Bill > H5562

This bill amends existing law to increase the gross income threshold for charitable organizations' financial reporting requirements from $500,000 to $1,000,000. Under the revised law, charitable organizations with annual gross income of $1,000,000 or less can now satisfy their financial reporting obligations by submitting either an IRS Form 990 (a standard tax form for tax-exempt organizations) or two specific financial statements compiled by an independent public or certified accountant: a statement of activities and a statement of financial position. The bill maintains the director's ability to request more detailed audited financial statements for organizations under the $1,000,000 threshold if there is reasonable cause to believe a violation has occurred. The change aims to reduce administrative burden on smaller charitable organizations by providing more flexible reporting options while still maintaining oversight of their financial activities. The bill will take effect immediately upon passage.

Budget and Finance, Business and Industry

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