The Pa BCO-23 form, also known as the Pennsylvania Public Disclosure Form, is a comprehensive document required for certain organizations not obligated to file an IRS 990 Return. It encompasses detailed sections on gross contributions, other income, expenses, net assets, and salaries and expense allowances, ensuring transparency and accountability in their financial activities. By mandating the completion of this form, Pennsylvania enforces a structure for organizations to systematically report their total income, expenditures, and changes in net assets or fund balances.
The Pennsylvania Public Disclosure Form BCO-23 serves as a critical component in maintaining transparency and accountability among charitable organizations operating within the state. Designed to furnish the public and regulating bodies with a comprehensive overview of an organization's financial health and operational efficiency, this form plays a pivotal role in the nonprofit sector. It itemizes an organization's gross contributions, revenue streams from various sources such as program services and special events, and delineates the usage of these funds across program services, administrative expenses, and fundraising efforts. Additionally, the BCO-23 captures information related to net assets, adjustments to these assets over the reporting period, and compensation details for the highest-paid employees and officers, thereby offering a holistic view of the organization's financial and operational posture. Organizations not required to file an IRS 990 Return find this form particularly useful, as it ensures compliance with state requirements while promoting fiscal responsibility and governance practices that underpin public confidence in nonprofit endeavors.
(Rev. 5-09)
PENNSYLVANIA PUBLIC DISCLOSURE FORM BCO-23
ORGANIZATION NAME:
CERTIFICATE NUMBER:
FOR FISCAL YEAR ENDED:
Part I: Gross Contributions
1)
General Contributions
1
2)
Gross Receipts from Special Events
2
3)
Contributions from Affiliates
3
4)
Contributions Received from Federated Fundraising Organizations
4
5)
Receipts from Membership Dues in Excess of Bona Fide Dues
5
6)
Gross Contributions (add lines 1 through 5)
6
Part II:
Other Income
7)
Program Service Revenues
7
8)
Bona Fide Membership Dues and Assessments
8
9)
Government Grants and Contracts
9
10)
Miscellaneous Income
10
11)
Total Income (add lines 6 through 10)
11
Part III:
Expenses
12)
Program Services
12
13)
Administrative Expenses
13
14)
Fundraising Expenses
14
15)
Payments to Affiliated Organizations
15
16)
Other Expenses from Special Events (other than fundraising expenses)
16
17)
Miscellaneous Expenses
17
18)
Total Expenses (add lines 12 through 17)
18
Part IV: Net Assets
19)Excess or (Deficit) for the Year (subtract line 18 from line 11)
20)Net Assets or Fund Balances at Beginning of Year
21)Other Changes in Net Assets or Fund Balances (attach explanation)
22)Net Assets or Fund Balances at End of Year (combine lines 19, 20, and 21)
19
20
21
22
(See Next Page for "Salaries and Expense Allowance Statement")
SALARIES AND EXPENSE ALLOWANCE STATEMENT
Report salaries paid and expenses allowed to the five highest paid employees. Additionally, include salaries paid and expenses allowed to any and all compensated officers of the organization.
23) Salaries and Expense:
Name of Individual
Title and Average Hours Per Week
Devoted to Position
Five Highest Paid Employees:
1.
2.
3.
4.
5.
Salary
Expense Account and
Other Allowances
Officers:
INSTRUCTIONS FOR COMPLETING FORM BCO-23
An organization which is not required to file an IRS 990 Return must file a BCO-23 Form. This includes an organization that files a 990N, 990EZ, or 990PF, or an affiliate whose parent organization files a 990 group return must file a BCO-23 Form in addition to filing a copy of the organization’s IRS 990 Return.
1)General Contributions: Enter the total gross contributions, gifts, grants and similar amounts received, including contributions from individuals, commercial co-ventures, corporations and other businesses, foundations, public charities, exempt organizations (do not include amounts received from fundraising organizations or affiliates), trusts, and estates. Also include noncash contributions such as donated land, buildings, property, equipment, and materials (exclude the value of services donated to the organization and the free use of materials, equipment or facilities). Noncash items should be valued at their fair market values on the date of their contribution to the organization.
Exclude government grants and contracts.
2)Gross Receipts from Special Events: Enter the total gross amounts received from all special events and activities conducted by the organization, or on its behalf. Include amounts received from events that were conducted primarily to raise funds to finance the organization’s exempt activities. Events and activities include, but are not limited to, carnivals, dinners, dances, raffles, shows, sales to the public, bingo games, and other gambling activities. Do not reduce the total gross amounts received by any expenses related to the events or activities. These expenses should be included on lines 14 or 16.
3)Contributions from Affiliates: Enter the total contributions received from associated organizations such as affiliates, national organizations, or parent organizations.
4)Contributions Received from Federated Fundraising Organizations: Enter the total contributions received from fundraising organizations such as United Way, United Fund, and Community Chests.
5)Receipts from Membership Dues in Excess of Bona Fide Dues: Include only those dues that represent contributions from the public. Dues are considered to be contributions to the extent that they exceed the monetary value of the benefits available to the member. Do not include the amounts received up to the value of the benefits available to the member. These amounts are bona fide membership dues and should be included on line 8.
6)Gross Contributions: Add lines 1 through 5.
7)Program Service Revenues: Enter the gross amount of fees and revenues earned by the organization for providing services or performing activities that fulfill the organization’s stated mission or purpose. Include income earned for providing a government agency with a service, product, or facility that directly benefited only the government agency.
Do not include any amounts received from a government agency that are used to serve the needs of the general public. These amounts should be included on line 9.
8)Bona Fide Membership Dues and Assessments: Include only those dues and assessments received that do not exceed the monetary value of the benefits available to the member. Do not include dues received by the organization to the extent that they exceed the monetary value of the benefits available to the member. These amounts should be included on line 5. If a member pays dues mainly to support the organization (not to obtain benefits) include this amount on line 5.
9)Government Grants and Contracts: Include total grants or other payments received from a federal, state, or local governmental unit if its primary purpose is to enable the organization to provide a service, product, or maintain a facility for the primary benefit of the general public. Do not include any amounts received that are used to serve the needs of the governmental agency. These amounts should be included on line 7.
CONTINUED ON PAGE #13
10)Miscellaneous Income: This figure represents the total income from all sources not covered by lines 1 through 5 and lines 7 through 9, including, but not limited to, interest, dividends and interest from securities, gross rental income, gross amounts from the sale of assets other than inventory, and gross sales of inventory (this does not include items that were sold through a special event or activity).
11)Total Income: Add lines 6 through 10.
12)Program Services: Include total costs of services or activities performed by the organization that fulfill its charitable purposes. Include any donations, grants, scholarships, or similar amounts given out in fulfillment of the organization’s stated purposes. United Way and similar fundraising organizations should include allocations to participating agencies on this line. Include allocated administrative expenses, if any. See instructions to line 13.
13)Administrative Expenses: Include costs related to the overall administration and management of the organization.
If a portion of these costs relate to program services or fundraising, a reasonable allocation should be made among the applicable functions.
14)Fundraising Expenses: Include costs incurred in soliciting contributions, gifts, grants, and similar amounts. Fundraising expenses normally include, but are not limited to, costs of acquiring and maintaining mailing lists, the cost of printing and mailing solicitation materials, as well as the expense of unsolicited merchandise sent out to encourage contributions. Include fundraising expenses related to the organization’s special events. Do not include expenses directly attributable to furnishing the goods or services sold at a special event. These expenses should be included on line 16. Include allocated administrative expenses, if any. See instructions to line 13.
15)Payments to Affiliated Organizations: Include all payments to organizations affiliated, associated, or closely- related to the reporting organization. Include dues paid to an affiliated state or national organization, including predetermined quota support and dues.
16)Other Expenses from Special Events (other than fundraising expenses): Include only those expenses directly attributable to the goods or services the buyer received from a special event. Do not include fundraising expenses related to the organization’s special events. These expenses should be included on line 14.
17)Miscellaneous Expenses: Include expenses that are not reportable on lines 12 thru 16, including all expenses that are attributable to the income reported on line 10.
18)Total Expenses: Add lines 12 through 17.
19)Excess or (Deficit) for the Year: Enter the difference between lines 11 and 18. If line 18 is greater than line 11, enter the difference in parentheses.
20)Net Assets or Fund Balances at Beginning of Year: Organizations using fund accounting should report the total sum of the various fund balances at the beginning of the reporting year on this line. Organizations not using fund accounting should report their net assets, which is the difference between total assets and total liabilities. These amounts should agree with the ending fund balance of the prior fiscal year.
21)Other Changes in Net Assets or Fund Balances: Attach a schedule explaining any changes in net assets or fund balances between the beginning and end of the year that were not accounted for by the amount on line 19. Amounts to report here include, but are not limited to, adjustments of earlier years’ activity, unrealized gains and losses on investments carried at market value, and any differences between fair market value and book value of property given out as an award or grant.
22)Net Assets or Fund Balances at End of Year: Combine lines 19, 20, and 21.
23)Salaries and Expense Allowance Statement: Refer to Form BCO-23 for instructions.
After completing and submitting the PA BCO-23 form, organizations are taking an essential step toward transparency and accountability. The form details the financial activities of an organization, including income, contributions, and expenses, over a fiscal year. This submission is crucial not only for compliance with state regulations but also as a public declaration of the organization's fiscal health and operations. Following the form submission, organizations should prepare for any follow-up inquiries and keep a copy of this document along with their financial records for reference in future filings or audits. Below is a step-by-step guide on how to complete the PA BCO-23 form accurately.
Completing the PA BCO-23 form can seem daunting, but by following these steps, organizations can ensure that they meet the requirements set forth by the Commonwealth of Pennsylvania. Remember, accuracy and thoroughness are key in financial reporting to maintain transparency and uphold the integrity of your organization.
What is the Pa BCO-23 form used for?
The Pa BCO-23 form, also known as the Pennsylvania Public Disclosure Form, is designed for organizations to report their income, expenses, and changes in net assets or fund balances for a specific fiscal year. This form allows for transparent disclosure of financial activities and is required for certain organizations that do not file an IRS 990 Return, including those filing 990N, 990EZ, or 990PF. It ensures accountability and informs the public about the organization's financial health and operations.
Who needs to file the Pa BCO-23 form?
Organizations not required to file an IRS 990 Return must file the Pa BCO-23 form. This includes entities that submit IRS forms 990N, 990EZ, or 990PF. Affiliates whose parent organization files a 990 group return also need to submit this form. Essentially, it is required by nonprofits and charitable organizations operating within Pennsylvania that seek to maintain transparency about their financial activities.
What information is required in Part I: Gross Contributions of the form?
Part I: Gross Contributions requires organizations to enter the total gross contributions, gifts, grants, and similar amounts received during the fiscal year. This includes contributions from various sources like individuals, corporations, foundations, and excludes funds from fundraising organizations or affiliates. The section also mandates reporting noncash contributions at their fair market value, excuding values of donated services or the use of facilities and equipment.
How are "Special Events" income reported on the Pa BCO-23 form?
Income from "Special Events" is reported under "Gross Receipts from Special Events." Organizations should include the total gross amounts received from events primarily conducted to raise funds for the organization's exempt activities. It encompasses income from carnivals, dinners, raffles, and similar events. Importantly, the total should not reduce by related expenses, which are reported separately on the form.
Can membership dues be included in the Gross Contributions section?
Membership dues can partially be included in the Gross Contributions section, specifically on line 5, which captures "Receipts from Membership Dues in Excess of Bona Fide Dues." This line is for dues that represent contributions beyond the value of benefits the member receives. Bona fide membership dues, reflecting the value of benefits to members, are reported separately in Part II, ensuring a clear distinction between contributions and member payments for benefits.
What constitutes "Program Service Revenues" on the form?
"Program Service Revenues" refers to the gross amount of fees and revenues earned by the organization for providing services or performing activities aligned with its stated mission or purpose. This includes services, products, or facilities provided specifically for a government agency's benefit, excluding amounts used to serve the general public. It's a measure of how the organization earns income through its primary exempt activities.
How should organizations handle "Miscellaneous Expenses" in the Pa BCO-23 form?
"Miscellaneous Expenses" should include any expenses not explicitly covered by the other lines in the Expenses section. This could involve costs attributable to reported income in the "Miscellaneous Income" category or any other expenses not directly related to program services, administration, or fundraising. Organizations are encouraged to include a comprehensive list of such expenses to ensure full disclosure of financial activities.
Filling out the Pennsylvania Public Disclosure Form BCO-23 is a crucial task for many organizations. However, mistakes can occur during the process, potentially leading to issues with compliance or the misrepresentation of an organization's financial health. Here are nine common mistakes people make when completing the form:
To ensure accuracy and compliance, organizations must carefully review the instructions for each section of the BCO-23 form and double-check their figures before submission. Avoiding these common mistakes will help present a true financial picture of the organization.
When preparing and filing the Pennsylvania Public Disclosure Form BCO-23, organizations often need to complement it with additional documents to ensure a thorough and accurate reporting process. These additional forms and documents play a crucial role in providing a comprehensive view of an organization's financial and operational status, making it easier for regulatory bodies to assess compliance with local laws and regulations.
Together with the BCO-23 form, these documents form a toolkit that organizations can use to not only fulfill legal requirements but also to demonstrate their commitment to transparency, accountability, and ethical governance. For organizations seeking to maintain their reputation and ensure compliance with state regulations, understanding and preparing these additional documents is crucial. By doing so, organizations not only adhere to the law but also build trust with their supporters, beneficiaries, and the general public.
The Pa Bco 23 form is often considered in the context of its similarities to other key documents that are pivotal in the realm of nonprofit organizations. This form, integral for organizations within Pennsylvania for public disclosure, draws parallels with various federal documents in terms of structure and content, notably the IRS Form 990 and financial statements typically audited by certified public accountants. Each document, while serving unique purposes, converges on the principles of transparency, accountability, and compliance within the sector.
IRS Form 990 is arguably the closest relative to the Pa Bco 23 form. Both documents are comprehensive in nature, designed to provide a detailed account of an organization's financial activities over the fiscal year. They share several sections, such as detailed income breakdowns, including contributions and grants, expenses related to program services, administrative and fundraising expenses, and a snapshot of the organization's financial standing at the beginning and end of the year. Where they diverge, however, is in their audience and scope; the IRS Form 990 serves a federal audience, including the IRS and the general public nationwide, while the Pa Bco 23 targets state-level oversight in Pennsylvania, ensuring local compliance and public transparency within the state.
When we turn to audited financial statements, the parallel is more about the essence than the exact form. Audited financial statements provide a certified examination of an organization's financial condition and operations, typically encompassing a balance sheet, statement of activities (or income statement), and cash flows, among others. Like the Pa Bco 23, these statements detail revenues, expenses, assets, and liabilities, offering a clear view of an organization's fiscal health. However, audited financial statements bring a level of third-party verification and assurance that goes beyond the self-reported nature of the Pa Bco 23 and IRS Form 990, serving as a critical tool for accountability and trust among stakeholders.
When preparing the Pennsylvania BCO-23 form, an essential document for disclosing financial information about your nonprofit organization, accuracy and clarity in reporting cannot be overstated. Here are the things you should and shouldn't do to ensure the process is smooth and the form is correctly completed.
Things You Should Do:
Things You Shouldn't Do:
There are several common misconceptions about the Pennsylvania Public Disclosure Form BCO-23 that can lead to confusion for organizations trying to comply with state requirements. Understanding these misconceptions is crucial for accurate reporting and ensuring that charitable organizations meet the state's legal obligations.
Misconception 1: The BCO-23 form is only for large organizations. This is incorrect. In Pennsylvania, a wide range of charitable organizations are required to file the BCO-23 form, not just large ones. This includes smaller organizations that may not be required to file a full IRS 990 return but instead file a 990N, 990EZ, or 990PF. Any charitable organization operating within the state, regardless of its size, needs to familiarize itself with the filing requirements of the BCO-23 form to ensure compliance.
Misconception 2: Only cash donations need to be reported on the form. This is a common misunderstanding. The form requires organizations to report both cash and noncash contributions, including donated goods, land, and other property. These noncash contributions should be valued at their fair market value at the time of the donation. Excluding noncash donations from the BCO-23 can result in inaccurate reporting of an organization’s financial health.
Misconception 3: Fundraising expenses can be deducted from gross receipts on the form. This is not the case. Gross receipts from special events and other fundraising activities must be reported in full, without deducting expenses related to those events. Fundraising expenses are reported separately on the form, allowing for a clear picture of how much it costs an organization to raise funds versus how much is actually raised.
Misconception 4: Salaries and expenses for all employees must be reported. The reporting requirements on the BCO-23 form specifically pertain to the salaries and expenses of the five highest paid employees and all compensated officers of the organization. It's not necessary to report this information for every employee, which some organizations mistakenly believe is required. This targeted reporting helps maintain a balance between transparency and privacy.
Clearing up these misconceptions is important for organizations to accurately complete the BCO-23 form and remain in good standing. By understanding the specific requirements and common misinterpretations, organizations can better navigate the complexities of nonprofit reporting in Pennsylvania.
Filling out the PA BCO-23 form accurately is important for transparency and for meeting the state of Pennsylvania's requirements for certain organizations. Here are eight key takeaways to consider when completing this form:
Approaching the PA BCO-23 form with these considerations in mind will aid in fulfilling legal obligations while promoting transparency and accountability within Pennsylvania's regulatory framework.
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