§ 172-B — Reports by registered charitable organizations; registration to be cancelled for failure to file

New York § 172-B

• Jurisdiction: New York
• Law EXC: Executive
• Art. 7-A: Solicitation and Collection of Funds For Charitable Purposes

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§ 172-b. Reports by registered charitable organizations; registration\nto be cancelled for failure to file. 1. Every charitable organization\nregistered or required to be registered pursuant to section one hundred\nseventy-two of this article which shall receive in any fiscal year gross\nrevenue and support in excess of one million dollars shall file with the\nattorney general an annual written financial report, on forms prescribed\nby the attorney general, on or before the fifteenth day of the fifth\ncalendar month after the close of such fiscal year. The annual financial\nreport shall be accompanied by an annual financial statement which\nincludes an independent certified public accountant's audit report\ncontaining an opinion that the financial statements are presented fairly\nin all material respects and in conformity with generally accepted\naccounting principles, including compliance with all pronouncements of\nthe financial accounting standards board and the American Institute of\nCertified Public Accountants that establish accounting principles\nrelevant to not-for-profit organizations. Such financial report shall\ninclude a statement of any changes in the information required to be\ncontained in the registration form filed on behalf of such organization.\nThe financial report shall be signed by the president or other\nauthorized officer and the chief fiscal officer of the organization who\nshall certify under penalties for perjury that the statements therein\nare true and correct to the best of their knowledge, and shall be\naccompanied by an opinion signed by an independent public accountant\nthat the financial statement and balance sheet therein present fairly\nthe financial operations and position of the organization. A fee of\ntwenty-five dollars payable to the attorney general shall accompany such\nfinancial report at the time of filing, provided however, that any such\norganization that is registered with the attorney general pursuant to\narticle eight of the estates, powers and trusts law is required to file\nonly one annual financial report which meets the filing requirements of\nthis article and section 8-1.4 of the estates, powers and trusts law.\n 2. Every charitable organization registered or required to be\nregistered pursuant to section one hundred seventy-two of this article\nwhich shall receive in gross revenue and support in any fiscal year at\nleast two hundred fifty thousand dollars but not more than one million\ndollars shall file an annual financial report. The annual financial\nreport shall be accompanied by an annual financial statement which\nincludes an independent certified public accountant's review report in\naccordance with "statements on standards for accounting and review\nservices" issued by the American Institute of Certified Public\nAccountants. The annual financial statement shall be prepared in\nconformity with generally accepted accounting principles, including\ncompliance with all pronouncements of the financial accounting standards\nboard and the American Institute of Certified Public Accountants that\nestablish accounting principles relevant to not-for-profit\norganizations. Such financial report shall be filed with the attorney\ngeneral, upon forms prescribed by the attorney general on an annual\nbasis on or before the fifteenth day of the fifth calendar month after\nthe close of such fiscal year, which shall include a financial report\ncovering such fiscal year in accordance with such requirements as the\nattorney general may prescribe. Such financial report shall include a\nstatement of any changes in the information required to be contained in\nthe registration form filed on behalf of such organization. The\nfinancial report shall be signed by the president or other authorized\nofficer and the chief fiscal officer of the organization who shall\ncertify under penalties for perjury that the statements therein are true\nand correct to the best of their knowledge. A fee of twenty-five dollars\npayable to the attorney general shall accompany such financial report at\nthe time of filing, provided, however, that any such organization that\nis registered with the attorney general pursuant to article eight of the\nestates, powers and trusts law is required to file only one annual\nfinancial report which meets the filing requirements of this article and\nsection 8-1.4 of the estates, powers and trusts law. Notwithstanding the\nrequirements of this section, if upon review of an independent certified\npublic accountant's review report filed pursuant to this subdivision,\nthe attorney general determines that a charitable organization should\nobtain an independent certified public accountant's audit report, such\norganization shall obtain and file with the attorney general an audit\nreport that meets the requirements of subdivision one of this section\nwithin one hundred twenty days of the attorney general's request for\nsuch report.\n 2-a. Every charitable organization registered or required to be\nregistered pursuant to section one hundred seventy-two of this article\nwhich shall receive in any fiscal year of such organization gross\nrevenue and support not in excess of two hundred fifty thousand dollars\nshall file with the attorney general an unaudited financial report on\nforms prescribed by the attorney general, on or before the fifteenth day\nof the fifth calendar month after the close of such fiscal year. Such\nfinancial report shall include a statement of any changes in the\ninformation required to be contained in the registration form filed on\nbehalf of such organization. The financial report shall be signed by the\npresident or other authorized officer and the chief fiscal officer of\nthe organization who shall certify under penalties for perjury that the\nstatements therein are true and correct to the best of their knowledge.\nA fee of twenty-five dollars payable to the attorney general shall\naccompany such financial report at the time of filing. Provided,\nhowever, that any such organization that is registered with the attorney\ngeneral pursuant to article eight of the estates, powers and trusts law\nis required to file only one annual financial report which meets the\nfiling requirements of this article and section 8-1.4 of the estates,\npowers and trusts law.\n 3. For any fiscal year of any organization registered pursuant to\nsection one hundred seventy-two of this article in which such\norganization would have been exempt from registration pursuant to\nsection one hundred seventy-two of this article if it had not been so\nregistered, or in which it did not solicit or receive contributions,\nsuch organization shall file, instead of the financial reports required\nby subdivision one, two or two-a of this section, a report, signed under\npenalties for perjury by the president or other authorized officer and\nthe chief fiscal officer, in the form prescribed by the attorney general\nstating the nature of the exemption and the facts upon which it is based\nor that such organization did not solicit or receive contributions in\nsuch fiscal year. The report shall include a statement of any changes in\nthe information required to be contained in the registration form filed\non behalf of such organization and may include a notice, signed under\npenalties for perjury by the president or other authorized officer, on a\nform prescribed by the attorney general, that such organization's\nregistration is being withdrawn.\n 4. (a) Upon prior written authorization by the attorney general any\ncharitable organization registered pursuant to section one hundred\nseventy-two of this article, which is the parent organization of one or\nmore affiliates thereof, and such affiliates, may comply with the\nreporting requirements of subdivision one, two, two-a or three of this\nsection, by filing a combined written annual financial report upon forms\nprescribed by the attorney general.\n (b) As used in this subdivision the term "affiliate" shall include any\nchapter, branch, auxiliary, or other subordinate unit of any registered\ncharitable organization, howsoever designated, whose policies, fund\nraising activities, and expenditures are supervised or controlled by\nsuch parent organization.\n (c) There shall be appended to each combined annual financial report a\nschedule, containing such information as may be prescribed by the\nattorney general, reflecting the activities of each affiliate, which\nshall contain a statement signed under penalties for perjury, by the\npresident or other authorized officer certifying that the information\ncontained therein is true.\n (d) The failure of a parent organization to file a combined annual\nfinancial written report shall not excuse either the parent organization\nor its affiliates from complying with the provisions of subdivision one,\ntwo, two-a or three of this section.\n (e) A combined annual financial report filed pursuant to this\nsubdivision shall be accompanied by a fee, paid to the attorney general,\nof twenty-five dollars plus ten dollars for each organization included\nin such annual financial report, but the aggregate fee shall not exceed\nfive hundred dollars.\n 5. The attorney general shall cancel the registration of any\norganization which fails to comply with subdivision one, two, two-a or\nthree of this section within the time therein prescribed, or fails to\nfurnish such additional information as is requested by the attorney\ngeneral within the required time; except that the time may be extended\nby the attorney general for a period not to exceed one hundred eighty\ndays. Notice of such cancellation shall be mailed to the registrant at\nleast twenty days before the effective date thereof.\n 6. Every charitable organization registered or required to register\npursuant to section one hundred seventy-two of this article shall keep\nand maintain records, books and reports for at least three years after\nthe end of the period of registration to which they relate which shall\nat all times be available for inspection, by the attorney general, or\nany duly authorized representatives at the principal office of such\norganization.\n 7. The attorney general may accept a copy of a current financial\nreport previously filed by a charitable organization with any other\ngovernmental agency in compliance with the provisions of this article\nprovided that the report filed with such other governmental agency shall\nbe substantially similar in content to the financial report required by\nthis section.\n 8. Any financial report filed by any charitable organization required\nto be registered but which has not previously registered pursuant to\nthis article or article eight of the estates, powers and trusts law must\nbe accompanied by all registration material required to be filed by this\narticle.\n 9. Any registered charitable organization that is required to file a\nfunding disclosure report pursuant to section one hundred seventy-two-e\nof this article, and/or a financial disclosure report pursuant to\nsection one hundred seventy-two-f of this article for a reporting period\nduring the applicable fiscal year shall also be required to file such\nannual financial report, including all required forms and attachments,\nwith the department of state.\n