(a) Registration and approval required.--A charitable organization, unless exempted from registration requirements pursuant to section 6,¹ shall file a registration statement with the department. This statement must be refiled annually and postmarked by the fifteenth day of the fifth month following the close of its fiscal year in which the charitable organization was engaged in solicitation activities. The department shall review the statement pursuant to subsection (r). No charitable organization shall solicit contributions or have contributions solicited in its behalf before approval of its registration statement by the department.

(b) Filing of statement.--It shall be the duty of the president, chairman or principal officer of each charitable organization to file the registration statement, financial report and fee required under this section. The registration statement shall be made by two authorized officers subject to 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities), including the chief fiscal officer of the organization, and shall contain all of the following information:

(c) Additional filings.--With the initial registration only, each charitable organization required to be registered shall also file with the department the following documents:

(d) Federal tax exemption determination.--Each charitable organization registered with the department shall file with the department a copy of any Federal tax exemption determination letter received after the initial registration within 30 days after receipt, and any amendments to its organizational instrument within 30 days after adoption.

(e) Financial report.--With each registration statement filed under this section, a charitable organization must file a financial report for the immediately preceding fiscal year, which shall contain a balance sheet and statements of revenue, expenses and changes in fund balances indicating the organization's gross revenue, the amount of funds received from solicitations or other fundraising activities and all expenditures for supplies, equipment, goods, services, programs, activities or other expenses, a detailed list of all salaries and wages paid and expenses allowed to any officer or employee if the organization is not required to file an Internal Revenue Service Form 990 and the disposition of the net proceeds received from solicited contributions or other fundraising activities.

(f) Audit of certain financial reports.--The financial report of every charitable organization which receives annual contributions of $750,000 or more shall be audited by an independent certified public accountant or public accountant. Every charitable organization which receives annual contributions of at least $250,000, but less than $750,000, shall be required to have a review or audit of their financial statements performed by an independent certified public accountant or public accountant. Every charitable organization which receives annual contributions of at least $100,000, but less than $250,000, shall be required to have a compilation, review or audit of their financial statements performed by an independent certified public accountant or public accountant. A compilation, audit or review is optional for any charitable organization which receives annual contributions of less than $100,000. Audits shall be performed in accordance with generally accepted auditing standards, including the Statements on Auditing Standards of the American Institute of Certified Public Accountants, whereas reviews shall be performed in accordance with the Statements on Standards for Accounting and Review Services of the American Institute of Certified Public Accountants.

(g) Governmental audits.--Government audits of government grants shall be accepted and shall be included as part of the financial statements.

(h) Other acceptable reports.--The Department may accept a copy of a current financial report previously prepared by a charitable organization for a governmental agency in another jurisdiction in compliance with the laws of that jurisdiction, provided that the report filed with such other governmental agency shall be substantially similar in content to the report required by this section.

(i) Reports to accompany audit.--Audited and reviewed financial statements must be accompanied by the report prepared and signed by the independent public accountant.

(j) Optional departmental action.--The department shall have the discretion to require that an audit or review be submitted by any charitable organization which files a registration statement. The department shall also have the discretion to accept the financial statement submitted by the organization in lieu of an audit or review where special facts and circumstances are presented.

(k) Time extension for filings.--For good cause shown, the department may extend the time for the annual filing of a registration statement or financial report to a mailing date not to exceed the fifteenth day of the eleventh month following the close of the fiscal year during which time the previous registration remains in effect.

(l) Cancellation of registration.--In no event shall the registration of a charitable organization continue in effect after the date the organization should have filed, but failed to file, its financial report in accordance with this section. Such organization shall not be eligible to file a new registration statement until it shall have filed the required financial report with the department.

(n) Federated organizations.--An independent member agency of a federated fundraising organization shall independently comply with the provisions of this section unless specifically exempted or unless it receives allocations solely from the federated fundraising organization and does not independently solicit contributions. Donor choice programs are deemed to be independent solicitations.

(o) Retention of records, etc.--Each charitable organization required to register shall maintain records, books and reports for at least three years after the end of the period of registration to which they relate, which shall be available for inspection upon demand by the department and the Office of Attorney General.

(p) Annual registration fees.--A charitable organization which submits a short form registration statement pursuant to section 7³ or receives contributions of $25,000 or less during the immediately preceding fiscal year shall pay an annual registration fee of $15. A charitable organization which receives contributions in excess of $25,000 but less than $100,000 during the immediately preceding fiscal year shall pay an annual registration fee of $100. A charitable organization which receives contributions in excess of $100,000 but not exceeding $500,000 during the immediately preceding fiscal year shall pay an annual registration fee of $150. A charitable organization which receives contributions in excess of $500,000 during the immediately preceding fiscal year shall pay an annual registration fee of $250. A parent organization filing on behalf of one or more affiliates and a federated fundraising organization filing on behalf of its member agencies shall pay a single annual registration fee for itself and such other affiliates or member agencies included in the registration statement.

(q) Late filing fees.--In addition to the registration fee, an organization failing to file a registration application by the due date shall pay an additional fee of $25 for each month or part of the month after the date on which the registration statement and financial report were due to be filed or after the period of extension granted for such filing.

(r) Department review.--The department shall examine each registration statement and supporting documents filed by a charitable organization and shall determine whether the registration requirements are satisfied. If the department determines that the registration requirements are not satisfied, the department must notify the charitable organization within 15 working days of its receipt of the registration statement; otherwise the registration statement is deemed to be approved. Within 15 days after receipt of a notification that the registration requirements are not satisfied, the charitable organization may request a hearing. The hearing must be held within 15 days of receipt of the request, and a determination must be rendered within three working days of the hearing.

(s) Administration of charitable contributions.--A charitable organization shall maintain and administer all contributions raised on its behalf through an account in the name of the charitable organization and under its sole control.

(t) Updating information.--Any material change in any information filed with the department pursuant to this section shall be reported in writing by the registrant to the department not more than 30 days after such change occurs.