PA Senate Passes Bill To Update Nonprofit Audits

The Pennsylvania Senate this week unanimously passed bipartisan legislation to update financial reporting requirements for nonprofit organizations. The bill was sponsored by Senators Nick Pisciottano, a Democrat from Allegheny County and Lynda Schegel Culver, a Republican from Luzerne County. The lawmakers say the bill raises the thresholds that determine when charitable organizations must obtain an audit, review, or compile their financial statements from an independent certified public accountant. Pennsylvania’s current thresholds have not been updated since 2017. With the bill, organizations receiving $1 million or more in annual contributions would be required to obtain an audit. That amount is up from the current threshold of $750,000. The new legislation would also fine tune audit reviews for charities that receive more than $100,000 in funds. The Senators say the changes ensure transparency and protect donors.