Charitable Registration Audit Requirements

Fundraising Compliance Guide
Fundraising Compliance Info by State
Definition - Audited Financial Statements
A report by an independent auditor, attesting to the fairness of presentation of the financial statements and related disclosures.
Definition - Reviewed Financial Statements
A more limited report that verifies that there are no material modifications that need to be made to an entity’s financial statements for them to be in conformity with the application reporting framework.

Twenty-four jurisdictions require audited financial statements to be included with charitable registration applications. However, only organizations that exceed the jurisdiction’s revenue or contributions threshold need to provide the audit. Still, other jurisdictions provide more flexible requirements, for instance:

  • Alaska requires audits only upon request
  • North Carolina and Virginia both allow the IRS Form 990 to take the place of the audit
  • Illinois and Maryland have set audit thresholds, but they can be changed if the applicant meets certain criteria. Illinois lowers the audit threshold for organizations using professional fundraisers.
  • Maryland also lowers the audit threshold for private foundations associated with any Maryland jurisdiction agency.

Along with the audit requirements, nine jurisdictions may also request reviewed financial statements, usually at a lower threshold than the audit. Reviewed financial statements are easier and less costly than audits to obtain, but they are no less important in terms of getting a registration approved.

Alabama

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Alaska

Audit Required?

Yes

Audit Threshold

Conditional

Review Threshold

-

Notes

Provide upon request by state

Arizona

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Arkansas

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

-

Notes

California

Audit Required?

Yes

Audit Threshold

$2,000,000 Gross Revenue

Review Threshold

-

Notes

Government grants do not count as gross revenue in this instance. California also requires charities with greater than $2 million in revenue to establish an audit committee.

Colorado

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Connecticut

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

-

Notes

Delaware

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

District of Columbia

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Florida

Audit Required?

Yes

Audit Threshold

$1,000,000 Annual Contributions

Review Threshold

$500,000 Annual Contributions

Notes

Georgia

Audit Required?

Yes

Audit Threshold

$1,000,000 Annual Contributions

Review Threshold

$500,000 Annual Contributions

Notes

Hawaii

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

-

Notes

Also required to submit if the charity is required pursuant to a government authority or third party

Idaho

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Illinois

Audit Required?

Yes

Audit Threshold

$300,000 Annual Contributions

Review Threshold

-

Notes

$25,000 threshold if using a professional fund-raiser. Contributions include gross amounts of cash plus gross sums paid by the public for merchandise, special events, and services.

Indiana

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Iowa

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Kansas

Audit Required?

Yes

Audit Threshold

$500,000 Annual Contributions

Review Threshold

-

Notes

Kentucky

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Louisiana

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Maine

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Maryland

Audit Required?

Yes

Audit Threshold

$500,000 Annual Contributions

Review Threshold

-

Notes

$100,000 annual contribution threshold for private foundations associated with any Maryland state agency

Massachusetts

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

$200,000 Gross Revenue

Notes

Michigan

Audit Required?

Yes

Audit Threshold

$525,000 Annual Contributions

Review Threshold

$275,000 Annual Contributions

Notes

Minnesota

Audit Required?

Yes

Audit Threshold

$750,000 Gross Revenue

Review Threshold

-

Notes

Required for renewal only.

Mississippi

Audit Required?

Yes

Audit Threshold

$500,000 Annual Contributions

Review Threshold

$250,000 Annual Contributions

Notes

Missouri

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Montana

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Nebraska

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Nevada

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

New Hampshire

Audit Required?

Yes

Audit Threshold

$1,000,000 Gross Revenue

Review Threshold

-

Notes

Organizations with total revenues of $500,000 to $1,000,000 must file the most recent annual financial statement.

New Jersey

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

-

Notes

New Mexico

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

-

Notes

New York

Audit Required?

Yes

Audit Threshold

$750,000 Gross Revenue

Review Threshold

$250,000 Gross Revenue

Notes

Required for renewal only.

North Carolina

Audit Required?

Yes

Audit Threshold

Conditional

Review Threshold

-

Notes

Submit either a 990, audit, or state financial report form

North Dakota

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Ohio

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Oklahoma

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Oregon

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Pennsylvania

Audit Required?

Yes

Audit Threshold

$300,000 Gross Revenue

Review Threshold

$100,000 Gross Revenue

Notes

Rhode Island

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

-

Notes

South Carolina

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

South Dakota

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Tennessee

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

-

Notes

Texas

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Utah

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Vermont

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

Virginia

Audit Required?

Yes

Audit Threshold

Conditional

Review Threshold

-

Notes

Submit either a 990 or audit

Washington

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

West Virginia

Audit Required?

Yes

Audit Threshold

$500,000 Gross Revenue

Review Threshold

$200,000 Gross Revenue

Notes

Wisconsin

Audit Required?

Yes

Audit Threshold

$500,000 Annual Contributions

Review Threshold

$300,000 Annual Contributions

Notes

Wyoming

Audit Required?

No

Audit Threshold

-

Review Threshold

-

Notes

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