1. Charitable gift annuity agreement defined. For the purposes of this Title, a “charitable gift annuity agreement” is a written contract in which a qualified organization receives money or other property conditioned upon the organization’s agreement to pay an annuity to one or more individuals; as long as, with respect to the organization, the annuity meets the requirements for exclusion from the definition of “acquisition indebtedness” under the Internal Revenue Code, Section 514(c)(5) or a successor provision.

[PL 1995, c. 375, Pt. C, §3 (NEW).]

Terms Used In Maine Revised Statutes Title 24-A Sec. 703-A

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72
2. Qualified organization defined. For the purposes of this Title, a “qualified organization” is an organization that is privately and specially established as an instrumentality of the State for a nonprofit purpose or an organization that meets the following requirements.
A. The organization is a nonprofit organization that is either:

(1) An organization to which the Maine Nonprofit Corporation Act applies; or
(2) Organized under the laws of a jurisdiction within the United States and qualified as a foreign corporation pursuant to Title 13?B, chapter 12. [PL 1995, c. 375, Pt. C, §3 (NEW).]
B. The organization qualifies as a tax-exempt organization under the Internal Revenue Code, Section 501(c)(3) or a successor provision. [PL 1995, c. 375, Pt. C, §3 (NEW).]
C. The organization:

(1) Has been operating continuously for 5 or more years;
(2) Is a parent or subsidiary of a qualified organization; or
(3) Is the successor to an organization that meets the requirements of paragraphs A and B and both organizations together have operated continuously for 5 or more years. [PL 1995, c. 375, Pt. C, §3 (NEW).]

[PL 1995, c. 375, Pt. C, §3 (NEW).]

SECTION HISTORY

PL 1995, c. 375, §C3 (NEW).
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