Disclosure Requirements for Florida Nonprofit 501(c)(3) Corporations:

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There is confusion amongst CDCs as to what type of information is required to be disclosed to the public. The following outline may help to clear up the confusion:

1. PUBLIC RECORDS ACT (Chpt 199, Florida Statutes)

Under Florida law "agencies" are required to allow any person the right to inspect "public records" (broadly defined to include documents, books, tapes, photos, etc., etc.). The term "agency" is defined to mean just about any state or county department, board, ect, etc. The definition of "agency" also includes private corporations that are "acting on behalf of any public agency". This last phrase is troubling. Court cases seem to limit the application of the phrase only to private corporations undertaking inherently governmental function (such auto tag agencies and private corporations administering prisons, etc.).

It has long been our position is that merely having a contract with local government does not make a nonprofit an "agency" under the Act. THE ATTORNEY FOR THE MIAMI HERALD, Robert Beatty, SEES IT DIFFERENTLY. He believes that any corporation that has a contract with the government is an "agency" and, therefore, subject to the Act. He strongly believes that all CDCs are agencies and must, therefore, allow the Miami Herald the unfettered right to inspect any and all records in their possession. We believe that he is flat wrong. Robert, however, has an interesting counterpoint to our argument. He says that the Miami Herald will aggressively litigate each and every time a CDC refuses to give the Herald access to requested documents (he says that the CDC would then have the opportunity to argue the finer points of the law before the judge). Here then, is my advice for CDCs (1) stay off the Herald's radar screen, and (2) avoid conflicts of interest and questionable transactions (so that you will have nothing to hide if your records are forced to be disclosed)

To view the Public Records Act CLICK HERE.

2. IRS REQUIRED DISCLOSURES FOR "PUBLIC CHARITIES"

The following documents must be provided to requesting individuals immediately (in the case of in-person requests) or within 30 days (in the case of written requests):

• IRS Form 1023 (application for exemption)
  
  
• The three most recently filed annual information returns (including, as applicable, Form 990, Form 990-EZ , and Form 1065 - U.S. Partnership Return of Income). The regulations do not require an exempt organization to disclose the Form 990-T , Exempt Organization Business Income Tax Return, nor the Schedule K-1 of the Form 1065.
  

For more information on these requirements CLICK HERE.

3. ADDITIONAL IRS REQUIRED DISCLOSURES

• 501(c)(3) organizations must provide a written disclosure statement to all donors making quid pro quo contribution in excess of $75. A quid pro quo contribution is a payment made to a charity by a donor PARTLY as a contribution and PARTLY as payment for goods or services provided to the donor by the charity.
  
  
• Donors taking a "charitable deduction" on their tax return (under 170 of the IRS Code) are required to have first obtained from the exempt organization a "contemporaneous" written substantiation for all charitable contributions of $250 or more.
  

For more information on these requirements CLICK HERE

4. DISCLOSURES THAT MUST BE GIVEN TO "MEMBERS" (required by Florida's nonprofit corporation law)

• Within 60 days following the end of the fiscal or calendar year or annually on such date as is otherwise provided in the bylaws of the corporation, the board of directors SHALL MAIL OR FURNISH BY PERSONAL DELIVERY to each "member" a complete financial report of actual receipts and expenditures for the previous 12 months. For more information on this requirement CLICK HERE.
  

• Nonprofit corporations are not required to have "members". If they do, however, Florida law requires that they have certain access to corporate records. Generally speaking, any "member" of a corporation is entitled to inspect and copy, during regular business hours at the corporation's principal office, any of the following: articles of incorporation, bylaws, minutes, accounting records, membership roster, and any other books and records. This requirement is subject to the following limitations: (1) the member's demand must be made in good faith and for a proper purpose; (2) the member must describe with reasonable particularity his or her purpose and the records that he or she desires to inspect; and (3) the records must be directly connected with the member's purpose. For more information on this requirement CLICK HERE.
  

• Below is a listing of the Corporate Records that are required to be kept by nonprofits which are subject to disclosure (from Florida Statutes):