Annual Reporting Requirements for Penna. Charities

Annual Financial Reporting Requirements

Nonprofit organizations need to be aware of Pennsylvania’s Solicitation of Funds for Charitable Purpose Act. This Act contains important annual financial reporting standards.

These standards apply to many (but not all) nonprofit organizations that solicit funds in Pennsylvania. They 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.

Despite these thresholds, nonprofits must also review the financial review and reporting requirements of the other states in which they do business (or in which they receive donations). Additionally, some funding sources (especially grantmakers and government grants) require annual financial reports. In short, review your grant agreements and other state laws to determine the level of financial reporting required.

Lastly, be sure to timely file your report. It is a waste of money to prepare the report only to submit it after the deadline and incur late fees. The Solicitation of Funds for Charitable Purposes Act considers annual registration forms to be timely if postmarked by the due date.

Reporting When Your Corporate Officers and Directors Change

Pennsylvania 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.

Changes must be reported on or before April 30th following the calendar year in which the change occurred. For example, if your corporate officers change in 2019, you must report this before April 30, 2020.

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.

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