PRINTER'S NO. 2049
No. 1614 Session of 1985
INTRODUCED BY GRUPPO, SEMMEL, MERRY, ARGALL, BOOK, HERMAN,
ROBBINS, TELEK, CIMINI AND CARLSON, JUNE 28, 1985
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 28, 1985
AN ACT
1 Amending the act of August 9, 1963 (P.L.628, No.337), entitled
2 "An act relating to charitable organizations; requiring the
3 registration of such organizations; and regulating the
4 solicitation of money and property by or on behalf of
5 charitable organizations," further providing for the audit
6 and review of financial statements.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 3(a)(6) of the act of August 9, 1963
10 (P.L.628, No.337), known as the Solicitation of Charitable Funds
11 Act, amended April 9, 1982 (P.L.319, No.90), is amended to read:
12 Section 3. Registration of Charitable Organizations.--(a)
13 Every charitable organization which intends to solicit
14 contributions within this Commonwealth, or have funds solicited
15 on its behalf, shall, prior to any solicitation, file a
16 registration statement with the department upon forms prescribed
17 by the commission, which shall be good for one full year and
18 which shall be refiled in the next and each following year in
19 which such charitable organization is engaged in solicitation
1 activities. It shall be the duty of the president, chairman or
2 principal officer of such charitable organization to file the
3 statements required under this act. Such statements shall be
4 sworn to and shall contain the following information:
5 * * *
6 (6) (i) A copy of the financial statements of the
7 charitable organization's immediately preceding fiscal year. If
8 the gross contributions of the organization exceeds [fifteen
9 thousand dollars ($15,000)] twenty-five thousand dollars
10 ($25,000), but is less than fifty thousand dollars ($50,000),
11 the financial statements shall be audited or reviewed by an
12 independent public accountant or an independent certified public
13 accountant. If the gross contributions of the organization
14 exceeds fifty thousand dollars ($50,000), the financial
15 statements shall be audited by an independent public accountant
16 or an independent certified public accountant. In the event that
17 the gross contributions of the organization is less than
18 [fifteen thousand dollars ($15,000)] twenty-five thousand
19 dollars ($25,000), the submission of an audit or review is
20 optional. The financial statements shall be completed in
21 accordance with the accounting standards set forth in the rules
22 and regulations promulgated by the commission.
23 (ii) Government audits of government grants shall be
24 accepted and shall be included as part of the financial
25 statements.
26 (iii) The commission shall have the discretion to require
27 that an audit or review be submitted by any charitable
28 organization which files a registration statement. The
29 commission shall have the discretion to accept the financial
30 statements submitted by the organization in lieu of the audit or
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1 review in the event that special facts and circumstances are
2 presented.
3 (iv) For purposes of this clause all audits shall be
4 performed in accordance with the American Institute of Certified
5 Public Accountants Statements on auditing standards and reviews
6 shall be the same as and performed in accordance with the
7 standards and procedures set forth in the American Institute of
8 Certified Public Accountants Statement on Standards for
9 Accounting and Review Services.
10 * * *
11 Section 2. This act shall take effect in 60 days.
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