Pennsylvania Nonprofit Audit Requirement Thresholds Raised

On December 22, 2017, Governor Wolf signed Act 71 of 2017 (House Bill 1420) into law, amending the Pennsylvania Solicitations of Funds for Charitable Purposes Act by raising the threshold of annual contributions required to trigger an audit.

Beginning in February of 2018, nonprofits receiving annual contributions of $750,000 or more require an audit.  Nonprofits receiving annual contributions of at least $250,000, but less than $750,000, will be required to have a review or an audit.  And nonprofits receiving annual contributions of at least $100,000, but less than $250,000, will be required to have a compilation, review, or audit. A compilation, review, or audit will be optional for any charitable organization that receives annual contributions of less than $100,000.

A companion bill, Act 72 (House Bill 1421), also signed into law on December 22, 2017, pertains to timely filing of Pennsylvania charitable registration forms, clarifying that any state registration form filed for charitable purposes will be timely filed if postmarked on or before the renewal date. Currently, registration statements are only considered timely filed if they are received before the renewal date. This bill also provides for a uniform 15-day review period for the Department of State's Bureau of Corporations and Charitable Organizations.