Regulation .04 Criteria for Classification.
Regulation .04 Criteria for Classification.LinkCopy Citation
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.