Senate Commerce Committee Statement to Senate Committee Substitute, Nos. 844 and 2533 (March 11, 2021)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated March 11, 2021, reports favorably the Senate Committee Substitute for Senate Bill Nos. 844 and 2533, which amends the New Jersey "Charitable Registration and Investigation Act." A charitable organization with annual gross revenue over $500,000 in monetary donations must file a financial statement audited by an independent certified public accountant; the statement gives the current threshold as $250,000 including in-kind donations. Organizations with revenue over $25,000 and up to $500,000 must file a report certified by an officer. Annual filings due while Executive Order 103 of 2020 remains in effect may be made up to 180 days after it ends without penalty.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE
FOR

SENATE, Nos.
844 and 2533

STATE
OF NEW JERSEY

DATED: MARCH
11, 2021

The Senate Commerce Committee reports favorably the
Senate Committee Substitute for Senate Bill Nos. 844 and 2533.

The
committee substitute amends the New Jersey “Charitable Registration and
Investigation Act” by revising the thresholds of gross revenue amounts received
by charitable organizations that determine their annual financial reporting
requirements with the Attorney General’s office and excluding certain
non-monetary donations from gross revenue. The bill also extends certain
annual reporting and filing.

The
bill provides that a charitable organization operating or soliciting within the
State which receives annual gross revenue in excess of $500,000 in monetary
donations must file with its annual disclosure report a financial statement
which has been audited by an independent certified public accountant. The
threshold for this audited financial statement requirement under current law is
$250,000 of gross revenue, including in-kind donations, or any greater amount
that the Attorney General may prescribe by regulation.

In addition,
the bill makes a corresponding adjustment by providing that organizations that
have annual gross revenues in excess of $25,000 and up to $500,000 must file an
annual financial report that is certified by the organization’s president or
other authorized officer.

The
bill also excludes non-monetary in-kind donations directly related to the
mission of the charitable organization from gross revenue for the purpose of
requiring annual disclosure reports to include a financial statement which has
been audited by an independent certified public accountant. In-kind donations
would include food for food pantries or food shelters, supplies for shelter,
and any other in-kind contributions the Attorney General permits.

Additionally,
the bill requires the State Treasurer to allow any annual report for a
nonprofit corporation that is designated to be filed while Executive Order 103
of 2020 remains in effect, or up to 180 days after its conclusion, to be filed
up to 180 days after the conclusion of that executive order, without requiring
the corporation to pay any penalty or additional fee other than the annual
filing fee. Pursuant to the bill, the State Treasurer may not require any
corporation to pay its filing fee in advance of the date the annual report is
filed.

Lastly,
the bill requires the Attorney General to allow any annual filing of a renewal
statement and financial report for a charitable organization that is scheduled
to be filed while Executive Order 103 of 2020 remains in effect, or up to 180
days after its conclusion, to be filed up to 180 days after the conclusion of
that executive order, without requiring the organization to pay any penalty or
additional fee other than the annual filing fee. The bill also provides that
the Attorney General may not require any organization to pay a filing fee in
advance of the date the renewal statement and financial report are filed.

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