Guidance on SB 1262

California CPA, Jan-Feb, 2005

The Nonprofit Integrity Act of 2004, known as SB 1262, applies new requirements on the conduct of charities, commercial fund-raisers, fund-raising counsels, unincorporated associations and trusts.

Audits will be required for those entities with $2 million or more in gross revenue for fiscal years ending June 30, 2005 and thereafter. Grant or contract income from the government is not included in the charity's gross revenue as long as the government entity requires an accounting of those funds. All other gross revenue questions are answered in the instructions for Line 12 of Form 990 and Line 12, Column (a) for the PF.

California's attorney general has issued guidance and resources on the act, including FAQs and a guide to the new law.

Access the resources at http://ag.ca.gov/charities.>

COPYRIGHT 2005 California Society of Certified Public Accountants

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