Greiner Bills to Revise Financial Reporting Requirements for Nonprofit Organizations Headed to Governor’s Desk
12/13/2017
HARRISBURG – By unanimous votes today, the Senate passed two bills, sponsored by Rep. Keith Greiner (R-Lancaster), which would provide nonprofit organizations with a clear financial reporting standard that is aligned with federal requirements.

“As a certified public accountant (CPA), I recognize the need for continuity in the way charitable organizations are measured and monitored,” said Greiner. “My legislation is an attempt to align state guidelines with requirements set forth by the federal government for audits of state and local governments and nonprofit organizations.”

Under current Pennsylvania law, once a charitable organization reaches annual contributions of $300,000 or more, it must file an audited financial statement prepared by an independent CPA or public accountant. House Bill 1420 raises the threshold of annual contributions for those organizations to $750,000 before it triggers the need for an audit by a CPA or public accountant.

Those receiving annual contributions of at least $250,000, but less than $750,000, will be required to have a review or audit; and those with annual contributions of at least $100,000, but less than $250,000, will be required to have a compilation, review, or audit. A compilation, review, or audit will be optional for any charitable organization that receives annual contributions of less than $100,000.

“The existing thresholds are extremely low in today’s marketplace,” said Greiner. “House Bill 1420 makes necessary and timely adjustments that provide some relief for struggling charities. My bill will enable these charities to adhere to financial reporting requirements while also maintaining a healthy cash flow.”

Greiner’s second bill, House Bill 1421, clarifies that any state registration form filed for charitable purposes will be timely filed if postmarked on or before the renewal date. Currently, registration statements are only considered timely filed if they are received before the renewal date. This bill also provides for a uniform 15-day review period for the Department of State’s Bureau of Corporations and Charitable Organizations.

Both bills are now awaiting the governor’s signature to become law.

Representative Keith J. Greiner, CPA
43rd Legislative District
Pennsylvania House of Representatives

Media Contact: Donna Pinkham
717.260.6452
dpinkham@pahousegop.com
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