Legislation Quick Search
02/26/2020 08:59 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20190&cosponId=30244
Share:
Home / House Co-Sponsorship Memoranda

House Co-Sponsorship Memoranda

By Member | By Date | Keyword Search


House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: September 9, 2019 12:52 PM
From: Representative Dan Moul and Rep. Dawn W. Keefer
To: All House members
Subject: Solicitation of Funds for Religious Institutions, Volunteer Fire Companies, and Senior Centers
 
In the near future, we will be introducing legislation to amend the “Solicitation of Funds for Charitable Purposes Act” to ease the regulatory and financial burden this statute imposes on our charitable organizations, such as volunteer fire companies and senior centers.
This Act requires charitable organizations soliciting contributions to annually register with the Department of State’s Bureau of Charitable Organizations, unless they are exempt as provided for under the Act. To be exempt from registration, all fundraising activities must be carried out by members or volunteers of the charitable organization.

Furthermore, the act requires the filing of a financial report, which must be independently audited, reviewed or compiled by a public accountant or certified public accountant. The amount of money received from solicitations determines the extent of the audit required, which can very easily run into several thousands of dollars.

The use of a 3rd party professional fundraiser for something as simple as preparing “mailers” automatically triggers the requirement for an independent audit or review of financial statements. In my view, this is an unnecessary and costly mandate on these charitable groups, especially when the act already requires the charitable organizations to submit their financial statements along with their annual registrations.
Our legislation will relieve these charitable organizations by exempting them from the audit requirements regardless of whether or not they utilize a 3rd party fundraiser, that only handles such tasks as mailers and the money received goes directly from the contributor to the charitable organization. In addition, our proposal will reduce the outrageous fines that are currently imposed under the act that can profoundly hurt our volunteer organizations financially.
Please consider sponsoring this legislation.


In the near future, we will be introducing legislation to amend the “Solicitation of Funds for Charitable Purposes Act” to ease the regulatory and financial burden this statute imposes on our charitable organizations, such as volunteer fire companies and senior centers.
This Act requires charitable organizations soliciting contributions to annually register with the Department of State’s Bureau of Charitable Organizations, unless they are exempt as provided for under the Act. To be exempt from registration, all fundraising activities must be carried out by members or volunteers of the charitable organization.

Furthermore, the act requires the filing of a financial report, which must be independently audited, reviewed or compiled by a public accountant or certified public accountant. The amount of money received from solicitations determines the extent of the audit required, which can very easily run into several thousands of dollars.

The use of a 3rd party professional fundraiser for something as simple as preparing “mailers” automatically triggers the requirement for an independent audit or review of financial statements. In my view, this is an unnecessary and costly mandate on these charitable groups, especially when the act already requires the charitable organizations to submit their financial statements along with their annual registrations.
Our legislation will relieve these charitable organizations by exempting them from the audit requirements regardless of whether or not they utilize a 3rd party fundraiser, that only handles such tasks as mailers and the money received goes directly from the contributor to the charitable organization. In addition, our proposal will reduce the outrageous fines that are currently imposed under the act that can profoundly hurt our volunteer organizations financially.

Please consider sponsoring this legislation.




Introduced as HB1826