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

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1 Chapter V Charitable Uses and Purposes Title 13 New York Code of Rules and Regulations Part 90 - Definitions 90.1 Trustees RULES AND REGULATIONS FOR REGISTRATION OF CHARITABLE TRUSTEES, INCLUDING TRUSTS, ESTATES NOT-FOR-PROFIT CORPORATIONS AND OTHER CHARITABLE TRUSTEE INCLUDING CHARITABLE ORGANIZATIONS IN NEW YORK STATE PURSUANT TO ARTICLE 8 OF THE ESTATES, POWERS AND TRUSTS LAW AND ARTICLE 7-A OF THE EXECUTIVE LAW 90.2 Charitable Organization Part 91 REGISTRATION AND REPORTING BY TRUSTEES PURSUANT TO ARTICLE 8 OF THE ESTATES, 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 the Executive Law 92.1 To Whom This Part Applies 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 Register With the Attorney General Pursuant to Both the Estates, Powers and Trusts Law and Article 7- A of the Executive Law 1

2 93.1 To Whom This Part Applies 93.2 Registration 93.3 Annual Financial Reports of Charitable Organizations 93.4 Cancellation of 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 Professional Solicitors 95.1 To Whom This Part Applies 95.2 Registration 95.3 Registration Fees and Bonds Required of Professional Fund Raisers, Fund Raising Counsel and Professional Solicitors Contracts with Professional Fund Raisers, Fund Raising Counsel and Commercial Co-Venturers 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 in Filing Prior Annual Financial Reports Part 97 Availability of Forms and Instructions Part 98 Changes in Filed Documents and Information Part 99 Identification of Filings 2

3 Part 100 Documents Filed With the Attorney General are Subject to Public Inspection Public Documents Inspection of Public Documents Part 101 Place of Filing Trusts, Estates and Charitable Organizations Professional Fund Raisers, Fund Raising Counsel and Professional Solicitors Part 102 Exemption From Registration Part 103 Administrative Enforcement by the Attorney General Procedures Applicable to Administrative Proceedings Commenced by the Attorney General Pursuant to Section 177 of Article 7-A of the Executive Law Remedies in Attorney General s Administrative Proceeding Notice of Violation Requests for Hearings Notice of Hearing Administrative Hearing Officers Adjournments Subpoenas Conduct of the Hearing Representation Evidence Record Costs Motions 3

4 Findings of Fact Time Periods Final Determinations and Orders Stay of the Decision or Order Administrative Appeal from the Decision or Order Judicial Appeal from the Final Administrative Determination Part 104 Civil Enforcement by the Attorney General Part 105 Criminal Enforcement by the Attorney General 4

5 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 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 THE ESTATES, POWERS AND TRUSTS LAW 91.1 To Whom This Part Applies 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. 5

6 91.2 Registration (a) When to Register. A trustee that is required to register with the Attorney General pursuant to section 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 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. 6

7 (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. 7

8 (h) The name, mailing address, fax, telephone number and address of the estate or the name, mailing address, fax, telephone number and 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 , 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, 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 8

9 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. 9

10 (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 10

11 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 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 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 Annual Financial Reports of Trustees (a) When to be Filed. A trustee registered or required to register with the Attorney General pursuant to section 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. 11

12 (b) Annual Financial Reports. Annual financial reports filed by trustees pursuant to section 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. 12

13 (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 13

14 (ii) CHAR003 (securities schedule) if the private foundation 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. (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 (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. (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. 14

15 (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: 15

16 (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 16

17 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 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 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 the Executive Law 92.1 To Whom This Part Applies This part applies to any charitable organization, as defined in sections 171-a and 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 17

18 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 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, 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 18

19 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. 19

20 (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), 20

21 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 21

22 (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 $ must accompany each Charities Re-Registration Statement (CHAR410-R). (i) Entities Registered Pursuant to Section 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 Annual Financial Reports of Charitable Organizations (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 22

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 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 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 23

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 24

25 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 25

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 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 Cancellation of Registration 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 reregistered pursuant to Article 7-A of the Executive Law, regardless of its registration status pursuant to section of the Estates, Powers and Trusts Law. Part 93 Registration of and Financial Reporting by Trustees and Charitable Organizations Required to Register With the Attorney General Pursuant to Both the Estates, Powers and Trusts Law and Article 7- A of the Executive Law 93.1 To Whom This Part Applies 26

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 of the Estates, Powers and Trusts Law 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 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 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. 27

28 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 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 Cancellation of Registration 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 reregistered pursuant to Article 7-A of the Executive Law, regardless of its registration status pursuant to section of the Estates, Powers and Trusts Law. 28

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 29