Revisions to New York State Filing Requirements For Nonprofit Organizations

We have good news for local nonprofit organizations.  This is important information for both employees of nonprofits and board and committee members.

General Requirements

Certain nonprofits organizations are required to register and file Form CHAR500 Annual Financial Filings with the New York State Attorney General’s Charities Bureau.  Depending on the total annual revenues of the organization, they would be required to mail the CHAR500 along with a complete copy of their form 990 or 990-EZ, a copy of their financial statements (audited or reviewed) and pay filing fees.

Review/Audit of Financial Statements prior to 2021

Under prior law, those organizations that filed Form CHAR 500 with the Charities Bureau were required to submit financial statements reviewed by an independent CPA firm for with annual revenues over $250,000 up to $750,000.  Nonprofits with annual revenues over $750,000 would be required to obtain an audit for that year.

Review/Audit of Financial Statements of Years Ending December 31, 2021 and later

For years ending December 31, 2021 and later, the amount required for an audit is raised to $1,000,000. Generally speaking, a review engagement is more affordable for smaller nonprofit organizations. While an audit provides greater assurance to boards and Finance Committees of nonprofits, you may wish to consider whether a review will meet your banking requirements and it would be worth a discussion with your CPA firm.

Implementation of and Subsequent Repeal of Executive Law 172-b

Effective January 1, 2021, changes to Executive Law 172-b, NYS imposed additional reporting requirements for certain nonprofit organizations that solicit charitable contributions from New York State.  The New Rule effectively created a dual filing requirement to file similar information with the New York Department of State.

While certain organizations were already required to register and file Form CHAR500 Annual Financial Filings with the New York State Attorney General’s Charities Bureau (see general requirements above), the New Rule created a burden for many nonprofits and the purpose of this filing was unclear.

We are happy to report that effective November 12, 2021, Governor Hochul signed a bill to repeal this additional reporting requirement.

We would be happy to discuss these and other filing requirements for your nonprofit organizations.