Governor Phil Murphy signed into law Bills S844 and S2533 which revised New Jersey financial reporting requirements with the Attorney General for charities and excludes non-monetary in-kind donations, related to an organization’s tax-exempt purpose, from gross revenue for the purpose of reporting requirements. The legislation signed on January 18, 2022 is effective immediately.
Under the newly enacted legislation, the dollar amount at which audited financial statements are required increased from gross revenues of more than $500,000 to gross revenues of more than $1,000,000. For organizations with gross revenues of more than $25,000 up to $1,000,000 an annual financial statement must be filed, however, it may be certified by the organization’s president or other authorized officer. Note that funders or others may require audited financial statements, even if New Jersey does not.
In addition, organizations who operate in multiple jurisdictions may be subject to lower thresholds requiring an audited financial statement. For more details view our comprehensive guide on State Charitable reporting requirements.