NY Nonprofit Revitalization Act: New Financial Reporting Rules

New York has a new series of financial reporting rules under the Nonprofit Revitalization Act (NPRA). This law took effect July 1, 2014, and affects nearly every nonprofit organization in the state.

My previous post discussed the governance requirements affecting all organizations regardless of size. Today’s post will discuss the new financial reporting requirements for organizations of varying sizes.

Please keep in mind that this applies only to organizations that have registered to conduct charitable solicitations!

New Financial Reporting Rules

If your organization has registered to conduct charitable solicitations in New York, either as a domestic or foreign entity, you will be required to file an annual financial report and statement with the Attorney General.

The statement addresses any changes in the information required to be contained in the organization’s registration form.

The annual financial report requirements are based on size. Below is a breakdown of what your organization must prepare and file:

Under $250,000 per year: an unaudited report on the Attorney General’s forms.

$250,000-500,000: a GAAP-compliant financial report on the Attorney General’s forms, which includes an independent CPA’s review report.

More than $500,000: a GAAP-compliant financial report on the Attorney General’s forms, which includes an independent CPA’s review report, which also includes a signed opinion that the statements are presented fairly and GAAP-compliant.

Regardless of your organization’s size, the President and Chief Fiscal Officer must sign the report.

The annual report fee will be $25.00.

This concludes the second portion of our NPRA series. My third post addresses governance requirements for large organizations. In the meantime, if you have questions about annual reporting under the NPRA, or in any state, ask it below, or give us a call!

Sources:

Bill No A08072 (New York Nonprofit Revitalization Act)