Title 53, Chapter 12, Section 116
(a) As used in this Code section, the term "charitable trust" means
a charitable trust which conforms to the definition of a private
foundation set forth in Section 509 of the Internal Revenue Code.
(b) As used in this Code section, the term "trustee" means the
trustee of a charitable trust.
(c) The state revenue commissioner shall be authorized to supervise
the administration of charitable trusts in the manner set forth in
this Code section.
(d) Every trustee of a charitable trust shall file with the state
revenue commissioner a copy of the annual return filed by the
trustee with the Internal Revenue Service, as required by Section
6033 of the Internal Revenue Code, or a copy of the annual report
filed by the trustee with the Internal Revenue Service, as required
by Section 6056 of the Internal Revenue Code.
(e) At any time the state revenue commissioner deems an audit of the
financial records and accounts of a charitable trust to be
necessary, the commissioner shall notify the trustee in writing, and
the audit shall immediately be undertaken by a certified public
accountant to be selected jointly by the commissioner and the
trustee. In the event agreement cannot be reached upon selection of
a certified public accountant within ten days of receipt by the
trustee of the notice provided for in this subsection, either party
may request the selection of a certified public accountant for such
purposes by the State Board of Accountancy. Expenses and fees
incurred in the preparation of an audit shall be deemed valid
expenses chargeable against the affected trust.
(f) The state revenue commissioner may investigate transactions and
relationships of the trustees of charitable trusts subject to this
Code section for the purpose of determining whether the property
held for charitable purposes is properly administered. The
commissioner may require any agent, trustee, fiduciary, beneficiary,
institution, association, corporation, or other person to appear at
a named time and place in the county designated by him, where the
person resides or is found, to give information under oath and to
produce books, memoranda, papers, documents of title, and evidence
of assets, liability, receipts, or disbursements in the possession
or control of the person ordered to appear.
(g) When the state revenue commissioner requires the attendance of
any person, as provided in subsection (f) of this Code section, the
commissioner shall issue an order setting forth the time when and
the place where attendance is required and shall cause the same to
be served in person or by registered or certified mail or statutory
overnight delivery upon the person at least 14 days before the date
fixed for attendance. The order shall have the same force and
effect as a subpoena and, upon application of the commissioner,
obedience to the order may be enforced by any court having
jurisdiction of charitable trusts in the county where the person
receiving it resides or is found, in the same manner as though the
notice were a subpoena. The court may, in case of contumacy or
refusal to obey the order issued by the commissioner, issue an order
requiring the person to appear before the commissioner or to produce
documentary evidence, if so ordered, or to give evidence touching
the matter in question; and any failure to obey the order of the
court may be punished by that court as a contempt upon itself. The
investigation or hearing provided for in subsection (f) of this Code
section may be made by or before a person designated by the
commissioner to conduct the investigation or hearing in his behalf.
Witnesses ordered to appear shall be paid the same fees and mileage
as are paid witnesses in the superior courts of this state. The
commissioner or his designated representative acting in his behalf
is empowered to administer the necessary oath or affirmation to
(h) The state revenue commissioner may institute appropriate
proceedings to secure compliance with this Code section, to correct
improper administration of a charitable trust, and to invoke the
jurisdiction of the court.
(i) The powers and duties of the state revenue commissioner provided
in this Code section are in addition to his existing powers and
duties. Nothing in this Code section shall impair or restrict the
jurisdiction of any court with respect to any of the matters covered
by it, except that no court shall have jurisdiction to modify or
terminate any charitable trust subject to this Code section unless
the state revenue commissioner is a party to the proceedings.
(j) This Code section shall not apply to any charitable trust which
holds property for religious purposes or any agent, officer,
director, trustee, or employee of any religious corporation sole or
other religious corporation.