Nev. Admin. Code § 387.753

Current through November 8, 2024

Section 387.753 - Creation of organization to raise money on behalf of charter school

1. A committee to form a charter school may create an organization to raise money on behalf of the charter school proposed by the committee. Such an organization must be recognized as exempt under section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), organized for the sole purpose of benefiting the charter school proposed by the committee and have directors and officers who are:

(a) Identical to the membership of the committee to form a charter school; or

(b) Not also members of the committee to form a charter school.

2. If a committee to form a charter school creates an organization to raise money on behalf of a charter school described in paragraph (a) of subsection 1:

(a) The bylaws of the organization and the bylaws of the charter school must explicitly require that, if the charter school is awarded a charter contract, except as otherwise provided in paragraph (g), the membership of the governing body of the charter school and the directors and officers of the organization to raise money on behalf of the charter school remain identical for the duration of the charter contract;

(b) The sponsor of the charter school shall consider any change to the bylaws of the organization or the bylaws of the charter school to be a material change to the charter contract;

(c) All meetings of the organization must be held simultaneously with meetings of the governing body of the charter school and in compliance with chapter 241 of NRS;

(d) The books and records of the organization must be made available for public inspection at the same times and on the same basis as the books and records of the charter school;

(e) No officer or employee of the charter school may accept compensation from the organization;

(f) The organization shall not provide staff or services to the charter school for compensation; and

(g) Within 3 years after the charter school is awarded a charter contract, the charter school must be recognized as exempt under section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), and the organization must dissolve and transfer all its assets to the charter school.

3. If a committee to form a charter school creates an organization to raise money on behalf of a charter school described in paragraph (b) of subsection 1:

(a) The bylaws of the organization and the bylaws of the charter school must explicitly require that, if the charter school is awarded a charter contract, no director or officer of the organization may serve as a member of the committee to form the charter school or the governing body of the charter school for the duration of the charter contract;

(b) No officer or employee of the charter school may serve on the board of or accept compensation from the organization;

(c) The organization may provide staff or services to the charter school for compensation if it enters into a management agreement as an educational management organization, as defined in subsection 2 of NRS 388A.393, with the charter school; and

(d) If the organization is dissolved or ceases to exist for the exclusive purpose of benefiting the charter school, all assets of the organization must be transferred to the charter school.

Nev. Admin. Code § 387.753

Added to NAC by Dep't of Education by R131-16, eff. 12/19/2017

NRS 388A.110