Annual Financial Reporting Requirements for Pennsylvania Nonprofits
Updated: January 23, 2020
Annual Financial Reporting Requirements
Is your nonprofit organizations aware of Pennsylvania’s Solicitation of Funds for Charitable Purpose Act? If not, take a moment to read about the requirements. This laws contains important information regarding annual financial reports your organization must provide.
Pennsylvania’s annual financial reporting standards apply to many (but not all) nonprofit organizations that solicit funds in Pennsylvania. Entities with reporting requirements are:
- If you receive annual contributions up to $100,000, you must perform an optional compilation, review, or audit of financial statements.
- If you receive annual contributions between $100,000 and $249,999, you must perform a mandatory compliation, review, or audit of financial statements by an independent accountant.
- If you receive annual contributions between $250,000 and $749,000, you must perform a mandatory review or audit of financial statements by an independent accountant.
- If you receive annual contributions of $750,000 or more, you must perform a mandatory audit of financial statements by an independent accountant.
Does your nonprofit solicit for or receive donations outside of Pennsylvania? This is particularly important for nonprofits in border counties and those with a national presence. Even though your nonprofit may not meet a particular threshold for reporting, it might still be required to report in another state.
So, nonprofits must be aware of the financial reporting requirements of the other states in which you do business or solicit donations.
In a related matter, grantmakers and government grants require annual financial reports regardless of the Pennsylvania law reporting thresholds. This means nonprofits should carefully review their grant agreements to determine the level of financial reporting required.
Lastly, be sure to timely file your report. Don’t waste of money to prepare the report only to submit it after the deadline and incur late fees. In Pennsylvania, annual financial registration forms must be postmarked by the due date.
Did You Elect New Corporate Officers?
Nonprofits tend to elect new officers annually or bi-annully. In the excitement of being elected (or of getting off the executive board), don’t forget to report your changes to the state. ennsylvania nonprofit organizations must annually report changes to their corporate officers. Corporate officers are generally the Board of Director’s President, Vice-President, Secretary, and Treasurer, though some organizations can have additional officers.
Report changes in your officer positions on or before April 30th following the calendar year in which the change occurred. For example, if your corporate officers change in 2020, you must report this before April 30, 2021.
To comply with this law, visit the Pennsylvania Department of State website and obtain form DSCB:15-5110 (Annual Statement – Nonprofit Corporation). There is no fee to submit this form.