basis for such claim.

Part 103 Administrative Enforcement by the Attorney General

103.1 Procedures Applicable to Administrative Proceedings Commenced by the Attorney General Pursuant to

Section 177 of Article 7-A of the Executive Law.

(a) Violations Under the Attorney General’s Administrative Jurisdiction

Upon a finding by the Attorney General that any person has committed or is committing a violation of Article

7-A of the Executive Law, by engaging in activities prohibited under Section 172-d that are subject to the

administrative remedies of Section 177, or by failing to comply with the reporting requirements set forth in

Section 172-b, the Attorney General may impose the administrative remedies listed in section 103.2 of this

part.

103.2 Remedies in Attorney General’s Administrative Proceeding

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(a) Upon a finding of a violation of Article 7-A of the Executive Law, the Attorney General may:

(1) revoke, suspend or deny a registration of a charitable organization or professional fund raiser or

professional solicitor or fund-raising counsel; or issue an order directing a charitable organization or

professional fund raiser or professional solicitor or fund-raising counsel to cease and desist specified fund-

raising activities; and

(2) assess a civil penalty in an amount authorized by Executive Law Section 177.

103.3 Notice of Violation

(a) The Attorney General shall, before denying, revoking or suspending any registration or exemption, or

issuing a cease and desist order, or assessing a civil penalty, notify the respondent in writing and provide an

opportunity for a hearing in accordance with Section 177 of the Executive Law and these rules and regulations.

(b) The notice shall consist of a statement of the charges and shall be served by personal delivery or by

registered or certified mail to the last known business address of the respondent.

(c) If, within thirty days of the date of mailing of the notice of violation, the violation is cured, the respondent

may be entitled to waiver of any civil penalty, as provided under Executive Law Section 177(2)(b).

103.4 Requests for Hearings

(a) Hearings shall be conducted in accordance with Articles three and five of the New York State

Administrative Procedure Act (“SAPA”) and in accordance with 19 NYCRR Part 400.

(b) A hearing must be requested within twenty days after receipt of notice from the Attorney General.

(c) A hearing shall take place within thirty days of the receipt of the request by the Attorney General.

(d) Should the respondent not request a hearing, the Attorney General may impose the administrative remedies

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described in section 103.2 of this Part.

103.5 Notice of Hearing

(a) A hearing shall be held at a time and place designated by the Attorney General.

(b) The Attorney General shall notify the respondent in writing of the time and place of the hearing. The notice

may be served by personal delivery or by registered or certified mail to its last known business address.

(c) Every notice of hearing shall be served with a copy of Articles three and five of SAPA, 9 NYCRR Part 400

and these rules.

(d) The notice shall include:

(1) a statement of the time, place and nature of the hearing;

(2) a statement of the legal authority and jurisdiction for the hearing;

(3) the sections of the statutes or rules involved;

(4) a statement of the facts asserted; and

(5) a statement that free interpreter services will be made available.

103.6 Administrative Hearing Officers

All hearings shall be conducted by administrative law judges (“hearing officers”) appointed by the Attorney

General or his or her designee. The hearing officer shall be an attorney who has not worked on, otherwise

become familiar with the facts of the matter in issue, and shall exercise his or her judgment independently and

impartially.

103.7 Adjournments

(a) Adjournments must be requested by written affidavit sent to the hearing officer no later than three business

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days before the scheduled date of the hearing. The affidavit should contain sufficient details to explain the

reason for the request.

(b) Adjournments will be granted only for good cause.

(c) No more than two adjournments will be granted.

103.8 Subpoenas

(a) Subpoenas may be issued by the hearing officer, the Attorney General or any attorney for a party who is a

member of the New York Bar.

(b) Subpoenas shall be served in accordance with the Civil Practice Law and Rules.

103.9 Conduct of the Hearing

(a) A hearing officer designated by the Attorney General shall conduct the hearing.

(b) The hearing officer may regulate the conduct of the hearing, require witnesses to attend the hearings, take

proof and make relevant factual determinations.

(c) The respondent may appear at the hearing, cross examine witnesses and produce evidence on his or her own

behalf. Should the applicant fail to appear at the hearing, the hearing officer shall hear the evidence given by

the Attorney General and make his or her findings and recommendations on the basis of that evidence.

(d) The proceeding may be resolved by stipulation, consent order or default of any respondent.

103.10 Representation

Any respondent who requests a hearing or is compelled to appear before the Attorney General has the right to

be represented by counsel or a non-lawyer representative.

103.11 Evidence

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(a) Strict rules of evidence do not apply.

(b) In order to expedite the hearing, the Hearing Officer may permit all or part of the evidence to be submitted

in written form.

(c) The Attorney General shall have the burden of proving the violation by a preponderance of the evidence.

(d) A party has the right to cross examine witnesses.

(e) Objections to evidence may be made and shall be noted in the record.

103.12 Record

(a) The Hearing Officer shall make a complete record of the proceeding by whatever means he or she deems

appropriate, including but not limited to, stenographic transcription or recording devices.

(b) The record shall include:

(1) records and documents in the Attorney General’s possession relevant to the initial findings under

Article 7-A of the Executive Law;

(2) notices, pleadings, motions and all rulings by the hearing officer;

(3) evidence presented;

(4) questions, offers of proof and objections;

(5) findings of fact and conclusions of law; and

(6) the decision or determination.

(c) If requested, the Attorney General shall prepare the record and any transcript of the proceedings within a

reasonable time after the decision, but before the commencement of time for judicial review, and provide a copy

to any party.

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103.13 Costs. The Attorney General may charge for the costs incurred in preparing and providing copies of the

record.

103.14 Motions

(a) A motion to dismiss the statement of charges for failure of proof may be made at the conclusion of the

Attorney General’s case.

(b) The hearing officer may:

(1) grant the motion;

(2) deny the motion and continue the hearing; or

(3) reserve making a decision on the motion and continue the hearing.

(c) Denial of the motion by the hearing officer is not appealable because it is not a final decision on the merits.

103.15 Findings of Fact

(a) Any party may submit written proposed findings of fact to the hearing officer within the time frames set by

the hearing officer. The hearing officer will rule on each finding of fact.

(b) Findings of fact must be based on the evidence.

103.16 Time Periods

(a) Every adjudicatory proceeding must be completed within 150 days of the date of the hearing stated in the

notice of hearing. A request for an adjournment extends the time period by the length of time the adjournment is

granted.

(b) Prior to the expiration date, the Attorney General or the hearing officer may extend the time period for no

longer than an additional 120 days by a written determination mailed to all parties that the proceeding cannot be

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completed within 150 days and the reasons for the extension.

103.17 Final Determinations and Orders

(a) The Hearing Officer shall make a final determination within ten days of the conclusion of the hearing.

(b) The Hearing Officer shall make his or her determination or order in writing after consideration of the entire

record and as supported by substantial evidence. Substantial evidence means such proof as a reasonable person

may accept as adequate to support a decision and constitutes a rational basis for the decision.

(c) The determination shall contain findings of fact and conclusions of law or reasons for the decision.

(d) The Attorney General shall serve a copy of such determination or order upon the respondent personally or

by registered or certified mail to the last known business address, or to the attorney of record.

(e) The Attorney General shall maintain an index of all final written decisions by name and subject area.

103.18 Stay of the Decision or Order

(a) After the decision and before filing an appeal from the decision, any party may immediately apply to the

Attorney General for a stay pending a decision on an appeal.

(b) The application must be in writing, based on evidence in the record and served on opposing parties, who can

rebut the application in writing within two business days of receipt.

(c) The Attorney General’s designee shall promptly decide the application.

103.19 Administrative Appeal from the Decision or Order

(a) Within 30 calendar days of receipt, any of the parties may appeal from the decision or order denying,

revoking or suspending any registration or exemption, or issuing a cease and desist order or assessing a civil

penalty, by filing with the individual designated by the Attorney General to hear administrative appeals, and

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serving on the other party or parties, a written memorandum stating the appellant’s arguments.

(b) The memorandum should identify the part or parts of the decision to which the appellant is objecting, state

the grounds for the objection, and identify the portions of the record supporting the objection.

(c) The party served with the appeal may file and serve a memorandum in opposition and a cross-appeal within

thirty days after service of the appeal. A response to a cross-appeal may be filed and served within 15 days

after service of the cross-appeal.

(d) The record on appeal shall consist of the transcript of the hearing and the evidence admitted at the hearing

and the memoranda.

(e) The individual designated by the Attorney General to hear and decide administrative appeals may make a

final written determination:

(1) confirming the decision; or

(2) vacating the decision with an explanation of the basis for vacating the decision; or

(3) sending the matter back to the hearing officer for further proceedings.

103.20 Judicial Appeal from the Final Administrative Determination

Within one hundred twenty days after the final determination, a party may appeal from the final determination

by commencing a proceeding for judicial review under Article 78 of the New York State Civil Practice law and

Rules.

Part 104 Civil Enforcement by the Attorney General

These rules and regulations shall not prohibit the Attorney General from initiating civil any action or

proceeding authorized by law for failure to register and/or file financial reports pursuant to, and/or comply with,

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any provision of Article 8 of the EPTL, Article 7-A of the Executive Law, any other law or the common law.

Part 105 Criminal Enforcement by the Attorney General

(a) These rules and regulations shall not prohibit the Attorney General from initiating any criminal action

authorized by law for failure to register and/or file financial reports pursuant to, and/or comply with, any

provision of Article 8 of the EPTL, Article 7-A of the Executive Law, any other law or the common law.

(b) Any person who swears falsely to any document required by these regulations to be signed under penalties

for perjury may be guilty of a crime under the New York Penal Code.

(c) Any provision of Article 7-A violation of is which is designated a misdemeanor without specification of

classification is a class A misdemeanor. See Penal Law section 55.10.2(b).