Important changes to the PA Solicitation of Funds for Charitable Purposes Act.
Governor Wolf signed two bills into law on December 22,2017. Both Acts amend the Solicitation of Funds for Charitable Purposes Act (Charities Act) to affect several important Bureau processes. Both Acts become effective in 60 daysfrom the date they are signed by the Governor, which is February 20, 2018.
Act 71(HB 1420) amends the Charities 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.
An audit of the financial records of a registered charitable organization by an independent certified public accountant or public accountant is not required until the gross annual contributions meet or exceed $750,000 (audit threshold was previously $300,000). Charitable organizations which receive annual contributions of at least $250,000, but less than $750,000, will be required to have a review or audit of their financial statements performed by an independent certified public accountant or public accountant. Lastly, charitable organizations which receive annual contributions of at least $100,000, but less than $250,000, are required to have a compilation, review or audit of their financial statements performed by an independent certified public accountant or public accountant. A compilation, audit or review is optional for any charitable organization which receives annual contributions of less than $100,000
A bill amending section 713(f) of the Not-for-Profit Corporation Law (N-PCL) was signed by the Governor on October 26, 2015. That section of the N-PCL prohibits an employee from serving as the chair of the board of a not-for-profit corporation. The bill extended the effective date of N-PCL section 713(f) from January 1, 2016 to January 1, 2017. The text of the bill is posted here