A change in West Virginia regulations regarding nonprofit organizations will make it easier for many smaller charitable organizations in the state to keep their tax exempt status.
The new regulations say that an audit by an independent certified public account will still be required for 501(c)(3) organizations that bring in more than $200,000 in a fiscal year. Charitable organizations that bring in less than that amount will only need to submit a much less detailed – and much less expensive – statement of financial review.
The West Virginia Secretary of State’s office says that state lawmakers passed the law to reduce the financial burden on smaller charitable business types while making sure that the nonprofits were using their financial assets responsibly.
The law also contained language revising the state regulations regarding solicitation to include electronic messaging.
Nonprofits play a significant role in the West Virginia economy. The National Center for Charitable Statistics says there are more than 11,000 registered nonprofits in the state, which took in more than $7.7 billion in revenues last year.