Charleston, W.Va. – Some charities in West Virginia will be affected by a change in state law that determines whether an audit or a financial review would need to be submitted along with registration documents to the Office of Secretary of State.
House Bill 4248 passed during the 2010 Legislative Session. The laws go into effect June 11.
Charitable organizations will not have to file any additional paperwork with the Secretary of State’s Office.
Charitable organizations raising more than $200,000 per fiscal year in contributions, excluding grants from governmental agencies or private foundations, will be required to submit an audit performed by an independent certified public accountant.
Charitable organizations raising between $100,000 and $200,000, excluding grants from governmental agencies or private foundations, will be required to submit a statement of financial review by an independent certified public accountant.
An audit of a charitable organization’s finances is extremely detailed while a financial review provides a more general analysis.
The law was passed to help smaller charities save money by not having to perform a full audit while at the same time providing accountability to donors.
The new law also provides a new definition of “solicit or soliciting” that includes electronic means like e-mail, instant messaging, electronic bulletin board, or internet technology.
The entire text of House Bill 4248 can be read on the State Legislature’s website at www.legis.state.wv.us