Financial statements of registered charitable organizations

1. If the charitable organization received contributions of more than $300,000 but not more than $500,000 in the previous fiscal year, a reviewed financial statement, prepared in accordance with generally accepted accounting principles (GAAP) and reviewed by an independent certified public accountant (CPA).

2. If the charitable organization received contributions of more than $500,000 in the previous fiscal year, an audited financial statement, prepared in accordance with GAAP and including the opinion of an independent CPA.

This bill increases these threshold amounts. Under the bill, a reviewed financial statement is required if the charitable organization received contributions in the previous fiscal year of more than $500,000 but not more than $1,000,000. An audited financial statement is required if the contributions exceeded $1,000,000.

Current law also allows DFI, upon application, to grant a charitable organization a waiver of the requirement to file financial information with its annual report. A waiver may be granted if the charitable organization received contributions in each of the past three fiscal years of less than $100,000, but during the fiscal year for which the waiver is requested the charitable organization received contributions from one contributor exceeding $200,000 or $400,000, respectively.

The bill also increases the threshold amounts applicable for DFI's waiver.

Under the bill, a waiver may be granted if the charitable organization received contributions in each of the past three fiscal years of less than $300,000, but during the fiscal year for which the waiver is requested the charitable organization received contributions from one contributor exceeding $200,000 or $700,000, respectively.