SB 1183: Nonprofit Audit Thresholds Bill Passes Senate 50-0

What happened: Senate Bill 1183, sponsored by Sen. Schlegel Culver, passed the full Pennsylvania Senate on June 22, 2026 by a unanimous 50-0 vote. The bill raises the thresholds at which charitable organizations are required to have their financial statements audited, reviewed, or compiled — providing meaningful cost relief for organizations that currently fall just above the existing thresholds. The Senate also adopted two amendments: one changing the bill’s effective date to 120 days after the Governor’s signature, and one removing a reference in Section 9(l). Our understanding is that neither change alters the original intent of the legislation.

How this Changes Current Requirement: Pennsylvania’s Solicitation of Funds for Charitable Purposes Act already establishes a tiered financial reporting structure based on annual gross receipts. Thresholds for gross annual receipts would increase as follows:

• From $750,000 to $1 million: Audited financial statements, performed by an independent licensed CPA
• From $250,000–$749,999 to $500,000–$999,000: Reviewed or audited financial statements
• From $100,000–$249,999 to $150,000–$499,999: Compiled, reviewed, or audited financial statements
• From $25,000–$99,999 to <$150,000: Internally prepared financial statements (or compiled, reviewed, or audited statements in lieu)

SB 1183 codifies the audit requirements more explicitly in statute.

PANO’s position: PANO supports this bill. PANO recognizes the value of independent financial review and the importance of nonprofit transparency to donors, foundations, government partners, and the communities nonprofits serve. At the same time, PANO has long sought to balance the cost of annual audits with the protection they provide. Of the 21 states with fundraising registration-related audit requirements, six — nearly 30% — set their thresholds at $1 million or higher. Raising Pennsylvania’s threshold to $1 million provides meaningful cost relief for some organizations without compromising financial integrity.

It is also worth noting that the practical reach of any threshold change is limited: nonprofits that register to fundraise in multiple states must comply with the audit requirements of whichever state sets the lowest threshold — so organizations with multi-state registration may not be able to take full advantage of Pennsylvania raising its own bar. Still, a higher threshold will help single-state and primarily Pennsylvania-based organizations, and this bill is a meaningful step in the right direction.

What to watch: Movement on the companion bill, HB 965, in the House. PANO will share updates as the legislation advances.