Audit Threshold legislation signed by Governor Tomblin
New legislation will help many nonprofits save thousands of dollars each year.
Thanks the support and collective involvement by members of the West Virginia Nonprofit Association and Philanthropy WV, SB351 Increasing the Audit Threshold for Nonprofits passed both chambers of the WV Legislature on March 6. Governor Earl Ray Tomblin signed the legislation into law on March 12, and it will go into full effect June 4, 2015. The WVNPA and Philanthropy WV are grateful to the legislators that supported the bill in the Senate and House chambers, as well as Governor Tomblin.
The legislation raises the audit threshold for nonprofit organizations operating in West Virginia from $200,000 to $500,000.
The legislation states:
(A) Charitable organizations raising more than $500,000 per year in contributions, excluding grants from governmental agencies or private foundations, shall submit a report of an audit by an independent certified public accountant; and
(B) Charitable organizations raising more than $200,000 per year, but less than $500,000 per year in contributions, excluding grants from governmental agencies or private foundations, shall submit a statement of financial review by an independent certified public accountant;
We look forward to its implementation and the upgrades that will take place on reporting processes in the West Virginia Secretary of State for those organizations under $500,000. This legislation will help nonprofits at the $500,000 or less tiers to save at least $3,500 to 5,000 per year to put more resources toward their missions and into their communities.
This progress would not have been possible had it not been for the collaborative partnerships of the WVNPA, Philanthropy WV and our members, as well as partners at the the West Virginia Society of CPAs, the WVU College of Law, and the West Virginia Secretary of State’s Office.
This collaborative effort exemplifyied the quotation from Henry Ford, “Coming together is a beginning; keeping together is progress; working together is success.”
The full text and history of the legislation can be found at http://www.legis.state.wv.us/Bill_Status/bills_history.cfm?INPUT=351&year=2015&sessiontype=RS
