CHARITABLE LAW SECTION

GUIDE FOR
GRANTMAKING
FOUNDATIONS
INTRODUCTION
Ohio’s vibrant, diverse grantmaking founda-
tions have a long history of providing financial
support to communities across the state. These
foundations number more than 3,000 and hold
more than $12 billion in assets, according to a
report recently released by Ohio Grantmakers
Forum. From 1998 through 2002, Ohio’s
grantmakers gave more than $4 billion to non-
profit organizations to aid our most vulnerable
citizens, protect the environment, nurture the
arts, improve health, strengthen education and
contribute to the quality of life throughout the
state.
Most of Ohio’s foundations are modest in
size. Those with less than $5 million in assets
account for almost 90 percent of the total founda-
tions in the state, whether they are private,
community or corporate foundations. About two-
thirds of the foundations hold less than $1 mil-
lion. Ohio consistently ranks high in the nation’s
count of foundations, with about 5 percent of the
country’s nearly 65,000 foundations. Ohio’s
foundations are governed by both federal and
state law that outline how they operate as chari-
table organizations, providing benefit to their
communities, the nation and the world. This
brochure details the state of Ohio’s registration
and reporting requirements for these charitable
foundations.
OHIO LAW REGARDING
REGISTRATION AND REPORTING
The Ohio Revised Code contains two sepa-
rate but related laws that set out registration and
reporting requirements for grantmaking founda-
tions operating in Ohio. These two statutes are
the Ohio Charitable Trust Act, which applies
because of the charitable nature of the founda-
tion, and the Ohio Charitable Organizations Act
(the solicitation statute), which applies to those
foundations that engage in soliciting
contributions.
OHIO CHARITABLE TRUST ACT

The Ohio Charitable Trust Act (ORC Section

109.23, et seq.) requires all charitable trusts,
unless otherwise exempted, to register and file
annual financial reports with the Attorney
General's Office. The statute includes almost any
person or entity responsible for holding and
using funds for charitable purposes, and specifi-
cally recognizes corporations, foundations and
other types of entities within its definition. The
Attorney General has adopted a rule that defines
charitable trusts for registration purposes as
comprising those persons and entities that are
recognized or treated by the Internal Revenue
Service as 501(c)(3) organizations. These entities
are required to register and report to the
Attorney General.
The meaning of the term “charitable trust” is
quite broad and applies whether a foundation is
structured as a nonprofit corporation or as a
trust. In Ohio law, a charitable trust is defined as
“any fiduciary relationship with respect to
property arising under the law of this state or of
another jurisdiction as a result of a manifestation
of intention to create it, and subjecting the person
by whom the property is held to fiduciary duties
to deal with property within this state for any
charitable, religious or educational purpose.”
CHARITABLE TRUST REGISTRATION
Foundations must register using the Chari-
table Trust Registration Form, which can be
obtained online at the Attorney General’s web
site. Registration is a free, one-time obligation,
but should be updated any time there are modifi-
cations to the information collected in the registra-
tion form. Examples of such changes that should
be reported include alterations to the foundation’s
charitable purposes, amendments to its governing
documents, or even a change of the foundation’s
e-mail address.
While there are a number of provisions that
exempt certain organizations from these require-
ments, most do not pertain to Ohio’s foundations.
However, foundations that make grants or have
other activities in Ohio, but operate from another
state are not required to register with the Attorney
General if the foundation has neither assets nor a
majority of the governing body located within Ohio.
CHARITABLE TRUST
FINANCIAL REPORTING
Foundations that are required to register
must file an annual financial statement with the
Attorney General in any year when they had
either gross receipts of more than $5,000 or gross
assets of more than $15,000. Note that this filing
threshold is lower than that of the Internal
Revenue Service. The financial reporting require-
ment is satisfied as described below:
• Foundations headquartered in Ohio that
file federal tax forms file the Attorney
General’s Verification Form, certifying
that the foundation has submitted the
required forms (990, 990-PF or 990-EZ) to
the Internal Revenue Service. As of May
2004, the Attorney General no longer
requires that Ohio foundations submit
hard copies of these federal tax forms.
• Foundations headquartered outside of
Ohio file complete copies of the federal
information returns (990, 990-PF), com-
plete with all attachments and schedules
except the list of donors.
• A foundation that is not required to file
with the Internal Revenue Service files
the Attorney General’s Annual Financial
Report of Charitable Organization.
The annual financial statement is due on the
15th day of the fifth month following the close of
a foundation’s taxable year. If a foundation files
the Verification Form or a copy of the federal
return, an extension granted by the IRS for the
filing of the federal return will be recognized by
the Attorney General.
The annual financial statement must be
accompanied by a fee based on the foundation’s
assets at the end of the taxable year for which the
financial statement is filed. A $200 penalty may
be assessed for late payment of the fee.
 Assets Fee
Under $25,000 0
$25,000 but less than $100,000 $ 50
$100,000 but less than $500,000 $100
$500,000 or more $200

OHIO CHARITABLE ORGANIZATIONS ACT

The Ohio Charitable Organizations Act (ORC

Chapter 1716) requires registration and filing of
an annual financial report by any charitable
organization that intends to solicit contributions
or have contributions solicited on its behalf in
Ohio. Since most family and corporate founda-
tions do not solicit contributions, the provisions
of Chapter 1716 may not apply to those founda-
tions. However, a community foundation would
likely be subject to the act’s requirements.
According to this statute, a charitable organi-
zation includes any 501(c)(3) organization and
any person or entity that holds itself out to be
 established for charitable purposes or who
employs a charitable appeal. Solicitation means
a direct or indirect request for something of value
while representing that all or a portion of it will
benefit a charitable organization or be used for a
charitable purpose.

REGISTRATION FOR SOLICITATION

Any foundation planning to solicit contribu-
tions in Ohio must register and submit financial
reports, unless it falls within one of three exemp-
tions:
1. Any foundation that meets all of the
following conditions:
• It has been in continuous existence in
Ohio for at least two years.
• It is a 501(c)(3) organization.
• It is registered with the Attorney
General under the Charitable Trust
Act.
• It is current in filing its annual finan-
cial statements and paying fees under
the Trust Act.
 This exemption eliminates duplicate filing
requirements for Ohio foundations that are
registered with the Attorney General under the
Charitable Trust Act. Newer foundations may be
required to file under both the Charitable Trust
Act and the Charitable Organizations Act for the
first two years of their existence.
2. Any foundation that meets both of the
following conditions:
• It did not receive gross revenue in
excess of $25,000 in the previous year
(excluding government grants and
grants from other 501(c)(3) organiza-
tions).
• The foundation did not compensate
anyone primarily to solicit contribu-
tions for the foundation, including
paid employees as well as any outside
fundraiser who may have been paid
by the foundation to solicit contribu-
tions.
3. Any foundation that limits its solicitation
to its existing membership, current or
former employees, or present and former
trustees.
If the foundation does not qualify for an
exemption, the Charitable Organization Regis-
tration Statement should be filed with the
Attorney General annually and prior to any
solicitation of contributions. A renewal registra-
tion is required on or before the 15th day of the
fifth month following the close of the fiscal year
in which the foundation solicited contributions in
Ohio.
FINANCIAL REPORTING
A foundation that is required to register must
also submit an annual financial report. The
requirement for filing an annual financial report
is satisfied by filing the appropriate form as
described under the Ohio Charitable Trust Act.
The annual reporting fee is based on the
contributions the foundation received from
persons in Ohio during the past year and must be
submitted with the annual registration form. It is
useful for foundations to consider ways to track
their contributions so they may accurately assess
the fee owed to the Attorney General’s Office.
Contributions Fee
$5,000 but less than $25,000 $ 50
$25,000 but less than $50,000 $100
$50,000 or more $200

OTHER STATE REQUIREMENTS FOR

CHARITABLE FOUNDATIONS
Foundations incorporated as Ohio nonprofit
corporations are also required to file a statement
of continued existence with the Ohio Secretary of
State every five years. Failure to file this state-
ment could result in the cancellation of the
foundation’s articles of incorporation. Founda-
tions headquartered outside Ohio should check
with the Secretary of State regarding registration
and reporting requirements. Information and
forms are available on the Secretary of State’s
website at:
www.sos.state.oh.us
RESOURCES FOR FOUNDATIONS
OHIO ATTORNEY GENERAL'S OFFICE

Charitable Trust and Solicitation registration

forms, the Attorney General’s Annual Financial
Report Form, and the Verification Form are
available on the Attorney General’s web site at
www.ag.state.oh.us or by calling (614) 466-3180.
The site also contains other information of inter-
est to charitable foundations, listed under the
Charitable Law Section.

OHIO GRANTMAKERS FORUM

Ohio Grantmakers Forum (OGF) is a mem-

bership association of foundations, corporate
contributions programs and other grantmaking
organizations. Its mission is to provide leadership
for organized philanthropy in Ohio and to en-
hance the ability of its members to fulfill their
charitable goals. OGF offers programs and
services for foundations, including workshops
and conferences, knowledge and information
services and a forum for foundation leaders to
exchange information, discuss common interests,
sharpen their grantmaking skills and establish
networks of important relationships. For more
information, please contact OGF at:

www.ohiograntmakers.org
(614) 224-1344

OHIO
GRANTMAKE RS
FORUM

Serving Grantmakers. Promoting Philanthropy.

Attorney General Mike DeWine

CHARITABLE LAW SECTION

150 E. GAY ST., 23RD FL.
COLUMBUS, OH 43215
614-466-3180
FAX: 614-466-9788

www.ohioattorneygeneral.gov