State of the Nonprofit Regulatory Environment in KENTUCKY

1 Bifurcation of charitable regulatory body

Bifurcated Regulatory Structure

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

KY Code § 367.657

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: No - K.R.S. § 367.657

Registration Office

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

BIFURCD-REGIOF-NS

REGULATORY BODY: Not Specific

NOTES: Kentucky Office of the Attorney General http://ag.ky.gov/civil/consumerprotection/charity/Pages/registration.aspx

2 Notice, Filing or Review of Transactions

Sale of Assets

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-ASSETS-AG

REGULATORY BODY: Attorney General

NOTES: No

REPORTS-ASSETS-OT

REGULATORY BODY: Other

NOTES: No

Mergers

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-MERGER-AG

REGULATORY BODY: Attorney General

NOTES: No

KY Code § 273.287

REGULATORY BODY: Other

STATUTE TEXT: Upon such approval, articles of merger or articles of consolidation shall be delivered to the Secretary of State for filing and shall set forth:(1) The plan of merger or the plan of consolidation;Terms Used In Kentucky Statutes 273.287Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010Quorum: The number of legislators that must be present to do business.State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010(2) If the members of any merging or consolidating corporation are entitled to vote thereon, then as to each such corporation:(a) A statement setting forth the date of the meeting of members at which the plan was adopted, that a quorum was present at such meeting, and that such plan received at least two-thirds (2/3) of the votes which members present at such meeting or represented by proxy were entitled to cast; or(b) A statement that such amendment was adopted by a consent in writing signed by all members entitled to vote with respect thereto; and(c) If any merging or consolidating corporation has no members, or no members entitled to vote thereon, then as to each such corporation a statement of such fact, the date of the meeting of the board of directors at which the plan was adopted and a statement of the fact that such plan received the vote of a majority of the directors in office.Effective: January 1, 1989History: Amended 1988 Ky. Acts ch. 23, sec. 204, effective January 1, 1989. - Amended 1978 Ky. Acts ch. 384, sec. 452, effective June 17, 1978. - Amended1976 Ky. Acts ch. 27, sec. 11. - Created 1968 Ky. Acts ch. 165, sec. 40.

NOTES: Filing with Sec. of State K.R.S. § 273.287

Certificate of Amendments

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-AMMEND-AG

REGULATORY BODY: Attorney General

NOTES: No

KY Code § 273.267

REGULATORY BODY: Other

STATUTE TEXT: A corporation amending its articles of incorporation shall deliver to the Secretary of State for filing articles of amendment that satisfy KRS 14A.2-010 to 14A.2-150 setting forth:(1) The name of the corporation. (2) The amendment so adopted.Terms Used In Kentucky Statutes 273.267Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010Quorum: The number of legislators that must be present to do business.State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010(3) If there are members entitled to vote thereon, (a) a statement setting forth the date of the meeting of members at which the amendment was adopted, that a quorum was present at such meeting, and that such amendment received at least two-thirds (2/3) of the votes which members present at such meeting or represented by proxy were entitled to cast, or (b) a statement that such amendment was adopted by a consent in writing signed by all members entitled to vote with respect thereto.(4) If there are no members, or no members entitled to vote thereon, a statement of such fact, the date of the meeting of the board of directors at which the amendment was adopted, and a statement of the fact that such amendment received the vote of a majority of the directors in office.Effective: January 1, 2011History: Amended 2010 Ky. Acts ch. 151, sec. 65, effective January 1, 2011. - Amended 1988 Ky. Acts ch. 23, sec. 202, effective January 1, 1989. - Created 1968Ky. Acts ch. 165, sec. 34.

NOTES: Sec. of State KRS § 273.267

Does the state require annual financial reporting by charitable organizations in addition to filing a copy of the 990 with the regulator (if filing 990 is required)?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

REPORTS-FINANC-NS

REGULATORY BODY: Not Specific

NOTES: Only requires 990

3 Notice or Action for Dissolutions

Voluntary Dissolutions

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

DISSOLV-VOLUNT-AG

REGULATORY BODY: Attorney General

NOTES: No

KY Code § 273.313

REGULATORY BODY: Other

STATUTE TEXT: (1) At any time after dissolution is authorized and proceedings have not been revoked, articles of dissolution shall be delivered to the Secretary of State for filing and shall set forth:(a) The name of the corporation;Terms Used In Kentucky Statutes 273.313Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010(b) The date dissolution was authorized;(c) If there are members entitled to vote thereon:1. The number of votes entitled to be cast on the proposal to dissolve;2. Either the total number of votes cast for and against dissolution or the total number of undisputed votes cast for dissolution and a statement that the number cast for dissolution was sufficient for approval; and3. If voting by voting groups was required, the information required by this paragraph shall be separately provided for each voting group entitled to vote separately on the plan to dissolve;(d) If there are no members, or no members entitled to vote thereon, a statement of such fact, the date of the meeting of the board of directors at which the resolution to dissolve was adopted and a statement of the fact that such resolution received the vote of a majority of the directors in office; and(e) A copy of the plan of distribution as adopted by the corporation.(2) The Secretary of State shall immediately forward one (1) of the exact or conformed copies of the articles of dissolution to the secretary of revenue.(3) A corporation shall be dissolved upon the effective date of its articles of dissolution.Effective: June 24, 2015History: Amended 2015 Ky. Acts ch. 34, sec. 72, effective June 24, 2015. - Amended1988 Ky. Acts ch. 23, sec. 207, effective January 1, 1989. - Created 1968 Ky. Acts ch. 165, sec. 48.

NOTES: Secretary of State KRS § 273.313

Judicial Dissolutions

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

KY Code § 273.320 ;; 273.32

REGULATORY BODY: Attorney General

STATUTE TEXT: A corporation may be dissolved involuntarily by a decree of the Circuit Court in an action filed by the Attorney General when it is established that:(1) The corporation is guilty of abuse or misuse of its corporate powers, privileges or franchises, or the corporation has become detrimental to the interest and welfare of the Commonwealth of Kentucky or its citizens; orTerms Used In Kentucky Statutes 273.320Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010Attorney: means attorney-at-law. See Kentucky Statutes 446.010Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010Fraud: Intentional deception resulting in injury to another.State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010(2) The corporation procured its articles of incorporation through fraud; or(3) The corporation has failed to file its annual report as required by KRS 14A.6-010;or(4) The corporation has failed to appoint and maintain a registered agent in this state; or(5) The corporation has failed after change of its registered agent to file in the office of the Secretary of State a statement of such change.Effective: January 1, 2011History: Amended 2010 Ky. Acts ch. 151, sec. 125, effective January 1, 2011. - Amended 1988 Ky. Acts ch. 23, sec. 246, effective January 1, 1989. - Created 1968Ky. Acts ch. 165, sec. 50.

NOTES: KRS § 273.320

KY Code § 273.347

REGULATORY BODY: Other

STATUTE TEXT: (1) In a proceeding to liquidate the assets and affairs of a corporation, when the costs and expenses of such proceeding and all debts, obligations, and liabilities of the corporation shall have been paid and discharged and all of its remaining property and assets distributed in accordance with the provisions of KRS 273.161 to273.390, or in case its property and assets are not sufficient to satisfy and discharge such costs, expenses, debts, and obligations, and all the property and assets have been applied so far as they will go to their payment, the court shall enter a decree dissolving the corporation.Terms Used In Kentucky Statutes 273.347Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010(2) The clerk of the court shall cause a certified copy of a decree entered under subsection (1) of this section to be filed with the Secretary of State. No fee shall be charged by the Secretary of State for the filing thereof. The dissolution shall be effective upon the latter of the date of filing of the decree by the Secretary of State or such later date as is specified in the decree.Effective: July 12, 2012History: Amended 2012 Ky. Acts ch. 81, sec. 103, effective July 12, 2012. - Created1968 Ky. Acts ch. 165, sec. 58.

NOTES: File with Sec. of State KRS § 273.347

Administrative Dissolutions

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

DISSOLV-ADMINI-AG

REGULATORY BODY: Attorney General

DISSOLV-ADMINI-OT

REGULATORY BODY: Other

4 Notice, Oversight or Filing of Hospital Conversions

Has Statute

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

HOSPCON-STATUT-NS

REGULATORY BODY: Not Specific

NOTES: No

Requires Notice or Oversight

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

HOSPCON-OVERSI-AG

REGULATORY BODY: Attorney General

HOSPCON-OVERSI-OT

REGULATORY BODY: Other

Requires Filing

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

HOSPCON-FILING-OT

REGULATORY BODY: Other

5 Audits

Requires Audit

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

AUDITFI-AUDITS-NS

REGULATORY BODY: Not Specific

NOTES: No* But the Attorney General may require that the financial reports of solictation campaigns be audited upon request. K.R.S. 367.658

Audit Threshold

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

AUDITFI-THRESH-NS

REGULATORY BODY: Not Specific

6 Registration Law

Registration Law

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

KY Code § 367.650

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: KRS § 367.650 - 367.670: only professional solicitors and fundraising consultants must register, KRS 367.652, but all organizations that intend to solicit must submit the IRS Form 990 with the Attorney General, KRS 367.657.

7 Exemptions from Registering for Specific Organization Types

Religious Organizations

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

KY Code § 367.660(2)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: KRS § 367.660(2)

Small organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-SMALLO-NS

REGULATORY BODY: Not Specific

NOTES: NO

Educational Institutions

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

KY Code § 367.660(3)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: KRS § 367.660(3)

Governmental Organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-GOVMNT-NS

REGULATORY BODY: Not Specific

NOTES: NO

Hospitals

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-HOSPIT-NS

REGULATORY BODY: Not Specific

NOTES: NO

Veterans organizations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-VETERA-NS

REGULATORY BODY: Not Specific

NOTES: NO

Foundations

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-FNDYES-NS

REGULATORY BODY: Not Specific

NOTES: NO

Foundations that don’t solicit contributions

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-FNDNOS-NS

REGULATORY BODY: Not Specific

NOTES: NO

Charitable Trusts

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-CTRUST-NS

REGULATORY BODY: Not Specific

NOTES: NO

Parent-Teacher Organizations

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

KY Code § 367.660(4)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: KRS § 367.660(4)

Reports to congress

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-CONGRE-NS

REGULATORY BODY: Not Specific

NOTES: NO

Non-soliciting

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

KY Code § 367.652

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: KRS § 367.652

Fraternal/ Membership

Regulatory Action: EXEMPTION

YES: A regulation is defined in the state

KY Code § 367.660(1)

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: KRS § 367.660(1)

Political Orgs

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-POLITI-NS

REGULATORY BODY: Not Specific

NOTES: NO

Other

Regulatory Action: EXEMPTION

A regulation is NOT defined in the state

ORGTYPE-OTHTYP-NS

REGULATORY BODY: Not Specific

8 Defined remedies

Dissolution

Regulatory Action: REMEDY

YES: A regulation is defined in the state

KY Code § 273.320 ;; 273.32

REGULATORY BODY: Not Specific

NOTES: KRS § 273.320

Removal of Board Members

Regulatory Action: REMEDY

A regulation is NOT defined in the state

REMEDYT-BRDRMV-NS

REGULATORY BODY: Not Specific

NOTES: No

9 Oversight of professional fundraisers

Does the state require registration by commercial fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

KY Code § 367.652

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Ky. Rev. Stat. Ann. § 367.652

Does the state require registration by fundraising counsel?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

KY Code § 367.652

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Ky. Rev. Stat. Ann. § 367.652

Does the state oversee commercial-coventuring (e.g. by requiring that the co-venture be registered or by requiring that the charitable organization files the co-venture contract)?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

FNDRAZE-VENTUR-NS

REGULATORY BODY: Not Specific

Does the state require the fundraisers to provide notice to the regulator before any solicitation campaign (in addition to annual registration and/or filing the contract)?

Regulatory Action: REQUIREMENT

A regulation is NOT defined in the state

KY Code § 367.653

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Ky. Rev. Stat. Ann. § 367.653: professional solicitors must file a “written promotion registration statement with the Attorney General” along with the contract between the fundraiser and the charitable organization at least 14 days before the service pursuant to the contract. I changed this to a “no”: Put correctly noted that this document is submitted at the same time as the contract and appears not to necessarily be required with each new solicitation campaign.

Does the state require specified disclosures to donors?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

KY Code § 367.668

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Ky. Rev. Stat. Ann. § 367.668

Does the state require a copy of any contract between a charitable organization and a commercial fundraiser or fundraising counsel be filed with the regulator?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

KY Code § 367.653

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: Ky. Rev. Stat. Ann. § 367.653

Does the state require annual financial reporting by commercial fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

KY Code § 367.658

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: “Within ninety (90) days after the completion of a solicitation campaign or on the anniversary of the commencement of a solicitation campaign lasting more than one (1) year, a professional solicitor shall file with the Attorney General a financial report of the campaign, including gross revenues and an itemization of all expenses incurred.” Ky. Rev. Stat. Ann. § 367.658 (West)

Does the state require bonding of professional fundraisers?

Regulatory Action: REQUIREMENT

YES: A regulation is defined in the state

KY Code § 367.652

REGULATORY BODY: Not Specific

STATUTE TEXT:

NOTES: At the time of filing the registration statement, a professional solicitor must file a full cash or surety bond for $25,000 with the Attorney General. Each registration expires December 31 of the year it was filed and may be renewed by reapplying and paying the prescribed fee. Ky. Rev. Stat. Ann. § 367.652