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Summary: Under current law, state employee charitable campaigns allow a state employee to direct an amount out of their paycheck that they chose and have the money directly contributed to an approved charitable organization. Charitable organizations have to apply annually for review to be on the list to receive contributions. The law requires that these non-profit organizations either have a CPA review their internal operations or have an audit if their budget exceeds $100,000. HB 2252 increases this threshold to $250,000.
Analysis: HB 2252 supports individual liberty by making it easier for state employees to make charitable contributions to certain organizations and limits government by easing regulatory burdens on some of those organizations. Because smaller charities have fewer resources at their disposal, the cost of a full annual audit significantly impacts their ability to do charitable work. By increasing the threshold for requiring an audit to those organizations with a budget above $250,000, it will be easier for small charitable organizations to participate in program and receive contributions from state employees. Program participants with budgets below $250,000 would still have to submit to an annual review by a CPA in order to remain in the program. This provides for continued transparency at an affordable cost for small organizations. By lowering the cost burden, potentially more non-profit organizations will receive funding and state employees will have an expanded menu of choices for their direct payment charitable giving. We encourage the Legislature to vote for HB 2252.