The Illinois Office of the Attorney General has provided additional information on recent amendments to the Solicitation for Charity Act that will be effective January 1, 2024. According to the Office, the new requirements will apply to annual reports that have an initial due date after the January 1, 2024 effective date.
On June 30, 2023, the Illinois legislature passed H.B. 1197. The law loosens the state’s strict financial reporting requirements for charitable organizations.
Previously, an audit was required if an organization received more than $300,000 in contributions. The law raises the audit threshold to more than $500,000 in contributions.
Organizations that received more than $300,000 but not more than $500,000 in contributions are required to file reviewed financial statements in lieu of an audit. Reviewed financial statements still require an independent CPA and is less in scope than an audit.
The $25,000 audit threshold for charitable organizations that use a paid professional fundraiser has not changed.