HARRISBURG – Sen. Lynda Schlegel Culver (R-27) and Sen. Nick Pisciottano (D-45) introduced SB 1183 to modernize Pennsylvania’s charitable financial reporting requirements by updating audit and review thresholds under the Solicitation of Funds for Charitable Purposes Act.
“Nonprofit organizations are essential to communities across the Commonwealth, and we want state requirements that are clear, reasonable, and aligned with today’s costs,” said Culver. “This legislation maintains strong financial transparency while reducing unnecessary administrative hurdles.”
Senator Pisciottano noted the importance of updating these outdated requirements and the need for financial reporting standards that reflect current financial realities.
“This bipartisan legislation modernizes audit thresholds to provide clarity and align state requirements with federal standards, while easing unnecessary burdens on small and mid-sized nonprofits so they can focus on their mission and the people they serve,” said Senator Pisciottano.
SB 1183 would raise the thresholds that determine whether a registered charitable organization must obtain an audit, review, or compilation performed by an independent certified public accountant (CPA). Key provisions include:
- $1 million or more in annual contributions: Audit required (current audit threshold is $750,000)
- $500,000 to under $1 million: Review or audit required
- $150,000 to under $500,000: Compilation, review, or audit required
- Under $150,000: No required compilation, review, or audit
The bill would provide nonprofits with a clearer financial reporting standard and aligns Pennsylvania’s thresholds more closely with neighboring states such as New York, New Jersey, and Connecticut.
The effort is supported by the Pennsylvania Institute of Certified Public Accountants and the Pennsylvania Association of Nonprofit Organizations, which note that rising audit costs and ongoing CPA workforce shortages can create challenges for nonprofits and accounting professionals alike. The updated thresholds would provide relief for smaller organizations while maintaining appropriate oversight and accountability.
SB 1183 will soon be referred to a senate committee for consideration.
Contact:
Sam Clepper