LRB-4201/1
CTS:bjk&kjf:nwn
2007 - 2008 LEGISLATURE
March 4, 2008 - Introduced by Representatives Strachota, Nass, Kerkman, Hahn,
Mursau, Townsend, Bies
and Gunderson, cosponsored by Senators Sullivan,
Grothman, Darling
and Olsen. Referred to Committee on Financial
Institutions.
AB908,1,3 1An Act to amend 440.42 (3) (a) (intro.), 440.42 (3) (b) and 440.42 (8); and to
2create
440.42 (3) (bm) of the statutes; relating to: reporting requirements for
3certain charitable organizations.
Analysis by the Legislative Reference Bureau
Under current law, charitable organizations are regulated by the Department
of Regulation and Licensing (department). Generally, if a charitable organization
received more than $5,000 in contributions in its most recently completed fiscal year,
the organization must file an annual financial statement with the department. If a
charitable organization received more than $100,000 in contributions in its most
recently completed fiscal year, the organization must instead file an audited
financial statement and an opinion on the statement from an independent certified
public accountant.
Under this bill, a charitable organization must file an audited financial
statement and an accountant's opinion if the charitable organization received more
than $400,000 in contributions in its most recently completed fiscal year. If a
charitable organization received between $200,000 and $400,000 in its most recently
completed fiscal year, the charitable organization must file a financial statement and
a review of the statement by an independent certified public accountant.

For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB908, s. 1 1Section 1. 440.42 (3) (a) (intro.) of the statutes is amended to read:
AB908,2,92 440.42 (3) (a) (intro.) Except as provided in pars. (am) and, (b), and (bm), and
3in rules promulgated under sub. (8), a charitable organization that received
4contributions in excess of $5,000 during its most recently completed fiscal year shall
5file with the department an annual financial report for the charitable organization's
6most recently completed fiscal year. The department shall prescribe the form of the
7report and shall prescribe standards for its completion. The annual financial report
8shall be filed within 6 months after the end of that fiscal year and shall include all
9of the following:
AB908, s. 2 10Section 2. 440.42 (3) (b) of the statutes is amended to read:
AB908,2,1911 440.42 (3) (b) Except as provided in rules promulgated under sub. (8), in lieu
12of filing a report under par. (a),
if a charitable organization that received
13contributions in excess of $100,000 $400,000 during its most recently completed
14fiscal year, the charitable organization shall file with the department, in lieu of a
15report under par. (a),
an audited financial statement for the charitable organization's
16most recently completed fiscal year, prepared in accordance with generally accepted
17accounting principles, and the opinion of an independent certified public accountant
18on the financial statement. The audited financial statement shall be filed within 6
19months after the end of that fiscal year.
AB908, s. 3 20Section 3. 440.42 (3) (bm) of the statutes is created to read:
AB908,3,8
1440.42 (3) (bm) Except as provided in rules promulgated under sub. (8), if a
2charitable organization received contributions in excess of $200,000 but less than
3$400,000 during its most recently completed fiscal year, the charitable organization
4shall file with the department, in lieu of a report under par. (a), a financial statement
5for the charitable organization's most recently completed fiscal year, prepared in
6accordance with generally accepted accounting principles, and a review of the
7financial statement by an independent certified public accountant. The financial
8statement shall be filed within 6 months after the end of that fiscal year.
AB908, s. 4 9Section 4. 440.42 (8) of the statutes is amended to read:
AB908,3,1210 440.42 (8) Contribution limits. The department may promulgate rules that
11adjust the $5,000 limit threshold amounts in subs. (3) (a), (b), (bm), and (c) and (5)
12(a) 3. and (b) and the $100,000 limit in sub. (3) (b) to account for inflation.
AB908,3,1313 (End)
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