{"data":{"id":"us-ky/krs-65.1575","jurisdiction":"us-ky","citation":"KRS 65.1575","heading":"Charitable community foundations -- Relationship with local governments.","body":"(1) As used in this section:\n(a) \"Foundation\" means a charitable community foundation established to accept\ngifts, bequests, devises, or other transfers for the purpose of meeting\ncharitable objectives for the citizens of the community;\n(b) \"Local governme nt\" means every city, regardless of classification, every\ncounty, and every charter county and urban-county government;\n(c) \"Component fund\" means an individual fund treated as part of a foundation\nand that meets the requirements established under regulati ons promulgated\nimplementing 26 U.S.C. sec. 170 as amended from time to time; and\n(d) \"Nonprofit organization\" means an organization incorporated under KRS\nChapter 273 and exempt under Section 501(c)(3) of the Internal Revenue\nCode.\n(2) (a) A local government may donate to a foundation the proceeds from the sale of\nany utility or facility or any grant, bequest, or devise received by it.\n(b) A local government may contribute to a nonprofit organization exempt under\nSection 501(c)(3) of the Internal Revenue C ode for the development and\noperation of a community center or recreational facilities.\n(3) If the foundation receives a gift from a local government that is subject to\nconditions, limitations, or requirements by the donor, the gift shall be segregated in\na component fund within the foundation, which shall be subject to conditions,\nlimitations, or requirements that are substantially identical to those established by\nthe donor.\n(4) If the foundation receives a gift from a local government that is not subject  to any\nspecified conditions, limitations, or requirements by the donor, the gift amount shall\nbe maintained in a component fund. The income from the fund shall be distributed\nto the local government for charitable purposes as directed by an ordinance of t he\ngoverning body of the local government.\n(5) If a nonprofit organization receives a gift from a local government, it shall maintain\nthe financial records so as to be able to ascertain the use of the donated funds.\n(6) The foundation or nonprofit organiza tion exempt under Section 501(c)(3) of the\nInternal Revenue Code shall return any donations to the general fund of a local\ngovernment if:\n(a) The foundation or nonprofit organization exempt under Section 501(c)(3) of\nthe Internal Revenue Code loses its status as a public charitable organization;\n(b) The foundation or nonprofit organization exempt under Section 501(c)(3) of\nthe Internal Revenue Code is liquidated; or\n(c) The foundation or nonprofit organization exempt under Section 501(c)(3) of\nthe Internal Revenue Code violates any condition, limitation, or requirement\nas established by the local government governing body.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=23348","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:20Z","sha256":"894f6fc7c3b18875f0f10bdd17d511a27e0e8ea1dbac58f5defe5857dd9a7388","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.157","next":"us-ky/krs-65.158"},"notice":"GroundRules: Original legal text. Not legal advice."}