A bill that was signed by Governor Wolf on December 22, 2017 amended the Charities Act raising the contribution thresholds for requiring audited, reviewed or compilated financial reports.
The new thresholds are:
- Annual contributions in excess of $750,000 requires audited financial statements (previously $300,000).
- Annual contributions between $250,000 and $750,000 require, at a minimum, reviewed financial statements (previously $100,000 and $3000,00).
- Annual contributions between $100,000 and $250,000 require, at a minimum, compiled financial statements (previously $50,000 and $100,000).
- Annual contributions less than $100,000, a compilation, review or audit is optional (previously $50,000).
Due to the generosity of the state, the new thresholds have been made “retroactive”. Therefore, all BCO-10 filings going forward should apply the new thresholds.
Please note that these changes are for Pennsylvania registrations (BCO-10). If your organization also solicits in other states that also requires a registration, be sure you are aware of financial statement requirements for those states (e.g., New Jersey’s audit threshold is $500,000).
If you have questions about this, please call an Isdaner & Company professional at 610.668.4200.