65.1575 Charitable community foundations -- Relationship with local governments.

413 words·~2 min read·/ky/chapter-65/65-1575

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)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.

(3)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.

(4)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.

(5)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.

(6)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.