Important: NYS Charities Bureau effective date for new audit/review requirement thresholds

"The new filing thresholds will be applied to organizations whose annual financial reports are due on or after July 1, 2014, whether the date due is the initial filing deadline or an extended deadline. "

The Nonprofit Revitalization Act's New Annual Filing Requirements Link here

On December 18, 2013, the Nonprofit Revitalization Act of 2013, proposed by the Attorney General, was enacted. The Act made the first significant changes to the Not-for-Profit Corporation Law ("N-PCL") in decades. It includes reforms that reduce burdens to nonprofits and enhance governance and oversight of nonprofits. The Act is based on recommendations made to the Attorney General in the February 2012 report of the Leadership Committee on Nonprofit Revitalization, which he convened to identify ways to reduce burdens on nonprofits and enhance New York's nonprofit sector.

Among the provisions that reduce burdens on nonprofits are sections of the Act that raise the revenue thresholds that trigger the requirement to file an independent certified public accountant's audit or review report. Revenue thresholds requiring an audit will, over the next seven years, be raised from $250,000 to $1,000,000. This change will result in significant savings to organizations that previously were required to file audits.

The new filing thresholds will be applied to organizations whose annual financial reports are due on or after July 1, 2014, whether the date due is the initial filing deadline or an extended deadline. Please consult our instructions for information on how to request an extension.

 

 

Attorney General Eric Schneiderman 
Charities Bureau 
Guidance Document 2014-1 
Issue date: April 15, 2014 
 
Guidance on Provisions of the Nonprofit Revitalization Act of 2013 
Revised CPA Review and Audit Thresholds and Annual Filing Fees for 7A or DUAL Filers 
 
The Nonprofit Revitalization Act of 2013, proposed by Attorney General Eric T. Schneiderman and 
based on recommendation of the Leadership Committee for Nonprofit Revitalization he formed, 
becomes effective on July 1, 2014. The Act changed the filing requirements and filing fees mandated 
by Article 7-A of the Executive Law, exempting smaller organizations from the requirement to file a 
CPA's audit or review report and financial statements. This change affects certain organizations 
registered with the Charities Bureau to solicit contributions in New York pursuant to Article 7-A of 
the Executive Law and required to file either an independent Certified Public Accountant's review or 
audit with their financial statements because their revenue exceeds the thresholds described in the 
charts below. Organizations required to register under Article 7-A are categorized by the Charities 
Bureau as “7A” or “DUAL” organizations. To find the registration category of a particular 
organization, please consult our searchable Charities Bureau Registry. 
 
7A and DUAL organizations are required to file their annual financial reports and pay an annual 
filing fee within four and one-half months after the end of their fiscal year unless the filing date has 
been extended. For example, if an organization's fiscal year ended on December 31, 2013, it must 
file its annual report by May 15, 2014 unless it has requested an extension of time to file. The 
Charities Bureau typically will grant an extension of up to six months, in which case an organization 
whose fiscal year ended on December 31, 2013 will have until November 15, 2014 to file its report. 
Visit our website www.CharitiesNYS.com to review instructions for requesting an extension of time 
to file and forms and instructions for filing annual reports. 
 
The Act raised the revenue thresholds requiring registered organizations to file either an independent 
Certified Public Accountant’s ("CPA") review or audit report. Those thresholds are based on the 
organization's gross revenue and support during the reporting year, which includes all income received 
by the organization from any source, including contributions, grants, fees and other types of revenues. 
 
An audit of financial statements is performed by a CPA to determine whether the organization has 
appropriately reported its financial activities in accordance with a prescribed method of accounting 
(e.g., generally accepted accounting principles). An audit includes performing procedures to obtain 
evidence about the amounts and disclosures in the financial statements, assessing the risks of material 
misstatements in the financial statements, and considering internal controls relevant to the preparation 
and fair presentation of the financial statements. Financial statements typically consist of the 
statement of financial position (balance sheet), statement of activities, statement of functional 
expenses (if applicable), statement of cash flows, and notes to financial statements. 
 
A review of financial statements performed by a CPA involves the performance of analytical tests to 
the financial data as well as inquiries of personnel in order to obtain limited assurance that there are 
no material modifications that should be made to the financial statements in order for them to be in 
conformity with a prescribed method of accounting (e.g., generally accepted accounting principles). 
It does not include audit procedures such as assessing fraud risk or testing records, and accordingly is 
a lesser level of assurance than an audit.  2
The newly enacted thresholds and the annual filing fees are as follows: 
 
Requirements for annual reports with an original or extended filing due date before July 1, 2014 are 
unchanged: 
 
Gross Revenue and Support CPA Audit or CPA Review 7A Fee 
Up to $100,000 No Audit or Review Required $10 
At least $100,000 but not more than $250,000 CPA Review $10 
More than $250,000 CPA Audit $25 
 
Thresholds applicable to annual reports with an original or extended filing due date between July 1, 
2014 and June 30, 2017: 
 
Gross Revenue and Support CPA Audit or CPA Review 7A Fee 
Up to $250,000 No Audit or Review Required $25 
At least $250,000 but not more than $500,000 CPA Review $25 
More than $500,000 CPA Audit $25 
 
Thresholds applicable to annual reports with an original or extended filing due date between July 1, 
2017 and June 30, 2021: 
 
Gross Revenue and Support CPA Audit or CPA Review 7A Fee 
Up to $250,000 No Audit or Review Required $25 
At least $250,000 but not more than $750,000 CPA Review $25 
More than $750,000 CPA Audit $25 
 
Thresholds applicable to annual reports with an original or extended filing due date on or after July 1, 
2021: 
 
Gross Revenue and Support CPA Audit or CPA Review 7A Fee 
Up to $250,000 No Audit or Review Required $25 
At least $250,000 but not more than 
$1,000,000 
CPA Review $25 
More than $1,000,000 CPA Audit $25 
 
 
 
 
 
 
  3
For More Information
The Charities Bureau works for New York citizens to prevent fraudulent, deceptive, and unfair 
practices by charities and to provide information to charities and other nonprofits to assist them in 
complying with governing law. To file a complaint, use our complaint form or send an email to 
charities.complaints@ag.ny.gov. To get free information on charities issues, visit 
www.CharitiesNYS.com or send an email to charities.bureau@ag.ny.gov. 
Your Opportunity to Comment 
 
The Charities Bureau collects comments from charities, advisors, advocates, and citizens about 
compliance and enforcement activities. To comment, send an email to charities.bureau@ag.ny.gov or 
contact us by mail addressed to: 
 
Assistant Attorney General Karin Kunstler Goldman 
Charities Bureau 
120 Broadway - 3
rd
 Floor 
New York, NY 10271

Attorney General Eric Schneiderman Charities Bureau Guidance Document 2014-1 Issue date: April 15, 2014  Guidance on Provisions of the Nonprofit Revitalization Act of 2013 Revised CPA Review and Audit Thresholds and Annual Filing Fees for 7A or DUAL Filers  The Nonprofit Revitalization Act of 2013, proposed by Attorney General Eric T. Schneiderman and based on recommendation of the Leadership Committee for Nonprofit Revitalization he formed, becomes effective on July 1, 2014. The Act changed the filing requirements and filing fees mandated by Article 7-A of the Executive Law, exempting smaller organizations from the requirement to file a CPA's audit or review report and financial statements. This change affects certain organizations registered with the Charities Bureau to solicit contributions in New York pursuant to Article 7-A of the Executive Law and required to file either an independent Certified Public Accountant's review or audit with their financial statements because their revenue exceeds the thresholds described in the charts below. Organizations required to register under Article 7-A are categorized by the Charities Bureau as “7A” or “DUAL” organizations. To find the registration category of a particular organization, please consult our searchable Charities Bureau Registry.  7A and DUAL organizations are required to file their annual financial reports and pay an annual filing fee within four and one-half months after the end of their fiscal year unless the filing date has been extended. For example, if an organization's fiscal year ended on December 31, 2013, it must file its annual report by May 15, 2014 unless it has requested an extension of time to file. The Charities Bureau typically will grant an extension of up to six months, in which case an organization whose fiscal year ended on December 31, 2013 will have until November 15, 2014 to file its report. Visit our website www.CharitiesNYS.com to review instructions for requesting an extension of time to file and forms and instructions for filing annual reports.  The Act raised the revenue thresholds requiring registered organizations to file either an independent Certified Public Accountant’s ("CPA") review or audit report. Those thresholds are based on the organization's gross revenue and support during the reporting year, which includes all income received by the organization from any source, including contributions, grants, fees and other types of revenues.  An audit of financial statements is performed by a CPA to determine whether the organization has appropriately reported its financial activities in accordance with a prescribed method of accounting (e.g., generally accepted accounting principles). An audit includes performing procedures to obtain evidence about the amounts and disclosures in the financial statements, assessing the risks of material misstatements in the financial statements, and considering internal controls relevant to the preparation and fair presentation of the financial statements. Financial statements typically consist of the statement of financial position (balance sheet), statement of activities, statement of functional expenses (if applicable), statement of cash flows, and notes to financial statements.  A review of financial statements performed by a CPA involves the performance of analytical tests to the financial data as well as inquiries of personnel in order to obtain limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with a prescribed method of accounting (e.g., generally accepted accounting principles). It does not include audit procedures such as assessing fraud risk or testing records, and accordingly is a lesser level of assurance than an audit.  2The newly enacted thresholds and the annual filing fees are as follows:  Requirements for annual reports with an original or extended filing due date before July 1, 2014 are unchanged:  Gross Revenue and Support CPA Audit or CPA Review 7A Fee Up to $100,000 No Audit or Review Required $10 At least $100,000 but not more than $250,000 CPA Review $10 More than $250,000 CPA Audit $25  Thresholds applicable to annual reports with an original or extended filing due date between July 1, 2014 and June 30, 2017:  Gross Revenue and Support CPA Audit or CPA Review 7A Fee Up to $250,000 No Audit or Review Required $25 At least $250,000 but not more than $500,000 CPA Review $25 More than $500,000 CPA Audit $25  Thresholds applicable to annual reports with an original or extended filing due date between July 1, 2017 and June 30, 2021:  Gross Revenue and Support CPA Audit or CPA Review 7A Fee Up to $250,000 No Audit or Review Required $25 At least $250,000 but not more than $750,000 CPA Review $25 More than $750,000 CPA Audit $25  Thresholds applicable to annual reports with an original or extended filing due date on or after July 1, 2021:  Gross Revenue and Support CPA Audit or CPA Review 7A Fee Up to $250,000 No Audit or Review Required $25 At least $250,000 but not more than $1,000,000 CPA Review $25 More than $1,000,000 CPA Audit $25         3For More InformationThe Charities Bureau works for New York citizens to prevent fraudulent, deceptive, and unfair practices by charities and to provide information to charities and other nonprofits to assist them in complying with governing law. To file a complaint, use our complaint form or send an email to charities.complaints@ag.ny.gov. To get free information on charities issues, visit www.CharitiesNYS.com or send an email to charities.bureau@ag.ny.gov. Your Opportunity to Comment  The Charities Bureau collects comments from charities, advisors, advocates, and citizens about compliance and enforcement activities. To comment, send an email to charities.bureau@ag.ny.gov or contact us by mail addressed to:  Assistant Attorney General Karin Kunstler Goldman Charities Bureau 120 Broadway - 3rd Floor New York, NY 10271