State-by-State Audit & Review Thresholds for Nonprofits

Q: What are the audit and review thresholds for nonprofits by state?

Audit and review thresholds for nonprofits vary by state and are typically tied to annual revenue, contributions, or fundraising levels as part of charity registration and compliance rules. Many states require an audit once a nonprofit exceeds a specified threshold, while some allow a review at mid-tier levels and may require a compilation or no CPA report at lower levels. Because requirements differ widely—and can depend on where you solicit donations, where you’re registered, and what filings you submit—nonprofits should confirm their specific state rules and meet the minimum reporting level required to stay compliant.

Important Notice: This table is for general informational purposes only. Thresholds change frequently. Always confirm with your state charity regulator, Attorney General's office, or Department of Revenue before relying on these figures. This is not legal or compliance advice.

State-by-State Audit / Review Requirements for Nonprofits

State / Territory	Audit Requirement Threshold	Review Threshold	Notes
Alabama	None	None	May be required for state grants.
Alaska	> $750,000 in contributions	$500k–$750k	Applies to charitable organizations.
Arizona	None	None	Some grantors may require.
Arkansas	> $500,000 in contributions	$250k–$500k	Annual registration required.
California	> $2 million total revenue	Review allowed below	Applies to nonprofits registered with AG.
Colorado	> $750,000 in contributions	$500k–$750k	Annual Charitable Solicitation Act.
Connecticut	> $500,000 revenue	$250k–$500k	Excludes government grants.
Delaware	None	None	Not required unless receiving state funds.
District of Columbia (D.C.)	> $2 million contributions	$500k–$2M	Review required above $500k.
Florida	> $1 million contributions	None	Review not mandated.
Georgia	> $1 million contributions	None	Limited state oversight.
Hawaii	> $500,000 contributions	$250k–$500k	AG-supervised registration.
Idaho	None	None	Thresholds may apply to certain grants.
Illinois	> $500,000 contributions	$300k–$500k	AG charity bureau required filers.
Indiana	None	None	Only required for state contracts/grants.
Iowa	None	None	Often required by private funders.
Kansas	None	None	No statutory mandate.
Kentucky	> $500,000 contributions	None	Review not specified.
Louisiana	> $500,000 contributions	None	Applies to charitable orgs.
Maine	> $500,000 contributions	None	Annual filing required.
Maryland	> $500,000 contributions	$300k–$500k	Applies to charitable orgs.
Massachusetts	> $500,000 contributions	$200k–$500k	One of the stricter states.
Michigan	> $500,000 contributions	None	Annual solicitation registration.
Minnesota	> $750,000 contributions	None	One of the higher thresholds.
Mississippi	> $500,000 contributions	None	State charity bureau oversight.
Missouri	None	None	Local entities may require.
Montana	None	None	No statewide audit mandate.
Nebraska	None	None	Requirements may apply to state-funded orgs.
Nevada	> $750,000 contributions	Review for $250k–$750k	State charity registration.
New Hampshire	> $1 million contributions	$500k–$1M	Fundraising disclosure required.
New Jersey	> $1 million contributions	$500k–$1M	One of the more regulated states.
New Mexico	None	None	May be required for certain filings.
New York	> $1 million revenue	Review $250k–$1M	Highly regulated under CHAR500 filing.
North Carolina	> $1 million contributions	$500k–$1M	Varies for religious entities.
North Dakota	> $750,000 contributions	Review $500k–$750k	Annual reporting required.
Ohio	None	None	May be required for grant compliance.
Oklahoma	None	None	Only applies to certain soliciting orgs.
Oregon	> $1 million in contributions	None	Strict governance expectations.
Pennsylvania	> $750,000 contributions	Review $250k–$750k	Clear tiered structure by revenue.
Rhode Island	> $1 million contributions	Review $500k–$1M	State charity filing required.
South Carolina	> $500,000 contributions	Review $350k–$500k	Annual registration.
South Dakota	None	None	No specific statutes.
Tennessee	> $500,000 contributions	Review $300k–$500k	Applies to soliciting charities.
Texas	None	None	Not required unless state-funded.
Utah	> $1 million contributions	Review $500k–$1M	Annual charity filing.
Vermont	None	None	Minimal regulatory filings.
Virginia	> $1 million contributions	Review $750k–$1M	Applies to charitable orgs.
Washington	> $3 million revenue	Review allowed below	One of the highest thresholds.
West Virginia	> $500,000 contributions	Review $200k–$500k	Tiered filing system.
Wisconsin	> $500,000 contributions	None	One of the more common thresholds.
Wyoming	None	None	No statutory audit requirement.

Notes for Executive Directors & Boards

• If you solicit funds in multiple states, thresholds apply per state, not just your home state.

• Many states look at contributions, not total revenue.

• Government or grant funding may impose stricter rules regardless of state thresholds.

• If close to a threshold, plan 1–2 years ahead because it affects budget, audit readiness, and governance.

How Jedidiah CPA Can Help

We guide nonprofits through:

• Audit preparation and readiness

• Review and compilation support

• Strengthening internal controls

• State compliance filings

• Grant reporting frameworks

Disclaimer

The table above is not legal, tax, or compliance advice. Nonprofit financial reporting rules change frequently. Always consult:

• The state Attorney General's charity bureau

• The Department of Revenue

• State nonprofit registration guides

• A qualified CPA familiar with your state's nonprofit laws

Whenever an engagement requires independence under professional standards, Jedidiah CPA cannot perform bookkeeping, financial statement preparation, or management functions for the same client during the period of that engagement.

FAQs

Do all states require nonprofits to have an audit?

No. Some states have audit thresholds, some allow reviews for certain ranges, and others may not require a CPA report unless specific triggers apply.

What is the most common audit threshold range for nonprofits?

Many states set audit thresholds somewhere between $250,000 and $1 million in annual revenue or contributions, but the exact number and definition vary by state.

Can a review satisfy state compliance instead of an audit?

In some states, yes—reviews may be accepted below the audit threshold or for mid-tier reporting levels. Requirements depend on the state’s charity regulations.

What other triggers can require an audit besides revenue?

Grant requirements, lender covenants, donor restrictions, board policy, and federal Single Audit rules (based on federal spending) can also trigger audit requirements.

How should nonprofits stay compliant across multiple states?

Track where you solicit donations, keep clean financial records, and confirm the reporting requirement for each state where you are registered or required to file—then align your CPA reporting level accordingly.

Other FAQs

1. Do all states require nonprofit audits? No. Requirements vary significantly.

2. What is the most common audit threshold? Around $500,000–$750,000 in annual revenue or contributions.

3. Do states allow reviewed financials? Many states accept reviews for mid-tier thresholds.

4. Do states require compilations? Some do for lower revenue levels.

5. What if the nonprofit receives federal funds? A Single Audit is required if federal spending exceeds $750,000.