Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB851 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	LRB-5058/1
2	2	ARG:cdc
3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 851
5	5	December 26, 2023 - Introduced by Senators MARKLEIN, BRADLEY and ROYS,
6	6	cosponsored by Representatives WITTKE, BROOKS, ALLEN, MURPHY, O'CONNOR,
7	7	PENTERMAN, RETTINGER, SINICKI, WICHGERS and GOEBEN. Referred to
8	8	Committee on Financial Institutions and Sporting Heritage.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to amend 202.12 (1) (b) 2g., 202.12 (1) (b) 2r., 202.12 (3) (b), 202.12 (3)
11	11	(bm), 202.12 (3) (d) 1. and 202.12 (3) (d) 2. of the statutes; relating to: financial
12	12	statements of registered charitable organizations.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill makes changes relating to registration and reporting requirements
15	15	applicable to charitable organizations.
16	16	Under current law, a charitable organization that solicits, or has solicited on its
17	17	behalf, contributions in this state must register with the Department of Financial
18	18	Institutions, unless an exception applies. With its initial application for registration
19	19	and with each annual report, a charitable organization must provide financial
20	20	information for the previous fiscal year if the charitable organization meets a certain
21	21	contribution threshold (except that all dollar amounts below are subject to DFI's
22	22	adjustment for inflation). Financial information must be provided as follows:
23	23	1. If the charitable organization received contributions of more than $300,000
24	24	but not more than $500,000 in the previous fiscal year, a reviewed financial
25	25	statement, prepared in accordance with generally accepted accounting principles
26	26	(GAAP) and reviewed by an independent certified public accountant (CPA).
27	27	2. If the charitable organization received contributions of more than $500,000
28	28	in the previous fiscal year, an audited financial statement, prepared in accordance
29	29	with GAAP and including the opinion of an independent CPA.
30	30	This bill increases these threshold amounts. Under the bill, a reviewed
31	31	financial statement is required if the charitable organization received contributions
32	32	1
33	33	2
34	34	3 - 2 -2023 - 2024 Legislature LRB-5058/1
35	35	ARG:cdc
36	36	SENATE BILL 851
37	37	in the previous fiscal year of more than $500,000 but not more than $1,000,000. An
38	38	audited financial statement is required if the contributions exceeded $1,000,000.
39	39	Current law also allows DFI, upon application, to grant a charitable
40	40	organization a waiver of the requirement to file financial information with its annual
41	41	report. A waiver may be granted if the charitable organization received
42	42	contributions in each of the past three fiscal years of less than $100,000, but during
43	43	the fiscal year for which the waiver is requested the charitable organization received
44	44	contributions from one contributor exceeding $200,000 or $400,000, respectively.
45	45	The bill also increases the threshold amounts applicable for DFI's waiver.
46	46	Under the bill, a waiver may be granted if the charitable organization received
47	47	contributions in each of the past three fiscal years of less than $300,000, but during
48	48	the fiscal year for which the waiver is requested the charitable organization received
49	49	contributions from one contributor exceeding $200,000 or $700,000, respectively.
50	50	The people of the state of Wisconsin, represented in senate and assembly, do
51	51	enact as follows:
52	52	SECTION 1. 202.12 (1) (b) 2g. of the statutes is amended to read:
53	53	202.12 (1) (b) 2g. A reviewed financial statement for the most recently
54	54	completed fiscal year of the charitable organization, if the charitable organization
55	55	received contributions in excess of $300,000 $500,000, subject to adjustment under
56	56	sub. (8), but not more than $500,000 $1,000,000, subject to adjustment under sub.
57	57	(8), during its most recently completed fiscal year. The statement shall be prepared
58	58	in accordance with generally accepted accounting principles and include a review of
59	59	the financial statement by an independent certified public accountant.
60	60	SECTION 2. 202.12 (1) (b) 2r. of the statutes is amended to read:
61	61	202.12 (1) (b) 2r. An audited financial statement for the most recently
62	62	completed fiscal year of the charitable organization, if the charitable organization
63	63	received contributions in excess of $500,000 $1,000,000, subject to adjustment under
64	64	sub. (8), during its most recently completed fiscal year. The statement shall be
65	65	prepared in accordance with generally accepted accounting principles and include
66	66	the opinion of an independent certified public accountant on the financial statement.
67	67	1
68	68	2
69	69	3
70	70	4
71	71	5
72	72	6
73	73	7
74	74	8
75	75	9
76	76	10
77	77	11
78	78	12
79	79	13
80	80	14
81	81	15 - 3 -2023 - 2024 Legislature
82	82	LRB-5058/1
83	83	ARG:cdc
84	84	SECTION 3
85	85	SENATE BILL 851
86	86	SECTION 3. 202.12 (3) (b) of the statutes is amended to read:
87	87	202.12 (3) (b) In addition to the annual report required under par. (a), if a
88	88	charitable organization received contributions in excess of $500,000 $1,000,000,
89	89	subject to adjustment under sub. (8), during its most recently completed fiscal year,
90	90	the charitable organization shall file with the department an audited financial
91	91	statement for the charitable organization's most recently completed fiscal year,
92	92	prepared in accordance with generally accepted accounting principles, and the
93	93	opinion of an independent certified public accountant on the financial statement.
94	94	The audited financial statement shall be filed within 12 months after the end of that
95	95	fiscal year.
96	96	SECTION 4. 202.12 (3) (bm) of the statutes is amended to read:
97	97	202.12 (3) (bm) In addition to the annual report required under par. (a), if a
98	98	charitable organization received contributions in excess of $300,000 $500,000,
99	99	subject to adjustment under sub. (8), but not more than $500,000 $1,000,000, subject
100	100	to adjustment under sub. (8), during its most recently completed fiscal year, the
101	101	charitable organization shall file with the department a financial statement for the
102	102	charitable organization's most recently completed fiscal year, prepared in
103	103	accordance with generally accepted accounting principles, and a review of the
104	104	financial statement by an independent certified public accountant. The financial
105	105	statement shall be filed within 12 months after the end of that fiscal year.
106	106	SECTION 5. 202.12 (3) (d) 1. of the statutes is amended to read:
107	107	202.12 (3) (d) 1. The charitable organization's contributions were, during each
108	108	of the past 3 fiscal years, less than $100,000 $300,000, subject to adjustment under
109	109	sub. (8).
110	110	SECTION 6. 202.12 (3) (d) 2. of the statutes is amended to read:
111	111	1
112	112	2
113	113	3
114	114	4
115	115	5
116	116	6
117	117	7
118	118	8
119	119	9
120	120	10
121	121	11
122	122	12
123	123	13
124	124	14
125	125	15
126	126	16
127	127	17
128	128	18
129	129	19
130	130	20
131	131	21
132	132	22
133	133	23
134	134	24
135	135	25 - 4 -2023 - 2024 Legislature LRB-5058/1
136	136	ARG:cdc
137	137	SECTION 6 SENATE BILL 851
138	138	202.12 (3) (d) 2. During the fiscal year for which the waiver is being requested,
139	139	the charitable organization received one or more contributions from one contributor
140	140	that exceeded $200,000, subject to adjustment under sub. (8), if the charitable
141	141	organization is applying for a waiver of the requirement set forth in par. (bm), or
142	142	exceeded $400,000 $700,000, subject to adjustment under sub. (8), if the charitable
143	143	organization is applying for a waiver of the requirement set forth in par. (b).
144	144	SECTION 7.0Initial applicability.
145	145	(1) The treatment of s. 202.12 (1) (b) 2g. and 2r. first applies to applications for
146	146	registration received after the effective date of this subsection.
147	147	(2) The treatment of s. 202.12 (3) (b), (bm), and (d) 1. and 2. first applies with
148	148	respect to a fiscal year that begins after the effective date of this subsection.
149	149	(END)
150	150	1
151	151	2
152	152	3
153	153	4
154	154	5
155	155	6
156	156	7
157	157	8
158	158	9
159	159	10
160	160	11
161	161	12