Mississippi Senate Bill SB2344

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/1/22

Caption

Charitable solicitation; revise reporting period.

Impact

By updating the financial reporting requirements, SB2344 aims to enhance transparency among charitable organizations regarding their financial operations. This could potentially lead to an increase in public trust, as the legislation seeks to ensure that the contributions received are utilized effectively and reported accurately. The bill mandates that financial statements must not only be reviewed by an independent certified public accountant but also include a certification of accuracy under penalties of perjury from the organization’s authorized officers.

Summary

Senate Bill 2344 proposes amendments to specific sections of the Mississippi Code pertaining to the reporting requirements for charitable organizations that solicit donations. The bill revises the reporting period for filing financial statements by these organizations, moving from annual to a four-year cycle for larger organizations receiving over $500,000 in contributions. It establishes that organizations typically relying on unpaid fundraisers must also adhere to these reporting requirements, which will include a variety of financial disclosures such as a balance sheet and statements detailing income and expenses.

Contention

Some notable points of contention surrounding SB2344 include the additional burden that enhanced reporting requirements may place on smaller charitable organizations, particularly those that traditionally operate with limited administrative resources. Critics argue that the new cycle for reporting could lead to administrative challenges and financial strain for these organizations, potentially stifling their fundraising capabilities. In contrast, proponents argue that the measures are necessary for accountability and could ultimately lead to more significant funding as public confidence in charitable operations increases.