NRS615.175. Organizations that operate certain rehabilitation facilities or workshops: Requirements; audits; submission of tax information.

  Before participating in a training or rehabilitative program of a rehabilitation facility or workshop established by the Department pursuant to this chapter and annually thereafter as a condition of participation, an organization must:

      1.  Be on file and in good standing with the Secretary of State as a nonprofit organization pursuant to title 7 of NRS;

      2.  Submit to the Department an annual audit of the financial statements of the organization that is conducted by an independent certified public accountant; and

      3.  Submit to the Department the most recent federal tax return of the organization, including, without limitation, Form 990, or its successor form, and the Schedule L and Schedule R of such return, or the successor forms of such schedules, which include an itemization of:

      (a) Any transaction during the federal tax year of the organization in which an economic benefit is provided by the organization to a director, officer or board member of the organization, or any other person who has substantial influence over the organization, and in which the value of the economic benefit provided by the organization exceeds the value of the consideration received by the organization;

      (b) Any loans to or from the organization which are received by or from a director, officer or board member of the organization, a person who has substantial influence over the organization or a family member of such director, officer, board member or person and which remain outstanding at the end of the federal tax year of the organization;

      (c) Any grants or other assistance from the organization during the federal tax year of the organization which benefit a director, officer or board member of the organization, a person who has substantial influence over the organization or a family member of such director, officer, board member or person;

      (d) Business transactions during the federal tax year of the organization between the organization and a director, officer or board member of the organization, a person who has substantial influence over the organization or a family member of such director, officer, board member or person which exceed, in the aggregate, $100,000, or a single business transaction that exceeds $10,000; and

      (e) All related party transactions including, without limitation, the receipt of interest, royalties, annuities or rent, the sale or purchase of assets or services, the sharing of facilities, equipment or employees, and the transfer of cash or property.

      (Added to NRS by 2011, 2130)