Charitable Organizations Updated Audit Requirements

Published On: October 16th, 2023Categories: Business Technology, Business Technology Newsletter, Cyber Security, Individual

In June, we discussed proposed changes that would impact charitable organizations. The Illinois Attorney General, Kwame Raoul, officially posted the notice below for Public Act 103-0121 (formerly House Bill 1197).

Effective January 1st, 2024, this act requires that all charitable organizations that fundraise solely by staff and volunteers and receive contributions of $500,000 or more must complete an Audit with their Annual Report. This is an increase from the previous threshold of $300,000.

Additionally, all charitable organizations that fundraise solely by staff and volunteers and receive contributions of more than $300,000 but less than $500,000 will be required to file Reviewed Financial Statements with their Annual Report. Organizations falling within this threshold will not be required to file an Audit.

Complete details can be found below in the official notice. Please do not hesitate to contact us if you have questions about whether these changes impact your non-profit organization.

About the Author: Cheryden Juergensen

Cheryden Juergensen, CPA, has been with Eccezion since 2002, earning Partner status in 2013. An audit specialist with nearly 20 years of experience, she researches new auditing standards and implementation, and serves as the firm’s quality control partner, ensuring that the team follows proper procedures in all financial statements. “I work with our non-profits and governmental clients, but also several small businesses,” she explains.