Section 5-306 - Charitable entity or trust. - Maryland Statutes

§ 6.5-306. Charitable entity or trust.
 

(a)  Prerequisites for distribution.- Before a public or nonprofit charitable entity or trust may receive a distribution of public or charitable assets in accordance with an agreement, contract, or transaction approved by the regulating entity under this subtitle, it shall have mechanisms in place to: 

(1) avoid conflicts of interest; and 

(2) prohibit the making of grants that would benefit: 

(i) the public or nonprofit charitable entity's or trust's board of directors; 

(ii) the public or nonprofit charitable entity's or trust's management; 

(iii) the for-profit stock entity; or 

(iv) a mutual entity. 

(b)  Annual report.- A public or nonprofit charitable entity or trust that receives a distribution of public or charitable assets shall submit an annual report to the office regarding the grant-making and other charitable activities of the entity related to its use of the public or charitable assets received. 

(c)  Availability of annual report.- The annual report submitted under subsection (b) of this section shall be made available to the public at the principal office of the public or nonprofit charitable entity or trust. 
 

[1998, chs. 123, 124.]