NJ DCA Raises Mandatory Audit Threshold for Non-Profits’ Charity Registrations

The New Jersey Division of Consumer Affairs has approved new regulations that will raise the mandatory audit threshold for charities under the “Charitable Registration and Investigation Act.”
Under New Jersey’s Charitable Registration and Investigation Act, most organizations must register and file annual financial reports with the New Jersey Division of Consumer Affairs, Charities Registration Section. Groups that raise less than $10,000 in a year are exempt, provided that fundraising is conducted by persons who are not compensated for soliciting contributions. Religious organizations are also exempt, as are certain libraries and schools if specific conditions are met.
Effective immediately, the amended regulations, published in the February 22, 2011, New Jersey Register , include a provision that raises the audit threshold from $250,000 in gross revenue to $500,000. This change means that any organization with less than $500,000 in gross revenue in its most recently completed fiscal year will no longer have to submit an independent audit in order to satisfy the requirements of New Jersey’s fund raising statute.