| Act 121 of 2006 Raised Charitable Audit Threshold to $300,000| On October 27, 2006, Governor Rendell signed House Bill 632 (PN4757) into law raising the audit triggering threshold for charities that receive contributions from the prior $125,000 per year to a higher $300,000 per year. Now, charities that receive contributions of more than $300,000 per year are required to perform an audit by an independent certified public accountant or public accountant. In addition, charities receiving contributions of between $100,000 and $300,000 must perform a “review or audit”. Charities receiving contributions of between $50,000 and $100,000 must perform a “compilation, review or audit”, and audit requirements for annual contributions of below $50,000 are optional. | | | | This bill enables smaller charities to direct more of their charitable dollars to programs and services, while preserving significant protections for the donor public. Act 121 will take effect after December 26, 2006 for all charities that operate on a fiscal calendar year ending on December 31. Charities with a reporting period not on the calendar year must wait until the next fiscal year to apply the new threshold. | | | | PANO, our members and our peer organizations worked very hard to achieve the passage of this legislation. We are pleased and proud to share this good news with you. |
| |
