NJ Relaxes Nonprofit Reporting Requirements

The New Jersey Senate recently passed legislation that relaxes annual report filing requirements and deadlines for many of the state’s charitable organizations. Senate Bill Nos. 844 and 2533 have now been signed into law by Governor Murphy, amending the “Charitable Registration and Investigation Act” and bringing welcome news to nonprofits across the state.

Annual Financial Reporting Requirements

The new law raises the gross revenue amount threshold that determines charitable organizations’ annual financial reporting requirements with the Attorney General’s office. Under the new legislation, only a charitable organization that receives annual gross revenue in excess of $1 million of monetary donations will need to file a financial statement that has been audited by an independent certified public accountant.

Previously, NJ law imposed this financial reporting requirement on all charitable organizations that receive annual gross revenues in excess of $500,000, including non-monetary in-kind donations.

Nonprofits that receive annual gross revenues in excess of $25,000 but less than $1 million must still file an annual financial statement with the Attorney General’s office, but it can be certified by the organization’s president or other authorized officer.

Annual Report Filing Deadlines and Fees

In addition, the new bill requires the State Treasurer to allow nonprofit organizations extra time to file annual reports that came due while Executive Order 103 of 2020 was in effect. The executive order was issued at the beginning of the COVID-19 pandemic to protect the health, safety and welfare of the state’s residents.

Nonprofits will have up to 180 days after the conclusion of the executive order to file their annual report and pay the filing fee without incurring any late penalties or additional fees. This extension also applies to the annual filing of renewal statements and financial reports and accompanying fees.

If you have any questions about how the new requirements impact your New Jersey nonprofit, please contact Bryan Fryer or Jaime Rapps of Grassi’s Nonprofit team.

 

 


Jaime Rapps Jaime Rapps, CPA is a Principal at Grassi and brings more than 10 years of audit, accounting and tax experience to his role. A member of the firm’s Nonprofit practice, he specializes in financial reporting, audits, reviews, compilations and tax work for clients in the nonprofit and healthcare industries. Jaime advises a wide range of nonprofit organizations on financial, operational and compliance matters. He... Read full bio

Bryan Fryer Bryan Fryer is a Consulting Principal in Grassi’s Nonprofit Practice. In this role, he is committed to advising nonprofit organizations, associations and foundations on improving financial health, mitigating risk and achieving long-term sustainability. Bryan specializes in providing outsourced CFO services that are customized to each client’s level of need. These services include establishing and maintaining accounting policies and procedures, conducting risk assessments, overseeing external... Read full bio

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