In late December, Governor Wolf signed two bills in to law that effect the Charities Act. Both these bills have an effective date of February 20, 2018 and the details of the changes are:
- Act 71 clarifies that the postmark date will determine if the annual PA BCO registration statements have been filed in a timely manner rather than the receipt date. This clarification will be applied to filings due February 15, 2018 and forward.
- Act 72 changes the thresholds utilized by the state to determine if a registered charitable organization is required to have an audit, review or compilation of its financial records by an independent CPA or Public Accountant. The threshold to require an audit is now raised to meet or exceed $750,000 in gross annual contributions (threshold was formerly $300,000). If an organization receives at least $250,000, but less than $750,000, they are required to have a review at a minimum but may have an audit completed. Charitable organization that receive at least $100,000, but less than $250,000 are required to have at least a compilation, but may have an audit or review completed. Organizations receiving less than $100,000 in gross annual contributions are not required to complete a compilation, review or audit, but they are optional.
It is recommended that each organization review the new contribution thresholds to determine the type of financial services will best fit their needs.