HARRISBURG – Sen. Lynda Schlegel Culver (R-27) announced today that the Senate State Government Committee approved Senate Bill 1183, bipartisan legislation she is co-prime sponsoring with Sen. Nick Pisciottano (D-45) to update Pennsylvania’s charitable financial reporting requirements.
The bill would modernize audit, review and compilation thresholds for registered charitable organizations under the Solicitation of Funds for Charitable Purposes Act. These thresholds have not been updated since 2017.
“Nonprofit organizations do important work in communities across Pennsylvania, and state requirements should be clear, reasonable and aligned with today’s costs,” Culver said. “Senate Bill 1183 maintains financial transparency while reducing unnecessary administrative hurdles for smaller and mid-sized organizations.”
Senate Bill 1183 would update the level of financial review required for charitable organizations based on the amount of annual contributions they receive.
Charitable organizations that receive annual contributions of $1 million or more would be required to obtain an audit by an independent CPA, an increase from the current $750,000 threshold.
Organizations receiving at least $500,000 but less than $1 million would have the option to obtain either a review or an audit, a change from the current range of $250,000-$750,000.
Charitable organizations receiving at least $150,000 but less than $500,000 would have the option to obtain a compilation, review, or audit, compared to the current range of $100,000-$250,000.
Organizations receiving less than $150,000 in annual contributions would not be required to obtain a compilation, review, or audit, compared to the current threshold of less than $100,000.
The bill is supported by the Pennsylvania Institute of Certified Public Accountants and the Pennsylvania Association of Nonprofit Organizations.
The bill now heads to the full Senate for consideration.