charity-filing-thresholds

# State Charity Filing Threshold Research

Produces a citation-backed, state-by-state matrix of audit/review/compilation thresholds, fees, and deadlines for charitable solicitation filings. States define revenue triggers differently — "gross annual revenue," "total revenue," "contributions," and "gross support and revenue" map to different Form 990 lines and shift which financial-statement tier applies. Thresholds change frequently through administrative action without legislation.

## Pre-Draft Intake

Gather before drafting (apply defaults if user says "use defaults" or "just draft"):

| Parameter | Default |
|---|---|
| Jurisdictions | All 41 registration states + DC |
| Gross revenue / contributions (Form 990) | $1,000,000 |
| Fiscal year end | December 31 |
| Entity category | 501(c)(3) public charity |
| Output format | Full compliance package (memo + matrix) |

**Scope:** Charitable solicitation registration/renewal filings for 501(c)(3) organizations. Excludes corporate annual reports, IRS filings, and professional fundraiser/solicitor regimes unless requested.

## Core Workflow

### 1. Source Identification

For each state, locate and record: regulator/agency, statute citation, regulation citation, filing form(s) with links, fee schedule, due date authority, and last-verified date.

**Primary-source-first rule:** Prefer statute/regulation text over FAQ summaries. Flag guidance-only sources.

### 2. Data Extraction

Extract per state:

- **Audit** — threshold amount (≥ or >), revenue basis term (verbatim), exemptions
- **Review** — threshold range, revenue basis term
- **Compilation** — threshold, whether acceptable below review threshold
- **Fees** — tier table with revenue basis term
- **Due date** — rule (e.g., "4.5 months after FYE"), extension availability and mechanism

**Critical — Revenue Definition Variance:**

| State Term | Typical 990 Line | Example States |
|---|---|---|
| "gross annual revenue" | Part VIII, Line 12 | CA |
| "total revenue" | Part VIII, Line 12 | NY, GA, PA |
| "contributions" | Part VIII, Line 1h | IL, FL |
| "gross support and revenue" | Part VIII, Line 12 | MA |

Never assume "gross revenue" equals "contributions." Capture each state's term verbatim and map to the applicable Form 990 line.

**Extraction rules:**

- Statute/regulation controls over instructions — note conflicts
- Capture Form 990 line references explicitly when states use them
- Label which program a threshold applies to when multiple exist (trust reporting vs. solicitation)

### 3. Normalization

Standardize into fields: `state`, `audit_threshold_amount`, `audit_threshold_basis_raw`, `audit_threshold_990_line`, `review_threshold_amount`, `compilation_acceptable_below`, `fee_schedule`, `due_date_rule_raw`, `due_months_after_fye`, `extension_available`, `extension_length`, `extension_mechanism`, `citations`, `last_verified_date`.

Maintain a **decision log** for ambiguities: issue, state, sources consulted, decision taken, follow-up needed.

### 4. Assemble Deliverables

**Master matrix** — one row per state with: audit threshold, revenue basis, review threshold, compilation threshold, fee summary, due date, extension info, primary sources, verified date.

**Attorney review memo** (1–3 pages) addressing:

- Definitional variances across states
- Guidance-only items not backed by statute
- Statute-vs-instruction conflicts
- Lowest thresholds and strictest deadlines
- Recommended re-verification cadence

## Post-Draft Alignment

After delivering initial matrix, confirm:

1. Does the jurisdiction list match actual registration footprint?
2. Is the revenue figure and Form 990 line reference correct?
3. Expand scope to professional fundraiser/solicitor thresholds?
4. Different output format needed (CSV, JSON, spreadsheet)?

## Quality Checklist

- [ ] Every threshold has a statutory/regulatory citation or is marked [VERIFY]
- [ ] Revenue basis term captured verbatim per state — not normalized away
- [ ] Form 990 line mapping provided for each revenue definition
- [ ] Fee schedules sourced from official agency pages
- [ ] Extension mechanisms specified (not just Yes/No)
- [ ] Decision log maintained for all ambiguities
- [ ] Statute-vs-instruction conflicts noted and resolved
- [ ] Last-verified date recorded per state
- [ ] No fabricated thresholds, fees, or deadlines

## Pitfalls

- **Fees change without legislation** — always check state charity bureau websites for current schedules
- **Revenue ≠ contributions** — the definitional difference can shift which tier applies
- **Staleness** — mark any source not verified within 90 days for re-verification
- **Organization bylaws** may impose lower thresholds than state-mandated levels
- Mark all uncertain citations with [VERIFY]

**Required disclaimer on every output:**

> THIS RESEARCH REQUIRES INDEPENDENT VERIFICATION OF ALL THRESHOLDS, DEADLINES, AND STATUTORY CITATIONS BY A QUALIFIED ATTORNEY OR CPA BEFORE RELIANCE, AND DOES NOT CONSTITUTE LEGAL ADVICE.