Sec. 01.02.04.02. Responsibilities of Persons Regulated

A. Notice of Tax Deductibility.

(1) An organization shall advise its members of the amount, if any, of the membership fees, dues, fines, or assessments which the Internal Revenue Service does not consider tax deductible as a contribution.

(2) An organization shall advise each purchaser or contributor of the amount, if any, of the contribution which the Internal Revenue Service does not consider tax deductible.

B. Financial Management.

(1) A person shall establish a system of internal accounting controls which will provide reasonable assurance that all transactions have been properly executed and recorded.

(2) If an audit is required, the audit shall be made in accordance with generally accepted auditing standards and in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding period.

(3) The governing board of an organization may not permit the commingling of the organization's assets with those of any other person without establishing and maintaining adequate accounting controls over the ownership and use of the assets.

C. Submission of Fund-Raising Contracts. An organization using the services of a professional solicitor or fund-raising counsel shall submit with its registration and each annual report a copy of each fund-raising agreement.