Legislation heads to Governor’s desk after unanimous approval in both chambers
Harrisburg, PA – The Pennsylvania House of Representatives today unanimously passed Senate Bill 1183, sending bipartisan legislation sponsored by Senators Nick Pisciottano (D-Allegheny) and Lynda Schlegel Culver (R-Columbia, Luzerne, Montour, Northumberland, Snyder) to Governor Shapiro’s desk for signature.
The legislation, which previously passed the Senate unanimously, modernizes financial reporting requirements for nonprofit organizations registered under Pennsylvania’s Solicitation of Funds for Charitable Purposes Act. It raises the thresholds that determine when charitable organizations must obtain an audit, review, or compilation of their financial statements from an independent certified public accountant. The current thresholds have remained unchanged since 2017.
“Nonprofit organizations provide essential services to communities across Pennsylvania, and we should be doing what we can to help them direct more of their resources toward those missions,” said Senator Pisciottano. “This legislation reduces unnecessary burdens on nonprofits and accounting professionals and maintains standards for transparency and accountability. I’m pleased to see it receive unanimous bipartisan support in both chambers.”
Senate Bill 1183 would update the annual contribution thresholds as follows:
- Organizations receiving $1 million or more in annual contributions would be required to obtain an audit, an increase from the current threshold of $750,000.
- Organizations receiving between $500,000 and $1 million in annual contributions would be required to obtain a review or audit, an increase from the current threshold of $250,000 to $750,000.
- Organizations receiving between $150,000 and $500,000 would be required to obtain a compilation, review, or audit, an increase from the current threshold of $100,000 to $250,000.
- Organizations receiving less than $150,000 in annual contributions would not be required to obtain a compilation, review, or audit, an increase from the current threshold of $100,000.
“State reporting requirements for charities should be designed to ensure transparency and protect donors in a manner that doesn’t impose an unnecessary burden that detracts from the charity’s mission,” Senator Culver said. “Nonprofits are critical to the delivery of services and assistance in our communities and this legislation updates reporting requirements so that they’re clear, reasonable and aligned with today’s costs.”
The updated thresholds would bring Pennsylvania’s reporting framework more in line with federal requirements and those of neighboring states, while helping to address workforce challenges facing the accounting profession.
The legislation is supported by the Pennsylvania Institute of Certified Public Accountants and the Pennsylvania Association of Nonprofit Organizations.