Sen. Kissel, Governor Rell Usher in Law Regulating Connecticut-Based Charities

Bill Provides Greater Oversight, While Protecting Smaller Charities from Costly Audits
Sen. John A. Kissel (R-Enfield) today joined Governor M. Jodi Rell in her Capitol Office as she signed into law a bill that will provide financial relief to smaller Connecticut-based charities, helping to ensure that more of the money they raise is spent directly on charitable works. The bill, Public Act 09-12, also strengthens oversight and accountability requirements for Connecticut-based charities.

“This law will help to ensure that more of the money raised by Connecticut-based charitable organizations finds its way directly to the charities themselves,” said Senator Kissel. “We achieve this goal by streamlining and strengthening oversight requirements, while at the same time eliminating the need for smaller charities to spend their limited resources on expensive audits.”

Public Act 09-12 increases, from $ 200,000 to $ 500,000, the minimum gross revenue threshold for the requirement that a charity’s annual report be audited. The act also allows the commissioner of the Department of Consumer Protection (DCP) to waive audit requirements, extend filing deadlines and reduce late fees. Finally, the act strengthens oversight requirements by expanding the definition of “paid solicitor” to include any person who for consideration, rather than compensation, solicits or arranges the solicitation of contributions.

“Charitable giving and philanthropy are particularly important during these tough economic times,” said Senator Kissel. “I am proud to have supported this bill which will help to ensure that more of the money donated to Connecticut-based charities is used to make a difference in our communities.”

Senator Kissel joined Governor Rell today at a bill signing ceremony held in the Governor’s Capitol Office. Public Act 09-12 will become law effective July 1, 2009.