In the near future, we plan to introduce legislation to amend the Solicitation of Funds for Charitable Purposes (SFCP) Act to raise the thresholds for an audit, review or compilation of the financial reports required to be submitted by charitable organizations that are registered under the Charities Act. The thresholds have not been increased since 2017.

Specifically, our legislation will require every charitable organization which receives annual contributions of $1 million or more to be audited by an independent certified public accountant. The current threshold is $750,000. This update will bring Pennsylvania in line with neighboring states like New York, New Jersey, and Connecticut.

Charitable organizations which receive annual contributions of at least $500,000, but less than $1 million, will be required to have a review or audit of their financial statements performed by an independent certified public accountant.

Charitable organizations which receive annual contributions of at least $150,000, but less than $500,000, shall be required to have a compilation, review or audit of their financial statements performed by an independent certified public accountant.

A compilation, audit or review will be optional for any charitable organization which receives annual contributions of less than $150,000.

These updates will provide nonprofit organizations with a clear financial reporting standard that is aligned with federal requirements and will reduce the burden on certified public accountants, who are already facing a workforce pipeline issue.

This bill is a companion to House Bill 965 introduced by Representative Salisbury, and we ask you to please join us in co-sponsoring this important legislation.