SECTION 329.3. 25% Administrative Cost Cap

(a) To be eligible to participate in a state employee charitable campaign (SECC), a charitable organization must not spend more than 25% of its annual revenue for administrative and fund raising expenses.

(b) The calculation method used to determine administrative costs will be as follows: Administrative expenses + fund raising costs divided by total revenue = percentage of revenue for administrative costs which can be calculated on the IRS Form 990 by adding the amount in part IX (Statement of Functional Expenses), Line 25, Column C (Management and General Expenses) to the amount in Line 25, Column D (Fundraising Expenses), and dividing the sum by Part VIII (Statement of Revenue), Line 12, Column A (Total Revenue). For purposes of listing administrative costs in the state employee charitable campaign brochure, calculation of administrative costs will be carried out two places, rounded down if under 0.50, rounded up if 0.50 or over; however, if the costs are any amount over 25%, the application will be denied. The SPC will not grant waivers from this requirement.

Source Note: The provisions of this §329.3 adopted to be effective June 23, 2002, 27 TexReg 5209; amended to be effective March 10, 2005, 30 TexReg 1452; amended to be effective March 16, 2006, 31 TexReg 1721; amended to be effective October 14, 2010, 35 TexReg 9108; amended to be effective December 4, 2014, 39 TexReg 9363