The bill amends Section 5-53.1-4 of the General Laws concerning the reporting requirements for charitable organizations. It raises the threshold for financial reporting from an annual gross income of five hundred thousand dollars ($500,000) to one million dollars ($1,000,000). Charitable organizations with gross income at or below this new threshold can fulfill their reporting obligations by submitting either an IRS Form 990 or specific financial statements compiled by an independent accountant, which include a statement of activities and a statement of financial position. Additionally, the director may require audited financial statements from these organizations if there is reasonable cause to suspect a violation of the law.

The bill also introduces provisions for parent organizations of affiliates, allowing them to file a combined report that includes information about each affiliate's activities. This report must be certified under penalty of perjury and accompanied by a fee. Furthermore, the bill outlines the process for extending the due date for submitting financial information to align with IRS deadlines. Overall, the act aims to streamline the reporting process for smaller charitable organizations while ensuring compliance with financial oversight. The changes will take effect upon passage.

Statutes affected:
5562: 5-53.1-4