Salisbury introduces bill to increase financial assessment thresholds for charitable organizations
Rep. Abigail Salisbury November 15, 2023 | 10:37 AM
HARRISBURG, Nov. 15 – State Rep. Abigail Salisbury, D-Allegheny, introduced legislation today that would raise the monetary threshold amount that subjects charitable organizations to more extensive financial oversight, including mandatory audits.
Among other things, Salisbury’s bill would raise the current threshold for a mandatory audit from $750,000 to $1 million, a move she said better reflects current day charitable donations.
“Increasing the monetary thresholds that trigger third-party audits or review would cut out red tape and help charitable organizations do what they were created to do – get dollars into the hands of people needing them,” said Salisbury, who serves as House Democratic chair of the Pennsylvania Charitable Nonprofit Caucus. “The current thresholds for subjecting organizations to greater regulation have not been reviewed since 2017, and it’s time to move the line to better reflect current day standards.”
Under H.B. 1824:
- Charitable organizations receiving annual contributions of $1 million or more would have to be audited by an independent certified public accountant. Under existing law, the audit requirement applies to organizations receiving $750,000 or more.
- Charitable organizations receiving annual contributions of at least $500,000 but less than $1 million would be required to have a review or audit of their financial statements performed by an independent certified public accountant. Under existing law, the review or audit requirement applies to organizations receiving at least $250,000 but less than $750,000.
- Charitable organizations receiving annual contributions of at least $150,000 but less than $500,000 would be required to have a compilation, review or audit of their financial statements performed by an independent certified public accountant. Under existing law, the compilation, review, or audit requirement applies to organizations receiving annual contributions of at least $100,000 but less than $250,000.
The bill – which is co-sponsored by state Rep. Keith Greiner, R-Lancaster – would also make the compilation, review or audit requirement optional for charitable organizations receiving annual contributions of less than $150,000 annually. Under existing law, the requirement is optional for organizations receiving less than $100,000.