Pennsylvania Senate backs charity reporting overhaul affecting Union County nonprofits

Senate Bill 1183 passed the Pennsylvania Senate on June 22 by a 50-0 vote. The measure would raise the audit threshold for charities to $1 million, changing how Union County nonprofits pay for accountants, prepare filings and present financial records to donors. For small community groups in Lewisburg, Mifflinburg and across Union County, the question is whether they still need a full audit or can use a less expensive review as annual contributions climb.

The measure was sponsored by Sen. Lynda Schlegel Culver, who represents the region, with Sen. Nick Pisciottano as a key co-sponsor.

The proposal would update reporting rules under Pennsylvania’s Solicitation of Funds for Charitable Purposes Act, the law that governs nonprofit fundraising filings across the state. Under current rules, charities that receive $750,000 or more in annual contributions must obtain an audit, while organizations taking in $250,000 to under $750,000 must file either a review or an audit. Groups with $100,000 to under $250,000 may submit a compilation, review or audit, and those below $100,000 have optional financial statements. SB 1183 would move the audit line to $1 million and set the review-or-audit range at $500,000 to under $1 million. That would leave smaller organizations with reporting duties and reduce the number of mid-sized charities pushed into the most expensive accounting work.

The Pennsylvania Department of State’s Bureau of Corporations and Charitable Organizations administers the charitable solicitation law and maintains registration and financial information on more than 16,000 charities soliciting in the commonwealth. Charities that solicit contributions from Pennsylvania residents generally must register unless they are excluded or exempted. The thresholds have not been updated since Act 71 of 2017 took effect on February 20, 2018. That law last changed the reporting levels after the Solicitation of Funds for Charitable Purposes Act was enacted in 1990 and became effective in 1991. The House will now decide whether those new thresholds become law.