Charitable Registration Audit Requirements

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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
  • Florida, North Carolina, and Virginia all 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

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Alaska

More Info
Audit Required?
Yes

Audit Threshold

Conditional


Review Threshold
-

Notes

Provide upon request by state

Arizona

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Arkansas

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Gross Revenue


Review Threshold
-

Notes

California

More Info
Audit Required?
Yes

Audit Threshold

$2,000,000 Gross Revenue


Review Threshold
-

Notes

  • Required for RRF-1 renewal filings only.
  • 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

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Connecticut

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Gross Revenue


Review Threshold
-

Notes

Delaware

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

District of Columbia

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Florida

More Info
Audit Required?
Yes

Audit Threshold

$1,000,000 Annual Contributions


Review Threshold

$500,000 Annual Contributions


Notes

  • Organizations may elect to submit their IRS form 990 instead of an audited or reviewed financial statement.
  • Organizations that do not file a long Form 990 may be required to submit financial information on the Department's form.

Georgia

More Info
Audit Required?
Yes

Audit Threshold

$1,000,000 Annual Contributions


Review Threshold

$500,000 Annual Contributions


Notes

Hawaii

More Info
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

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Illinois

More Info
Audit Required?
Yes

Audit Threshold

$300,000 Annual Contributions


Review Threshold
-

Notes

  • If the organization uses a professional fundraiser to solicit in Illinois, the audit threshold is lowered to $25,000 in annual contributions.
  • Contributions include gross amounts of cash plus gross sums paid by the public for merchandise, special events, and services.

Indiana

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Iowa

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Kansas

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Annual Contributions


Review Threshold
-

Notes

Kentucky

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Louisiana

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Maine

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Maryland

More Info
Audit Required?
Yes

Audit Threshold

$750,000 Annual Contributions


Review Threshold

$300,000 Annual Contributions


Notes

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

Massachusetts

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Gross Revenue


Review Threshold

$200,000 Gross Revenue


Notes

Michigan

More Info
Audit Required?
Yes

Audit Threshold

$550,000 Annual Contributions


Review Threshold

$300,000 Annual Contributions


Notes

Minnesota

More Info
Audit Required?
Yes

Audit Threshold

$750,000 Gross Revenue


Review Threshold
-

Notes

Financial statements are required for renewal only.

Mississippi

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Annual Contributions


Review Threshold

$250,000 Annual Contributions


Notes

Missouri

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Montana

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Nebraska

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Nevada

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

New Hampshire

More Info
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 submit a GAAP financial statement prepared by the organization in-house or prepared by an accountant and reviewed and approved by the organization.

New Jersey

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Gross Revenue


Review Threshold
-

Notes

New Mexico

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Gross Revenue


Review Threshold
-

Notes

New York

More Info
Audit Required?
Yes

Audit Threshold

$1,000,000 Gross Revenue


Review Threshold

$250,000 Gross Revenue


Notes

Required for CHAR500 renewal filings only. If the organization is registered under 7A and raised less than $25,000 in NYS during a particular tax year, it may not be required to file financial statements of any kind.

North Carolina

More Info
Audit Required?
Yes

Audit Threshold

Conditional


Review Threshold
-

Notes

Organizations have the option to submit either Form 990, audited financial statements, or the North Carolina Annual Financial Report Form

North Dakota

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Ohio

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Oklahoma

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Oregon

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Pennsylvania

More Info
Audit Required?
Yes

Audit Threshold

$750,000 Gross Annual Contributions


Review Threshold

$250,000 Gross Annual Contributions


Notes

  • Compiled financials are required for charities with at least $100,000 in Gross Annual Contributions.
  • Organizations under $100,000 may be required to file internal financial statements.

Rhode Island

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Gross Revenue


Review Threshold
-

Notes

South Carolina

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

South Dakota

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Tennessee

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Gross Revenue


Review Threshold
-

Notes

Texas

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Utah

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Vermont

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

Virginia

More Info
Audit Required?
Yes

Audit Threshold

Conditional


Review Threshold
-

Notes

Organizations have the option to submit either Form 990 or audited financial statements with their annual Form 102 registration materials. If the organization files Form 990-N, it must submit a Certified Treasurer's Report (signed internal statements) from the previous tax year.

Washington

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes

West Virginia

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Gross Revenue


Review Threshold

$200,000 Gross Revenue


Notes

Wisconsin

More Info
Audit Required?
Yes

Audit Threshold

$500,000 Annual Contributions


Review Threshold

$300,000 Annual Contributions


Notes

Wyoming

More Info
Audit Required?
No

Audit Threshold
-

Review Threshold
-

Notes
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