A hearing was held this week on a bill introduced by Delegate Jeannie Haddaway-Riccio that would help non-profit organizations in the State of Maryland. The legislation would increase the threshold for financial reviews and audits to $200,000 and $500,000 respectively. Under current law, non-profit organizations with gross income from charitable contributions of $100,000 or more are required to have a financial review by an independent certified public accountant. Non profits organizations with gross income from charitable contributions of $200,000 or more are required to have an audit by an independent certified public accountant. Financial audits can cost on average $10,000-$20,000, meaning 10%-20% of a non-profit’s budget could be diverted from their core mission for this purpose.
Haddaway said she was familiar with the issue having worked for a non-profit, so when Steve Osche, a certified public accountant with C-Biz Beatty Satchell, LLC in Easton, Maryland contacted her about it, she decided to take action right away. “Mr. Osche made the case that now would be a good time to change this outdated law and I agreed,”
Haddaway said. “In these tough economic times, our non-profit organizations need all the help they can get. His expertise in this area was very helpful as we formulated the legislation.”
Haddaway, Osche and a representative from the Maryland Association of Non-Profit Organizations (MANO) testified in favor of the bill Tuesday. There was no opposition. Yesterday, only two days after the bill hearing, the legislation received a favorable report from the Business Regulation Subcommittee. It is expected to go before the full Economic Matters Committee for a vote on Friday.