Section 330.3 - 25% Administrative Cost Cap(a) To be eligible to participate in a state employee charitable campaign (SECC), a charitable organization must not spend more than 25% of its annual revenue for administrative and fund raising expenses.(b) The calculation method used to determine administrative costs will be as follows: Administrative expenses + fund raising costs divided by total revenue = percentage of revenue for administrative costs which can be calculated on the IRS Form 990 by adding the amount in part IX (Statement of Functional Expenses), Line 25, Column C (Management and General Expenses) to the amount in Line 25, Column D (Fundraising Expenses), and dividing the sum by Part VIII (Statement of Revenue), Line 12, Column A (Total Revenue). For purposes of listing administrative costs in the state employee charitable campaign brochure, calculation of administrative costs will be carried out two places, rounded down if under 0.50, rounded up if 0.50 or over; however, if the costs are any amount over 25%, the application will be denied. Neither the LEC nor the SPC will grant a waiver from this requirement.34 Tex. Admin. Code § 330.3
The provisions of this §330.3 adopted to be effective June 23, 2002, 27 TexReg 5210; amended to be effective March 10, 2005, 30 TexReg 1453; amended to be effective March 16, 2006, 31 TexReg 1723; amended to be effective October 14, 2010, 35 TexReg 9108; amended by Texas Register, Volume 39, Number 48, November 28, 2014, TexReg 9364, eff. 12/4/2014