Changes to Solicitation of Funds for Charitable Purposes Act under Act 71
Recently signed into Pennsylvania law, Act 71 increases the threshold for audits, reviews, and compilations of the financial statements required to be submitted by nonprofit organizations that are registered under the Charities Act in Pennsylvania.
The new thresholds for required financial reports are as follows, based on gross annual contributions received by nonprofit organizations:
- $750,000 or more – Audit
- $250,000 to less than $750,000 – Review
- $100,000 to less than $250,000 – Compilation
- Less than $100,000 – Internally prepared
Act 71 becomes effective for renewal registrations due February 15, 2018 (organizations with a fiscal year-end of March 31, 2017) and later. It is important to also check your contracts and by-laws for any additional required reporting as they may be different from the requirements for Pennsylvania.
Act 72, a companion piece of legislation, changes the due date requirement to be based on postmark date rather than the date received by the Bureau of Corporations and Charitable Organizations. The Charitable Organization Registration Statement (BCO-10) form was also updated in 2017 to be shorter and more user friendly.
Contact H2R CPA at 412-391-2920 or firstname.lastname@example.org for additional details, or if you have any questions regarding nonprofit reporting requirements in Pennsylvania. Our Nonprofit Services Group team members would be pleased to assist you.