Why Pennsylvania Compliance Has Tiered Reviews

Pennsylvania charitable solicitation regulation runs through the Bureau of Corporations and Charitable Organizations within the Department of State. The Bureau registers every charitable organization soliciting in the Commonwealth, reviews annual BCO-10 filings, and enforces the Solicitation of Funds for Charitable Purposes Act. Pennsylvania is unusual in having a four-tier financial review structure — not just an audit threshold and a no-audit zone, but compilation and review tiers in between.

The questions and answers below address the issues that come up most often for Executive Directors and finance staff at Pennsylvania nonprofits.

What This FAQ Covers

Initial registration — when to file BCO-10, what to attach, how long approval takes
BCO-10 mechanics — due date, fee tier, attachments, and the four-tier financial review structure
Audit and review thresholds — $750,000 audit, $250,000 review, $100,000 compilation
Out-of-state solicitation — when an out-of-state nonprofit must register
Exemptions — religious, educational, hospital, and small-organization exemptions under § 162.6
Adjacent filings — professional fundraiser registration, BCO-9 for exempt organizations

For the operational checklist version, see the Pennsylvania compliance checklist. For software comparison, see the Pennsylvania grant management software guide.

A Note on Enforcement

The Bureau is administrative, not adversarial. It issues notices before suspension. But the consequences of suspension are real: loss of solicitation rights, ineligibility for state contracts and grants, and ongoing late fees that compound monthly. Treat the BCO-10 deadline as a hard constraint and the Department of State charity database as the single source of truth that funders consult.

Implementation realities and migration notes

Mid-sized nonprofits in this category typically inherit a tangle of restricted-fund histories: federal pass-throughs, state agency contracts, family-foundation grants, and partner funding stretching back many years. Migrating that history cleanly is not optional — auditors and program officers will ask questions that require a year-by-year reconstruction. Implementation timelines run six to ten weeks for organizations that scope the data inventory before signing. Cutting corners on migration to chase a fast launch usually surfaces gaps during the next single-audit cycle, and the cost of fixing those gaps after the fact is meaningfully higher than doing migration right at the start.

Plan accordingly, and require any vendor on the shortlist to demonstrate restricted-fund handling, grant tracking, and donor record migration on a representative sample of your actual historical data before you sign. Vendors that decline to demo on real data are filtering you out for a reason. The demo on your data is where the gaps surface — both the gaps in the vendor’s product and the gaps in your existing records that you will need to clean up regardless of which system you choose. Use that demo to set realistic expectations with the board and the audit committee about timeline and scope before contracts get signed.

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Pennsylvania BCO-10 audit threshold: $750,000 in gross national contributions triggers a mandatory CPA audit.

Source: Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations

BCO-10 review threshold: $250,000 to $750,000 in gross national contributions requires CPA-reviewed financial statements.

Source: Pennsylvania Solicitation of Funds for Charitable Purposes Act, 10 P.S. § 162.1 et seq.

BCO-10 filing fee: $15 (smallest filers) up to $250 (largest organizations), tiered by gross contributions.

Source: Pennsylvania Department of State — Charitable Organizations

BCO-10: Pennsylvania Charitable Organization Registration Statement filed annually with the Bureau of Corporations and Charitable Organizations within the Pennsylvania Department of State.

BCO-9: Pennsylvania Institution of Higher Education or Public Charity Exemption Statement, filed by exempt organizations under 10 P.S. § 162.6.

Solicitation of Funds for Charitable Purposes Act: Pennsylvania statute (10 P.S. § 162.1 et seq.) governing charitable solicitation registration, professional fundraiser regulation, and audit and review thresholds.

Bureau of Corporations and Charitable Organizations: The bureau within the Pennsylvania Department of State that registers and oversees charitable organizations soliciting in the Commonwealth.

“Pennsylvania's tiered review structure is one of the more complex in the country. The thresholds use gross national contributions, not Pennsylvania-only revenue. Organizations growing through national grants can cross the audit threshold without realizing it.”

Compliance practitioner , Nonprofit attorney at Pennsylvania-licensed practice

“BCO-10 late fees compound monthly. A missed deadline that drifts six months can become a meaningful financial penalty on top of the suspension risk. Treat the May 15 calendar-year deadline as a hard constraint.”

Audit specialist , Nonprofit audit partner at Regional CPA firm

Q&A

What is the most missed Pennsylvania compliance filing?

The annual BCO-10. Organizations focus on federal Form 990 and miss that BCO-10 is a separate state filing with its own deadline, fee, and tiered review and audit requirements.

Q&A

Can a Pennsylvania nonprofit operate without registering with the Bureau?

No, not legally, if it solicits from Pennsylvania residents. Operating without registration exposes the organization and its directors to penalties under the Solicitation of Funds for Charitable Purposes Act and disqualifies the organization from many Pennsylvania foundation grants.

Frequently asked

Frequently Asked Questions

Do I need to register with Pennsylvania to solicit donations?

Yes, if you solicit from Pennsylvania residents. Pennsylvania's Solicitation of Funds for Charitable Purposes Act (10 P.S. § 162.1 et seq.) requires every charitable organization that solicits contributions from Pennsylvania residents to register with the Bureau of Corporations and Charitable Organizations within the Pennsylvania Department of State before soliciting. Registration is required regardless of the state where you are incorporated.

Which form do I file to register initially in Pennsylvania?

Form BCO-10 (Charitable Organization Registration Statement) filed with the Bureau of Corporations and Charitable Organizations. The same form is used for initial registration and annual renewal. Initial filings include attachments — Articles of Incorporation, Bylaws, IRS determination letter, and most recent IRS Form 990 — plus the registration fee, which is tiered by gross contributions.

What is BCO-10 and when is it due?

BCO-10 is the Pennsylvania Charitable Organization Registration Statement filed annually with the Department of State. It is due 4.5 months after fiscal year end — May 15 for calendar-year filers. The form requires basic financial information, a copy of IRS Form 990, and the appropriate financial statement attachment based on the audit and review tier.

What is Pennsylvania's audit threshold?

Under Pennsylvania's Solicitation of Funds for Charitable Purposes Act, a charitable organization with gross national contributions of $750,000 or more in a fiscal year must include audited financial statements prepared by an independent CPA with the BCO-10. The audit must be conducted in accordance with generally accepted auditing standards. Gross national contributions include contributions received from all sources, not just Pennsylvania.

Do I need a CPA review at lower revenue thresholds?

Yes. Pennsylvania has a tiered review structure: $250,000 to $750,000 in gross national contributions requires CPA-reviewed financial statements; $100,000 to $250,000 requires compiled financial statements; under $100,000 requires only internally prepared financial statements. The thresholds use national, not Pennsylvania-only, contributions.

What is the BCO-10 fee?

The fee is tiered by gross contributions, ranging from $15 for the smallest filers to $250 for the largest organizations. The fee is paid by check or money order to the Commonwealth of Pennsylvania.

What happens if I miss the BCO-10 deadline?

A late BCO-10 incurs late fees of $25 for each month or partial month past due, up to a maximum. Continued non-filing results in the Department of State suspending the organization's registration and revoking its right to solicit donations in Pennsylvania. Suspension also disqualifies the organization from receiving Pennsylvania state contracts and many foundation grants. Reinstatement requires filing all delinquent BCO-10s plus accrued late fees.

Do I register before or after IRS 501(c)(3) determination?

Before, ideally. Pennsylvania requires registration before solicitation begins. File BCO-10 with whatever federal status you have at that time — typically a pending Form 1023 application. Once you receive your IRS determination letter, submit a copy with the next annual BCO-10. Operating without state registration while waiting for IRS determination is a common compliance error.

How long does Pennsylvania initial registration take?

Initial registration typically takes 30 to 60 days from submission of a complete BCO-10 package. The Bureau processes filings in the order received. Status is verifiable on the Department of State's charity database.

What about online donations from Pennsylvania residents if my nonprofit is in another state?

If your nonprofit specifically targets Pennsylvania residents through email, mailing lists, paid ads, or social media, or if you receive substantial contributions from Pennsylvania on a repeated basis, you must register with the Bureau. A passive donate page accidentally receiving an occasional Pennsylvania gift is generally not enough to trigger registration — but the line is fact-specific.

Are there any exemptions from Pennsylvania charitable registration?

Yes. Religious organizations, accredited educational institutions, hospitals, certain veterans' organizations, and small organizations with under $25,000 in gross national contributions and no compensated solicitors are exempt under 10 P.S. § 162.6. Exempt organizations file Form BCO-9 (Institution of Higher Education or Public Charity Exemption Statement) instead.

Do Pennsylvania professional fundraisers have separate registration?

Yes. Professional fundraisers, professional solicitors, and fundraising counsel must register separately with the Bureau before soliciting in Pennsylvania. Charities that hire a professional fundraiser or solicitor must verify the fundraiser's registration and post a contract with the Bureau before the solicitation campaign begins. Failure to verify the fundraiser's registration is a separate violation.

What records do Pennsylvania nonprofits have to keep?

Pennsylvania charities must maintain records sufficient to substantiate the financial information reported on BCO-10 and Form 990. Standard practice: retain financial records for at least seven years, board minutes permanently, and donor restrictions documentation for the life of the restriction plus seven years after release.

Pennsylvania Nonprofit Compliance FAQ: BCO-10, Charitable Solicitation Registration, and Audit Thresholds