New Mexico and Mississippi Ease Audit Thresholds for Nonprofits

Most states require specific charitable organizations to submit audited financial statements each year. These audits are required in connection with charitable registration. This means organizations who solicit in multiple states must comply with numerous state audit requirements. The specific threshold requiring a charitable organization’s submission of an audit varies from state to state. Meeting state audit requirements will soon become easier for charitable organizations fundraising in Mississippi and New Mexico. 

The new Mississippi audit requirement raises the state’s audit threshold from $500,000 to $750,000. Charitable organizations with total donations over $750,000 must have an audit by an independent certified public accountant. Charitable organizations with total donations between $250,000 and $750,000 must have a financial review by an independent certified public accountant. Mississippi Senate Bill 2077 is effective July 1, 2023.

New Audit Requirements

The new New Mexico audit requirement raises the state’s audit threshold from $500,000 to $750,000. An independent certified public accountant must audit charitable organizations with total expenses over $750,000. New Mexico Senate Bill 240 is effective January 1, 2024. 

Ongoing tracking

State laws requiring independent financial audits for charitable organizations vary. Nonprofits must monitor changes to audit thresholds in states where they are fundraising. Failure to submit proper financial statements could result in delayed filings, fines, penalties, and even loss of the right to solicit in the state. 

If you have any questions about your organization’s state charitable registration or other state requirements, contact us 

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