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.