The Nonprofit Revitalization Act increased the thresholds which trigger a nonprofit's requirement to file audited financials with the Attorney General.  We discussed these changes in our prior Alert when the Act was originally proposed .  With the Governor's signature in December, 2013, these thresholds became law.  Therefore, for fiscal years beginning on or after July 1, 2014, organizations with annual revenue in excess of $500,000 will be required to file a certified public accountant's audit report with the annual report filed with the Attorney General. This threshold will increase to $500,000 for fiscal years beginning on or after July 1, 2014, and then further increase to $750,000 in 2017 and $1,000,000 in 2021. The chart below summarizes the changes to the financial thresholds which trigger the respective filing requirements:

Click here to view table.

Recognizing that many organizations must file their annual reports during this transition period, the Attorney General has published guidance regarding the new filing requirements.  Under this guidance, an organization's filing requirements depends on the original or extended due date of its annual report.  Organizations with an original or extended due date before the July 1, 2014 will be subject to the pre-Act requirements.  Organizations with an original or extended due date after July 1, 2014 will be subject to the new requirements under the Act. 

Consequently, during transitions years, this guidance may change the filing requirements for organizations, particularly those which obtain an extension to file their reports.  For example, if organization has annual revenue of $150,000 for the fiscal year ending December 31, 2013, it would be required to file its annual report by May 15, 2014 and, under the pre-Act requirements, include a review report because its annual revenue exceeds $100,000.  However, if this organization requests an extension to file this annual report until August 15, 2014, then no review report or audit report would be required per the Attorney General guidance.