Md. Code Regs. 13B.01.03.04

Current through Register Vol. 51, No. 22, November 1, 2024

Section 13B.01.03.04 - Criteria for Classification

A. An institution of higher education shall be determined to be a private nonprofit institution of higher education under § 10-101 of the Education Article if it:

(1) Benefits no person or entity through any part of its net earnings;

(2) Is legally authorized to operate as a nonprofit organization by each state in which it is physically located;

(3) Has been determined by the IRS to be an organization to which contributions are tax deductible in accordance with 26 U.S.C. 501(c)(3);

(4) Had no reportable incidents in the previous calendar year that:

(a) Are determined by the Secretary to constitute private inurement; and

(b) Were not satisfactorily corrected prior to the submission of the report in Regulation .05 of this chapter; and

(5) Timely files the report required under Regulation .05 of this chapter.

B. An institution shall be determined to be a for-profit institution of higher education under Education Article, § 10-101, Annotated Code of Maryland, if it:

(1) Does not request classification as a private nonprofit institution of higher education by filing the report required under Regulation .05 of this chapter;

(2) Benefits any person or entity through any part of its net earnings;

(3) Is not legally authorized to operate as a nonprofit organization by each state in which it is physically located;

(4) Has not been determined by the IRS to be an organization to which contributions are tax deductible in accordance with 26 U.S.C. 501(c)(3);

(5) Had any reportable incidents in the previous calendar year that:

(a) Are determined by the Secretary to constitute private inurement; and

(b) Were not satisfactorily corrected prior to the submission of the report in Regulation .05 of this chapter;

(6) Knowingly fails to disclose a reportable incident in the report required under Regulation .05 of this chapter; or

(7) Does not timely file the report required under Regulation .05 of this chapter.

Md. Code Regs. 13B.01.03.04

Regulation .04 adopted effective 47:4 Md. R. 262, eff. 2/24/2020