A domestic or foreign nonprofit corporation that is organized exclusively as, or for the purpose of aiding, an educational, religious, charitable, scientific or philanthropic institution is eligible to receive a Certificate of Exemption to issue gift annuities. N.D.C.C. § 26.1-34.1 addresses the requirements for obtaining and maintaining a Certificate of Exemption.
A nonprofit corporation seeking a Certificate of Exemption to issue gift annuities must submit the following forms and items:
- Application for Certification of Exemption to Issue Gift Annuities (SFN 17914)
- Agent of Process - Attachment A (SFN 17912)
- Segregated Account/Contents of Contract - Attachment B (SFN 17913)
- Statement of the financial condition, management, and affairs of the organization, including an accurate and complete financial statement consisting of the latest balance sheet and income and expense statement, showing the current financial condition of the corporation and sworn to by the officer of the corporation having responsibility for preparing the statement.
- Evidence of current tax-exempt status under U.S. law
- Nonrefundable filing fee of $100
- Templates of each charitable annuity contract or policy form that will be used or issued. Each must include at least the following information:
- The value of the property to be transferred
- The amount of the periodic annuity benefits to be paid
- The manner in which and the intervals at which payment is to be made
- The age of the person during whose life payment is to be made
- The reasonable value as of the date of the agreement of the benefits thereby created
The North Dakota Insurance Department will issue a Certificate of Exemption if the application is approved. An application may be filed at any time throughout the year. The application and fee should be sent to the Department.
Annual renewal fees are not required. The Certificate of Exemption is perpetual and continues until the North Dakota Insurance Department is notified that the organization intends to withdraw or no longer issues gift annuity contracts in this state.
Every Certificate of Exemption holder must file an annual audited Financial Statement (unaudited if audited not available) within 15 days of the Financial Statement's preparation. The Financial Statement may be "as of Dec. 31" or "as of June 30" of the current year, whichever is applicable.
Please submit an electronic version of the audited financial statement as an email attachment to firstname.lastname@example.org with the subject line "Gift Annuity Financial Statement."
A written notification of any corporate changes, such as a name change, address change, merger, or tax-exempt status must be sent to the Department in a timely manner. The notification should include updated documents (charter, articles, bylaws, Agent of Process, tax status, etc.) to reflect the change, as applicable.