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Charitable Giving Bill
Gov. Shapiro signed SB 1183, now Act 104 of 2026, into law, easing costly audit requirements for smaller charities. Nonprofits can now spend more time and resources serving their communities, while larger organizations remain accountable.
The Issue
Pennsylvania Sens. Lynda Schlegel Culver (R-Northumberland) and Nick Pisciottano, CPA-inactive (D-Allegheny), introduced Senate Bill 1183, which raises the threshold that subjects charitable organizations to more extensive financial oversight, including mandatory audits.
Key provisions of the PICPA-championed bill include the following:
- $1 million or more in annual contributions: Audit required (previous audit threshold was $750,000)
- $500,000 to under $1 million: Review or audit required
- $150,000 to under $500,000: Compilation, review, or audit required
- Under $150,000: No required compilation, review, or audit
Our Position
The PICPA believes this legislation will benefit many smaller not-for-profit organizations while maintaining appropriate oversight and accountability for larger nonprofits.
Status
Gov. Josh Shapiro signed Senate Bill 1183 into law on Oct. 22, 2026, as Act 104 of 2026. The bill passed the Senate 50-0 on June 22 and the House 202-1 on Oct. 19. The new thresholds take effect February 19, 2027.
Legislative Timeline
- Feb. 24: The PICPA sends a letter of support to the State Senate.
- June 2: The Senate State Government Committee advances the amended bill.
- June 22: The Senate passes SB 1183, 50-0.
- Oct. 6: The House State Government Committee approves the bill, 26-0.
- Oct. 19: The House Appropriations Committee approves the bill, 37-0, and the full House passes it, 202-1.
- Oct. 22: Gov. Shapiro signs the bill into law.
What This Means for You
- For CPAs serving nonprofits: Organizations with $750,000 to under $1 million in annual contributions may now provide a review instead of an audit.
- For nonprofit clients: Smaller charities can reduce compliance costs, while larger organizations remain subject to audit.
- Next step: Talk with affected clients about the change before engaging for their next report.
Comment Letters:
- Email to the Senate State Government Committee - Please Support Senate Bill 1183 - Increasing Charitable Audit Thresholds - June 1, 2026
- Email to House State Government Committee - Please Support House Bill 965 Amending the Solicitation of Funds for Charitable Purposes (SECP) Act - April 30, 2026
- Letter to State Senate - Please Support Senate Bill 1183 - Feb. 24, 2026
