Two Important Changes to the Pennsylvania Solicitation of Funds for Charitable Purposes Act
On December 22, 2017, Governor Wolf signed two bills that provide needed updates to the Pennsylvania Solicitation of Funds for Charitable Purposes Act.
Act 71 (HB 1420) raises the thresholds for an audit, review, or compilation of the financial statements required to be submitted along with their annual registration statement to Bureau of Corporations and Charitable Organizations (the “Bureau”). The audit threshold will now align with the threshold for audits of federal awards under the Uniform Guidance and lessen the audit burden for certain nonprofit organizations.
The revised thresholds are as follows and are based on an organization’s gross annual contributions:
| Financial Statement Type | Current | Revised |
| Audit | $300,000 or more | $750,000 or more |
| Audit or Review | $100,000 to less than $300,000 | $250,000 to less than $750,000 |
| Audit, Review, or Compilation | $50,000 to less than $100,000 | $100,000 to less than $250,000 |
| Audit, Review, Compilation, or Internally Prepared | Less than $50,000 | Less than $100,000 |
Act 72 (HB 1421) clarifies the filing deadline of the annual registration statement, aligning the Bureau’s position with that of the Internal Revenue Service. The annual registration statement must be filed annually based on the postmark date, not the date received at the Bureau’s office, as previously required. For example, if a statement is due on November 15, 2018, it must be postmarked by that date.
The effective date for both Acts is 60 days from the date they were signed by Governor Wolf, which is February 20, 2018. The Bureau has indicated that the revised thresholds and due date requirements will be applied to all registration renewals due February 15, 2018 (fiscal year end March 31, 2017) and to all subsequent renewals and new registrations for all other fiscal year ends received after February 20, 2018.
More information from the Bureau of Corporations and Charitable Organizations can be found here: http://www.dos.pa.gov/BusinessCharities/Charities/Pages/default.aspx
If you have any questions about these changes, or for more information, we encourage you to contact one of our nonprofit practice leaders: Gary Dubas, Partner at gdubas@macpas.com and Jim Shellenberger, Principal at jshellenberger@macpas.com.
