HB130 Summary

• Amends Section 40-9-12 of the Code of Alabama 1975 to provide definitions and qualifications for United Way organizations and other united appeal funds seeking tax exemptions.

• Defines "United Appeal Fund" as a nonprofit entity that raises funds to support other charities, has obtained a Certificate of Exemption from Alabama sales, use, and lodgings tax prior to the effective date, and maintains continuous compliance with reporting requirements.

• Establishes that United Way member agencies must receive more than a de minimis amount of funding through United Way board approval and be accountable to the granting United Way organization for expenditure of funds received.

• Requires each United Way organization to annually submit to the Department of Revenue a list of its constituent United Way member agencies, with submission dates to be established by departmental rule.

• Becomes effective on the first day of the third month following passage and approval by the Governor, or upon otherwise becoming law.