"Fundraising costs." Those costs incurred in inducing others
to make contributions to a charitable organization for which the
contributors will receive no direct economic benefit.
Fundraising costs normally include, but are not limited to,
salaries, rent, acquiring and maintaining mailing lists,
printing, mailing and all direct and indirect costs of
soliciting, as well as the cost of unsolicited merchandise sent
to encourage contributions. Fundraising costs do not include the
direct cost of merchandise or goods sold or the direct cost of
fundraising dinners, bazaars, shows, circuses, banquets,
dinners, theater parties or any other form of benefit
performances. This term may not include any costs or fundraising
activities associated with the use of a professional fundraising
counsel by a charitable organization.
* * *
Section 2. Sections 5(f), 9(l) and 17(b)(3) of the act are
amended to read:
Section 5. Registration of charitable organizations; financial
reports; fees; failure to file.
* * *
(f) Audit of certain financial reports.--[The] Except as
provided under section 9(l), the financial report of every
charitable organization which receives annual contributions of
$750,000 or more shall be audited by an independent certified
public accountant or public accountant. Every charitable
organization which receives annual contributions of at least
$250,000, but less than $750,000, shall be required to have a
review or audit of their financial statements performed by an
independent certified public accountant or public accountant.
Every charitable organization which receives annual
20190SB0879PN1236 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30