AB 912

This bill makes changes relating to registration and reporting requirements

applicable to charitable organizations.

Under current law, a charitable organization that solicits, or has solicited on its

behalf, contributions in this state must register with the Department of Financial

Institutions, unless an exception applies. With its initial application for registration

and with each annual report, a charitable organization must provide financial

information for the previous fiscal year if the charitable organization meets a certain

contribution threshold (except that all dollar amounts below are subject to DFI's

adjustment for inflation). Financial information must be provided as follows:

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.