EXECUTIVE ORDER 01.01.1996.07 Maryland Charity Campaign for State Employees and Retirees [Amended COMAR 01.01.1993.01]

A. Administration.

(1) The Maryland Charity Campaign for State Employees and Retirees ("the Campaign") shall be administered on an annual basis by the Secretary of State in conformity with the provisions of Executive Order No. 01.01.1983.03 issued on January 24, 1983, as may be amended, which are not inconsistent with this Order.

(2) The Secretary of State shall develop instructions and procedures applicable to voluntary charitable organizations which may desire to participate in the Campaign in accordance with the eligibility criteria set forth herein.

(3) The Secretary of State shall select a qualified operating agency and execute an agreement with such agency for the conduct of the Campaign in accordance with the provisions of this Executive Order.

B. Solicitation Period.

(1) Solicitations of current and retired State employees shall be limited to a 10-week period in the fall of each year.

(2) The heads of all boards, commissions, agencies and departments of State government shall cooperate with the Secretary of State and the operating agency to promote the efficient conduct of the Campaign and to ensure that employee participation in the Campaign is clearly voluntary and free of coercion.

C. Eligibility Criteria. In order to be designated as a participating agency in the Campaign, a charitable organization shall apply to the Secretary of State and shall:

(1) Operate in compliance with all applicable federal, State, and local laws;

(2) Operate under currently valid articles of incorporation or other organizing instrument and by-laws or other governing instrument; a copy of each being submitted with the application, if not already filed with the Secretary of State as part of a prior application or registration;

(3) Hold and maintain a currently valid designation by the Internal Revenue Service (I.R.S.) as a §501(C)(3) organization, and be eligible to receive tax deductible contributions under Section 170 of the Internal Revenue Code; a copy of the I.R.S. designation letter being submitted with the application to the Secretary of State, if not already filed, as part of a prior application for registration;

(4) Submit a duplicate copy of its I.R.S. Form 990 for its most recently completed fiscal year; or if not required by I.R.S. to file a Form 990, a copy of a financial report on a form provided by the Secretary of State, signed and certified by its chief executive officer;

(5) State and certify the percentage of its total revenue from the preceding fiscal year which was spent on management and fund-raising expenses;

(6) If the percent of revenue spent by a charitable organization on management and fund-raising expenses exceeded 25 percent, submit a statement demonstrating that its expenses for these purposes were reasonable under all the circumstances in its case;

(7) Submit a copy of its current operating budget signed and certified by its chief executive officer;

(8) Demonstrate that it has provided a significant level of service to the residents of the State of Maryland or to those in need of such services in other countries for a period of not less than two years immediately preceding the calendar year of the Campaign. Agencies providing services in other countries must provide evidence of financial support from Maryland residents within the past five years;

(9) Certify that it will use funds from the Campaign solely for the provision of services to the residents of the State of Maryland, or to people in other countries, including reasonable administrative costs of these programs;

(10) Beginning with the 1997 Campaign, certify the amount of money received from the most recent Maryland Charity Campaign, and certify how that money was spent to provide services to residents of Maryland or to people in other countries;

(11) Have a majority of its governing body serving without compensation; and

(12) Make available to the public upon request its annual financial report.

D. Technical Assistance and Reconsideration of Application.

(1) The Secretary of State may call upon the operating agency for technical assistance in the administration of the Campaign.

(2) An agency which submits an application for participation in the Campaign which is denied by the Secretary of State may within 10 days of the denial submit a petition for reconsideration. The Secretary of State's disposition of the petition shall be conclusive and final.

E. Operating Agency Criteria. The operating agency shall:

(1) Demonstrate its administrative capability to manage and operate an extensive fund-raising campaign among the State's current and retired employees in an efficient manner;

(2) Demonstrate its financial capability to manage and operate a fund-raising campaign in an efficient manner yielding contributions comparable to those made by State employees and retirees in the past;

(3) Demonstrate its public accountability by certifying that it annually submits to a financial audit by a certified public accountant; make its audited financial statement, or a summary thereof, available to the public upon request; provide evidence that it has engaged in sound management practices that indicate that contributions donated by the public have been utilized with the utmost integrity; and

(4) Demonstrate that it has established a broad base of community support in the State and has established ongoing and cooperative relations with a significant number of the State's charitable organizations.

F. Operating Agency Responsibilities. The operating agency shall:

(1) Promote and publicize the Campaign among the State's current and retired work force;

(2) Publish brochures, informational materials and related matters sufficient for each potential contributor to fairly identify the participating agencies and their principal activity or charitable purpose(s), and the methods to be used for indicating the dollar amount of payroll deduction they wish to contribute;

(3) Cooperate with the Office of the Comptroller, Central Payroll Division and comply with its payroll deduction policies and procedures;

(4) Distribute contributions to participating agencies in accordance with the expressed intention of contributors; and

(5) Agree to the review of its financial activities by authorized representative of the State of Maryland, and, within 180 days of the close of a Campaign, submit to the Secretary of State a complete audited financial statement prepared in accordance with the standards of accounting and financial reporting for voluntary health and welfare organizations.

G. Undesignated Gifts. Where contributors do not specify one or more participating agencies as the beneficiary of their gift, or when a designated participating agency ceases to operate, the operating agency shall distribute such contributions in accordance with policies and programs of the Secretary of State, as described in Campaign literature.

H. Accountings. The Secretary of State or the operating agency may require from participating agencies an accounting of the programmatic and financial utilization of Campaign funds.

I. Disqualification. The Secretary of State may delete from the list of approved participating agencies those charitable organizations which fail to establish and maintain compliance with the provisions of this Executive Order and with the criteria, instructions and procedures of the Secretary of State.

Effective date: April 13, 1984 (11:9 Md. R. 785)

Sections 3 and 4 amended effective March 26, 1985 (12:8 Md. R. 795)

Amended effective February 21, 1992 (19:6 Md. R. 652); January 11, 1993 (20:3 Md. R. 210); February 26, 1996 (23:6 Md. R. 422)