SB484

Senate Bill 484 modifies Arkansas law regarding the reporting requirements for charitable organizations. Specifically, it amends Arkansas Code § 4-28-403(b) to clarify the definition of 'contribution' in the context of financial audit requirements. The bill stipulates that certain forms of legacy giving, specifically bequests from a decedent's estate and testamentary distributions from a trust, are to be excluded from the definition of a contribution. By excluding these types of income, the legislation changes how a charity's total contribution threshold is calculated for the purpose of triggering the requirement to submit audited financial statements. This is intended to prevent one-time estate-related gifts from forcing smaller charities to incur the administrative costs of a formal audit if their operational or recurring revenue does not meet the legal threshold.