1. (a) “Not-for-profit organization” means a private corporation under the Arkansas Nonprofit Corporation Act, Arkansas Code § 4-28-201 et seq., that is an exempt organization as described in section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), and that:

   1. (1) Has a benevolent, philanthropic, patriotic, or charitable purpose; and
   2. (2) Performs a function that would be performed at the public expense if it were not performed by the organization.

2. (b)

   1. (1) “Lease” means a transfer of the right to possession and use of surplus commodities, for a specified term length not to exceed a seven-year period, for a monetary fee or other consideration, while retaining ownership and title in the surplus commodities.
   2. (2) Monetary fees or other consideration may not be nominal.
3. (c) “Donation”, as used in 19 CAR § 1-606(h), means a transfer of ownership and title in surplus commodities for no monetary fees or consideration.

Codification Notes: This section was promulgated as R3:19-11-242 of the Procurement Rules prior to codification into the Code of Arkansas Rules.