2013 Kentucky Revised Statutes CHAPTER 65 - GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS 65.1575 Charitable community foundations -- Relationship with local governments.
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65.1575 Charitable community foundations -- Relationship with local
governments.
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As used in this section:
(a) "Foundation" means a charitable community foundation established to
accept gifts, bequests, devises, or other transfers for the purpose of
meeting charitable objectives for the citizens of the community;
(b) "Local government" means every city, regardless of classification, every
county, and every charter county and urban-county government;
(c) "Component fund" means an individual fund treated as part of a
foundation and that meets the requirements established under regulations
promulgated implementing 26 U.S.C. sec. 170 as amended from time to
time; and
(d) "Nonprofit organization" means an organization incorporated under KRS
Chapter 273 and exempt under Section 501(c)(3) of the Internal Revenue
Code.
(a) A local government may donate to a foundation the proceeds from the
sale of any utility or facility or any grant, bequest, or devise received by it.
(b) A local government may contribute to a nonprofit organization exempt
under Section 501(c)(3) of the Internal Revenue Code for the
development and operation of a community center or recreational
facilities.
If the foundation receives a gift from a local government that is subject to
conditions, limitations, or requirements by the donor, the gift shall be
segregated in a component fund within the foundation, which shall be subject
to conditions, limitations, or requirements that are substantially identical to
those established by the donor.
If the foundation receives a gift from a local government that is not subject to
any specified conditions, limitations, or requirements by the donor, the gift
amount shall be maintained in a component fund. The income from the fund
shall be distributed to the local government for charitable purposes as directed
by an ordinance of the governing body of the local government.
If a nonprofit organization receives a gift from a local government, it shall
maintain the financial records so as to be able to ascertain the use of the
donated funds.
The foundation or nonprofit organization exempt under Section 501(c)(3) of the
Internal Revenue Code shall return any donations to the general fund of a local
government if:
(a) The foundation or nonprofit organization exempt under Section 501(c)(3)
of the Internal Revenue Code loses its status as a public charitable
organization;
(b) The foundation or nonprofit organization exempt under Section 501(c)(3)
of the Internal Revenue Code is liquidated; or
(c) The foundation or nonprofit organization exempt under Section 501(c)(3)
of the Internal Revenue Code violates any condition, limitation, or
requirement as established by the local government governing body.
Effective:July 15, 2002
History: Amended 2002 Ky. Acts ch. 290, sec. 1, effective July 15, 2002. -Created 1998 Ky. Acts ch. 332, sec. 1, effective July 15, 1998.
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