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*sb0354*
SENATE BILL 354
C2 (6lr1901)
ENROLLED BILL
— Judicial Proceedings/Economic Matters —
Introduced by Senators Kagan and Waldstreicher
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at __ ______________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Business Regulation – Charitable Organizations – Audit and Review Thresholds 2
FOR the purpose of increasing the minimum gross income amounts from charitable 3
contributions at which a charitable organization must include a certain audit or a 4
certain review with the charitable organization’s registration statement; increasing 5
the amount of cash receipts from charitable contributions the Secretary of State may 6
accept an affidavit attesting to under certain circumstances; increasing the 7
maximum amount of gross income of a charitable organization at which the 8
Secretary of State may require an audit or review of the charitable organization; and 9
generally relating to audit and review thresholds for charitable organizations. 10
BY repealing and reenacting, without amendments, 11
Article – Business Regulation 12
Section 6–402(a) 13
Annotated Code of Maryland 14
2 SENATE BILL 354
(2024 Replacement Volume and 2025 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Business Regulation 3
Section 6–402(b)(7), (c)(1)(v), and (d) 4
Annotated Code of Maryland 5
(2024 Replacement Volume and 2025 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That the Laws of Maryland read as follows: 8
Article – Business Regulation 9
6–402. 10
(a) A registration statement shall be on the form that the Secretary of State 11
provides. 12
(b) Except as provided in subsection (c) of this section, the registration statement 13
shall contain or be accompanied by: 14
(7) (i) an audit by an independent certified public accountant if the 15
gross income from charitable contributions in the most recently completed fiscal year is at 16
least [$750,000] $1,000,000; or 17
(ii) a review by an independent certified public accountant if the 18
gross income from charitable contributions in the most recently completed fiscal year is at 19
least [$300,000] $500,000 $400,000 but less than [$750,000] $1,000,000; 20
(c) The Secretary of State may accept other documentation in place of any item 21
required under subsection (b) of this section, including, in place of the audit or review 22
required by subsection (b)(7) of this section, supporting documents indicating, and an 23
affidavit attesting, that: 24
(1) the charitable organization: 25
(v) has cash receipts from charitable contributions not exceeding 26
[$300,000] $500,000 $400,000 and amounting to 20% or less of the charitable 27
organization’s gross income during the immediately preceding fiscal year that are used for 28
program services or management and general expenses of the charitable organization, as 29
set forth under COMAR 01.02.04.04.A and C; 30
(d) The Secretary of State may require an audit or review if the amount of gross 31
income is less than [$750,000] $1,000,000. 32
SENATE BILL 354 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2026. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.