HARRISBURG – This week the Senate approved bipartisan legislation sponsored by Sen. Lynda Schlegel Culver of Columbia, Luzerne, Montour, Northumberland, and Snyder Counties and Sen. Nick Pisciottano from Allegheny County to update charitable financial reporting requirements to better reflect the resources of nonprofits. Senate Bill 1183 would update the level of financial review required for charitable organizations based on the amount of annual contributions they receive. The thresholds have not been updated since 2017. Under the measure, charitable organizations that receive annual contributions of $1 million or more would be required to obtain an audit by an independent CPA, an increase from the current $750,000 threshold.
Organizations receiving at least $500,000 but less than $1 million would have the option to obtain either a review or an audit, a change from the current range of $250,000-$750,000.
Charitable organizations receiving at least $150,000 but less than $500,000 would have the option to obtain a compilation, review, or audit, compared to the current range of $100,000-$250,000. Organizations receiving less than $150,000 in annual contributions would not be required to obtain a compilation, review, or audit, compared to the current threshold of less than $100,000. The bill is supported by the Pennsylvania Institute of Certified Public Accountants and the Pennsylvania Association of Nonprofit Organizations. It now heads to the House of Representatives for consideration.
