Changes to Wisconsin Form 1952

A charitable organization that solicits contributions is required to be registered in Wisconsin and must file an annual report if it has received more than $5,000 in contributions in its most recently completed fiscal year. There are two different annual reporting forms (Form #308 and Form #1952) and an affidavit (Form #1943) within the Wisconsin Department of Regulation & Licensing that allow for this requirement to be fulfilled.

Wisconsin Form #1952, Wisconsin Supplement to Financial Report on Form other than Form #308 ("Form #1952") is the most commonly used form among the two different annual reporting forms because of its similarity and relationship to IRS Form 990 Return of Organization Exempt From Income Tax ("IRS Form 990"). Form #1952 may be filed if the charitable organization filed either IRS Form 990 or a similar financial report from another state for its most recently competed fiscal year.

Recent changes affect additional documentation, if any, required to be filed with Form #1952. These changes are effective for all fiscal year end dates of October 31, 2007 or later. The amount of contributions received by a charitable organization during the applicable fiscal year determines the extent of additional documentation required to accompany Form #1952.

Previously, audited financial statements, which include an independent auditors opinion from a certified public accountant, were required to accompany Form #1952 if the charitable organization received more than $100,000 in contributions during its most recently completed fiscal year. However, if the charitable organization received $75,000 or more from a single contributor in that same period, the threshold increased to $175,000.

The threshold amount of contributions received has been refined into three different amounts, and those amounts now determine either two different levels of required additional documentation or no requirement of additional documentation.

A charitable organization that now received $400,000 or more in contributions in its most recently completed fiscal year will continue to be required to submit audited financial statements, which include an independent auditors opinion from a certified public accountant. For charitable organizations who received between $200,000 and $399,999 in contributions in its most recently completed fiscal year, a review, which is substantially less in scope than an audit, is now required. For those charitable organizations who received less than $200,000 in contributions in its most recently completed fiscal year, no additional documentation is required.

Related forms and additional information can be obtained from the Department of Wisconsin Regulation and Licensing's website (http://drl.wi.gov/prof/char/def.htm).

Wegner LLP CPAs & Consultants provides audit and review services for over 400 charitable organizations and prepares many IRS Form 990s and related Form #1952s. We would be happy to discuss your needs. Please call Glenn Miller, CPA, Partner at (608) 442-1940 or email at glenn.miller@wegnercpas.com.