HB1197 was signed into law by the Governor on June 30, 2023. The bill changes the Illinois Charitable Audit Requirements.
The Illinois Attorney General has required an audit for charitable organizations with revenue over $300,000 for many years. This bill increases the threshold to $500,000 and will require reviewed financial statements for organizations with revenue from $300,000-$500,000.
Additional guidance and further clarification on the effect date is expected in coming months. It is still to be determined if that means all audits performed after January 1, 2024 will fall under the new bill, or if it will apply for all fiscal years ending on or after January 1, 2024. We will post updates as they occur.
This bill will go into effect on January 1, 2024