New York Department of State Nonprofit Annual Financial Report Filing Requirements

New York CHAR500 NYS Requirements

Charitable organizations that are incorporated, are formed or conduct charitable activities in the state New York are required to register and file annual financial reports with the Attorney General’s Charities Bureau unless otherwise exempt.

Annual filings are completed by filing a CHAR500 Annual Financial Report, which includes a CHAR500 Form and, if applicable, a copy of the organization’s IRS Form 990 as well as independent audited financial statements.

Annual reports are required only when an organization’s gross receipts for the tax year exceed certain thresholds. In cases where the organization’s finances do not exceed these thresholds, the organization may use the annual financial form to claim exemption from the annual report requirement and submit without additional information.

The documents required to be filed are as follows:

CHAR500 NYS or Annual Filing for Charitable Organizations

• CHAR500 Schedule 4a is required to report applicable contracts with professional fundraisers, fundraising counsels, and commercial co-venturers.
• CHAR500 Schedule 4b is required to report any grants received from a government agency.
• Copies of the organization’s IRS Form 990, 990-EZ or 990-PF, with all schedules including Schedule B, and IRS Form 990-T, if applicable.
• Organizations that received total revenue and support greater than $250,000, but less than $750,000, are required to attach an independent accountant’s review report. If total revenue exceeds $750,000, the organization is required to conduct and submit an independently audited report of its financial statements.

A charitable organization is considered compliant with the Attorney General when all documents as required by law are submitted and applicable fee are paid in a timely manner. Failure to do so will result in additional fees and penalties.

For a Summary of the State of New York Charitable Solicitation Requirements, click here.

New York Consolidate Law Exec. Law 172-b

As already stated, charitable organizations are required to register and file financial reports with the New York Attorney General’s Charities Bureau. Exec. Law 172-b stipulates all charitable organizations that are registered in New York, whether they received donations or not, must file some form of a financial report on forms prescribed by the Attorney General on or before the 15th day of the 5th calendar month on the organization’s fiscal year-end.

The annual report must be filed together with an annual financial statement which includes an independent Certified Public Accountant audit report containing an opinion that the financial statements are free of material misstatements and are in conformity with Generally Accepted Accounting Principles, including compliance with all pronouncements of the Financial Accounting Standards Board and the American Institute of Certified Public Accountants that establish accounting principles relevant to nonprofit organizations. A fee of $25 must be made out to the Attorney General.

All financial reports must include a statement of any changes in the information required to be contained in the registration form filed on behalf of such an organization and signed by the president or other authorized officer and the chief fiscal officer of the organization certifying under penalties of perjury that the statements therein are true and correct to the best of their knowledge.

Depending on gross donations received, nonprofit organizations must file annual financial reports along with accompanying attachments as follows:

Registered Nonprofits That Raised $0 in Donations:

If your nonprofit organization is registered with the New York Attorney General but did not solicit nor received donations for a fiscal year, you are required to file a report on forms prescribed by the Attorney General, explaining the nature of your exemption (instead of filing a financial report). The report shall include a statement of changes information required and may include a notice that such organization’s registration is being withdrawn.

Effective July 1, 2021, Registered Nonprofits that Raised at most $250,000:

Nonprofit organizations who fall in this category are required to file an unaudited annual financial report and pay a $25 filing fee.

Effective July 1, 2021, Registered Nonprofits that Raised at least $250,000 but not more than $750,000:

These nonprofits are required to file an annual financial report accompanied by an annual financial statement which includes an independent Certified Public Accountant’s financial review report, stating that the nonprofit’s financial statements are consistent with GAAP or “statements on standards for accounting and review services” issued by the American Institute of Certified Public Accountants.

Note that upon review, the Attorney General could determine that your charitable organization should obtain an independent CPA’s audit report. In this case, your nonprofit is required to comply within 120 days of the attorney general’s request.

Effective until June 30, 2021, Registered Nonprofits that raised funds in excess of $1 million:

These nonprofits are required to file an annual written financial report on forms prescribed by the AG, on or before the 15th day of the 5th calendar month after the close of such a fiscal year. The report must be accompanied by an annual financial statement which includes an independent CPA’s audit report containing a favorable opinion that the financial statements are free of misstatements and are in conformity with generally accepted accounting principles.

Effective until June 30, 2021, Registered Nonprofits that raise funds of at least $250,000 but no more than $1 million:

These nonprofits are required to file an annual report accompanied by an annual financial statement which includes an independent Certified Public Accountant’s review report in accordance with “statements on standards for accounting and review services” issued by the American Institute of Certified Public Accountants.

Affiliates of Charitable Organizations:

Affiliates comprise chapter branch, auxiliary, or other subordinate units of registered charitable organizations that are supervised by the parent organization. Parent organizations are required to file combined annual financial reports with their affiliates by attaching the reports and detailing the activities of each of their affiliates. A $25 fee, along with $10 per affiliate must be made payable to the Attorney General.

• New York Attorney General prescribes all forms.
• Organizations with affiliates must combine their filings and pay an extra fee of $10 per affiliate.

Filing Financial Reports with the Department of State

You might be asking yourself why file financial reports again with the Department of State after filing some of the same reports with the Office of the Attorney General? By the looks of it, the additional filing, which has been deemed redundant by some groups, targets 501(c)(4) organizations. It complicates 501(c)(3) contributions to 501(c)(4) organizations, if those contributions are inconsistent with the charitable exempt purpose of the contributing organization, in this case the 501(c)(3). Bills to prohibit the disclosure of names, addresses, and telephone numbers of contributors and amounts contributed that are reported on financial disclosure reports of certain nonprofit organizations are currently under consideration.

Bottom line: Qualifying organizations that exceed certain earning, spending, donation thresholds during a designated period of time are required to file the following reports with the New York Department of State:

Annual Financial Disclosure Report

Charitable organizations that receive more than $250,000 in gross receipts must now also file annual financial reports with the Department of State and Department of Law. The New York Annual Financial Disclosure Report must be filed before the 15th day of the 5th calendar month after the close of the charitable organization’s fiscal year, with a filing fee of $25.

Organizations that are required to file Annual Financial Report or Funding Disclosure Report and/or Financial Disclosure Reports are also required to file and Annual Financial Report including all required forms and attachments with the Department of State.

Funding Disclosure Reports with the New York Department of State

A Funding Disclosure Report identifies the financial support 501(c)(3) organizations give to 501(c)(4) organizations. A Funding Disclosure Report of all donations in excess of $10,000 must be filed with the Department of State within 30 days of the close of the reporting period. The fee for filing a Funding Disclosure Report is $25.

Under executive law, the Department of State publishes funding disclosure reports, subject to restrictions, whenever the donation to the 501(c)(4) is inconsistent with the 501(c)(3)’s charitable purposes.

Financial Disclosure Reports with the New York Department of State

This covers 501(c)(4) charitable organizations. They are required to file a financial disclosure report with the Department of State on all expenditures in excess of $10,000. This report must be filed within 30 days of the close of the reporting period. The filing fee is $25.

Under executive law, the Department of State publishes funding disclosure reports, subject to restrictions, whenever the donation to the 501(c)(4) is inconsistent with the 501(c)(3)’s charitable purposes.

All fees must be made payable to the Department of State at:

NYS Department of State Division of Corporations Attention:

Revenue Unit 99 Washington Avenue,

One Commerce Plaza,

Albany NY 12231.

How about the Internal Revenue Service Form 990 Schedule B?

Annual Financial Reports: If your organization was required to file a Form 990 with the Department of Law, you are required to include a Form 990 with your Annual Financial Reports.

Funding Disclosure Reports: If your organization’s annual report does not include an IRS Form 990 Schedule B, your organization is required to file a complete IRS Form 990 Schedule B, regardless of whether such a form was submitted or required to be submitted to the IRS.

Financial Disclosure Reports: If an organization’s annual report does not include a completed IRS Form 990 Schedule B, the organization is also required to complete an IRS Form 990 Schedule B, regardless of whether such a form was submitted or required to be submitted to the IRS.

When filings are due

Annual Financial Reports: They must be filed with the Department of State on or before the 15th day of the 5th calendar month after the close of the organization’s fiscal year. While Funding Disclosure Reports and Financial Disclosure Reports must be filed with the Department of State within 30 days of the close of the 6-month period within a calendar year starting in January 1st and ending June 30th or 6-month period within a calendar year starting July 1 and ending December 31.

As it is with new regulations and legislation, some groups have challenged certain provisions especially when it comes to the disclosure. Currently bills such as, Bill NO A11141 which prohibits the disclosure of the names, addresses, and telephone numbers of contributors and amounts contributed that are reported on financial disclosure reports of certain nonprofit organizations are under consideration.

There are several groups and organizations that have deemed additional filing with the Department of State as redundant and are currently mounting actions to repeal this law. As of now, this is an evolving situation. We will keep monitoring and alert you to any changes.