State Law Nonprofit Audit Requirements

Does your state's law require an independent audit?

You may wonder if your state's laws require a charitable nonprofit to conduct an independent audit.

• Remember that some private foundations may require or expect a nonprofit grantee to conduct an independent audit;
• A few states have laws that require nonprofits that receive a certain level of state funding to submit independent audits to the state agency that provided the funding or to other state agencies. If your nonprofit receives any government funds --state or federal -- it is always a good idea to determine whether there is an accompanying audit requirement.
• Some state government contracts may require an audit; there is a federal requirement to conduct an independent audit if the nonprofit expends $750,000 or more in federal funds in a single year.
• Many states require charitable nonprofits to submit a copy of audited financial statements in conjunction with the process of registering the nonprofit so that it is able to lawfully engage in fundraising activities in that state (commonly known as "charitable registration").

State laws regulating independent audits are different in each state.

The obligation to file an independent audit report with the state government is generally just one requirement among many in connection with charitable solicitation registration. Thirty-nine states (plus the District of Columbia) require charitable nonprofits to register with the state in order to fundraise in that state. Remember that state laws often differ from one another. Consequently, the laws that require a charitable nonprofit to submit audited financial statements also vary state-by-state.

• The majority of states have laws requiring charitable nonprofits to conduct an independent audit under certain circumstances. The requirement for a nonprofit to submit audited financial statements to the state is most often triggered by either the total revenue received by the charitable nonprofit during the fiscal year, or the total contributions received. In some states the threshold of contributions or income received that triggers the independent audit requirement is relatively low; in other states the threshold is higher.
• The majority of states also require annual submission of audited financial statements in connection with renewal of charitable registration.
• These requirements for both initial and annual submission of audited financial statements may not apply to your nonprofit even if it is operating in a state where audit requirements exist since the requirements depend on specific circumstances, such as the amount of revenue contributed or the annual gross income of the charitable nonprofit - such details are specified in each state's law.

This Nonprofit Audit Guide© provides links to the state laws that address audits so that you can determine what your state requires. Remember that this chart only addresses state law requirements, and that your nonprofit may also be required to submit an independent audit report to private funders upon request, and will be subject to federal audit requirements if it expends more than $750,000 in federal funds in a single year. Some state government contracts may also include the requirement to conduct an independent audit.

Click on a state in the map below to find a link to the state law that governs audit requirements (if applicable) for charitable nonprofits in that state. In some cases we provide links to the language of state laws that require other reports be filed with the state, such as an "annual financial report." Remember that if your nonprofit is registering for charitable solicitation purposes in states other than its own, you should check the requirements for audits in those other states.

State Law Nonprofit Audit Requirements: 50-State Chart

(Updated as of August 2022)

Disclaimer: The National Council of Nonprofits is not engaged in the practice of law and this chart does not constitute legal advice. We encourage you to consult with legal, tax, or other professional advisors who can provide guidance for your charitable nonprofit’s individual circumstances.

Alabama

Audit Required: No state law requirement.
Statute and Description: Alabama Code § 13A-9-71

Alaska

Audit Required: Yes
Statute and Description: Alaska Admin. Code 2.45.010 requires nonprofits that receive state financial assistance and expend a cumulative total equal to or greater than $750,000 during the entity's fiscal year to submit an annual single audit. Nonprofits receiving money from the state of Alaska that don’t meet the requirements under 2 AAC 45.010 must submit an independent audit every two years. 7AAC 78.230. See Audit Guide and Compliance Supplement for State Single Audits.

Arizona

Audit Required: No state law requirement.
Statute and Description: Ariz. Rev. Stat. § 10-11622

Arkansas

Audit Required: Yes
Statute and Description: Ark. Code §4-28-403(b) | A charitable organization with annual contributions over $1,000,000 must file an audited financial statement prepared by an independent CPA. Charitable organizations with annual contributions of more than $500,000 but less than $1,000,000 must have its financial statements reviewed by an independent CPA. “Contributions” do not include bequests and testamentary distributions from a trust. Exemptions: Ark. Code Section 4:28:404.

California

Audit Required: Yes
Statute and Description: Cal. Gov. Code §12586(e)(1) | A charitable corporation with gross annual revenue of $2,000,000 or more AND that is already required to file reports with the Attorney General must have an audited financial statement prepared by an independent CPA, and available for inspection by the Attorney General and by members of the public within nine months of the close of the fiscal year to which the statements relate.

Colorado

Audit Required: No state law requirement.
Statute and Description: Colo. Rev. Stat. § 6-16-104

Connecticut

Audit Required: Yes
Statute and Description: Conn. Public Act 23-98, section 16. | Effective July 1, 2023, a charitable organization with gross revenue in excess of $1,000,000 (with certain revenue excluded) must file an audited financial statement prepared by an independent CPA. A charitable organization with gross revenue in excess of $500,000 (with certain revenue excluded) must file either an audited financial statement or a review prepared by an independent CPA. 

Delaware

Audit Required: No state law requirement
Statute and Description: Del. Code tit. 6 § 25-10

District of Columbia

Audit Required: No state law requirement.
Statute and Description: D.C. Code § 29

Florida

Audit Required: Yes
Statute and Description: FL Ch. 496.407 requires audits for charitable organizations as follows: For those receiving annual contributions of $1 million or more an independent audit is required; for those with annual contributions of at least $500,000 but less than $1 million, the financial statements shall be reviewed or audited by an independent CPA, and for those with less than $500,000 in annual contributions, a compilation, audit, or review of the financial statement is optional.

Georgia

Audit Required: Yes
Statute and Description: Ga. Code Ann. § 43-17-5(b)(4) | A charitable organization with contributions over $1 million during its preceding fiscal year must file an audited financial statement prepared by an independent CPA. A charitable organization with contributions less than $1 million but more than $500,000 in its preceding fiscal year must have its financial statement reviewed by an independent CPA. Exceptions: Ga. Code Ann. § 43-17-9

Hawai'i

Audit Required: Yes
Statute and Description: Haw. Rev. Stat. § 174: 467B-6.5(b) | A charitable organization required to obtain an audit report by another governmental authority or a third party must also file an audited financial statement prepared by an independent CPA, as part of their annual report.

Idaho

Audit Required: No state law requirement.
Statute and Description: Idaho Code Ann. § 30-3-136

Illinois

Audit Required: Yes
Statute and Description: 225 Ill. Comp. Stat. § 460/4 | A charitable organization with annual contributions more than $500,000 – or more with than $25,000, if their fundraising is not solely done by staff and volunteers – must file an audited financial statement prepared by an independent CPA. A charitable organization with contributions between $300,000 and $500,000 must file with the Attorney General a financial statement reviewed by an independent CPA.

Indiana

Audit Required: "Examination" (similar to an audit) required in certain circumstances for the use of public money.
Statute and Description: Indiana Code § 5-11-1-9 | Use of public money by certain entities, including nonprofits, requires an examination. A tentative waiver may be available for entities whose financial assistance disbursements are less than 50% of their total or nonprofits whose financial assistance disbursements are equal to or greater than 50% but less than $750,000. See Guidelines for Examination of Entities Receiving Financial Assistance from Governmental Sources.

Iowa

Audit Required: No state law requirement.
Statute and Description: Iowa Code § 504.1613

Kansas

Audit Required: Yes
Statute and Description: Kan. Stat. Ann. § 17-1763(c) | A charitable organization with annual contributions over $500,000 must file an audited financial statement prepared by an independent CPA.

Kentucky

Audit Required: No state law requirement.
Statute and Description: Ky. Rev. Stat. Ann. § 14A.6-010 | (See also Ky Rev. Stat. Title XXIII § 273.470 re: entities organized for charitable purposes related to disasters; requirement for filing financial reports when contributions exceed $25,000).

Louisiana

Audit Required: Yes, in certain circumstances, if receiving state funds.
Statute and Description: La. Rev. Stat. Ann. § 24:513(J)(1)(c) | A nonprofit that meets the definition of “quasi-public agency” will be required to conduct an annual independent audit if the nonprofit receives $500,000 or more in revenues in any one fiscal year; a financial review is required if annual revenue is $200,000 or more but less than $500,000; a compilation is required if annual revenue is $50,000 or more but less than $200,000. See Louisiana Governmental Audit Guide 2024 for more information.

Maine

Audit Required: Yes
Statute and Description: A charitable organization must be licensed in Maine. The license application does not require an audited financial statement. However, the license must be renewed annually. Me. Rev. Stat. Ann. tit. 9 § 5004(4)(C-D) A charitable organization is only required to file an audited financial statement if the organization already has one in existence at the time of renewal or applies for renewal after the expiration date. Otherwise, the organization may file a balance sheet in lieu of an audited financial statement. Me. Rev. Stat. Ann. tit. 9 § 5005-A(2). Exceptions: Me. Rev. Stat. Ann. Title 9 § 5005

Maryland

Audit Required: Yes
Statute and Description: MD Solicitations Act §6-402 (b)(7) | A charitable organization must file an audited financial statement prepared by an independent CPA if the gross income from charitable contributions is at least $750,000. For organizations with gross annual contributions between $300,000-$750,000 financial statements must be reviewed or audited by an independent CPA. 

Massachusetts

Audit Required: Yes
Statute and Description: Mass Gen. Laws ch. 12 § 8F | A public charity with annual gross support and revenue greater than $500,000 and less than or equal to $1,000,000, must submit audited or reviewed financial statements with its annual report.  Gross support and revenue do not include any gains or losses from the sale of a capital asset.  If the organization has annual gross support and revenue of more than $1,000,000, it must submit audited financial statements. See Office of the Attorney General: Audits and Reviews for Charitable Organizations for more information.

Michigan

Audit Required: Yes
Statute and Description: Mich. Comp. Laws § 400.273 Sec 3(2)(j) | A charitable organization with annual contributions of $500,000 or more must file an audited financial statement prepared by an independent CPA. A charitable organization with annual contributions less than $500,000 and at least $250,000 must file a financial statement that is either reviewed or audited by an independent CPA.

Minnesota

Audit Required: Yes
Statute and Description: Minn. Stat. § 11.309.53(3)(i) | A charitable organization with total annual revenue over $750,000 must file an audited financial statement prepared by an independent CPA.

Mississippi

Audit Required: Yes
Statute and Description: Miss. Code Ann. § 79-11-507 | As part of its annual registration requirement (unless exempted per Miss. Code Ann. Section 79-11-505(1)), a charitable organization with annual contributions in excess of $750,000 must file a financial statement audited by an independent CPA when all of the solicitations and fund-raising functions are conducted solely by volunteers. A charitable organization with annual contributions in excess of $250,000 but not more than $750,000 must file a financial statement reviewed by an independent CPA when all of the solicitations and fund-raising functions are conducted solely by volunteers. Charitable organizations with annual contributions not in excess of $250,000 must file a financial report with a sworn statement of accuracy from the president or other authorized officer. The Secretary of State may require an audited financial statement prepared by an independent CPA if the organization’s annual revenue is at least $25,000. NOTE: Every charitable organization that uses a professional solicitor for its fundraising functions must file an audited financial statement prepared by an independent CPA. See Mississippi's Charities Online for more details.

Missouri

Audit Required: No state law requirement.
Statute and Description: Mo. Rev. Stat. § 355.821.1

Montana

Audit Required: No state law requirement.
Statute and Description: Mont. Code Ann. § 35-2-904

Nebraska

Audit Required: No state law requirement.
Statute and Description: Neb. Rev. Stat.§ 21-1903

Nevada

Audit Required: No state law requirement.
Statute and Description: Nev. Rev. Stat. § 82.536

New Hampshire

Audit Required: Yes
Statute and Description: N.H. Rev. Stat. Ann. § 7:28(III-b) | A charitable organization with revenue, gains, and other support of $2 million or more must file an audited financial statement prepared in accordance with generally accepted accounting principles. Nonprofits receiving support of $500,000 or more must submit “the organization's latest financial statement prepared in accordance with generally accepted accounting principles.” Note: If compliance would constitute a financial burden, nonprofits may request an exemption, which, if granted, is valid for 3 years.

New Jersey

Audit Required: Yes
Statute and Description: NJ Rev Stat § 45:17A-24 | Organizations with gross revenue of $1 million or more in monetary donations, excluding certain in-kind contributions, must file financial statements audited by a CPA in accordance with generally accepted accounting principles, and any management letters prepared by the auditor.  Organizations receiving more than $25,000 but less than $1 million in monetary donations, must file an annual financial report certified by the organization’s president or other authorized officer. The Attorney General may request a financial statement audited by a CPA in accordance with generally accepted accounting principles, and any management letters prepared by the auditor.  Consult the NJ Center for Nonprofits for details.

New Mexico

Audit Required: Yes
Statute and Description: NM Stat § 57-22-6 | A charitable organization that has expenses in excess of $750,000 "shall be audited by an independent certified public accountant...in accordance with generally accepted accounting principles."

New York

Audit Required: Yes
Statute and Description: N.Y. EXC. Law 7A § 172-b | A charitable organization with gross annual revenue over $1,000,000 must file an audited financial statement prepared by an independent CPA. A charitable organization with gross annual revenue less than $250,000 must file a financial statement but it does not need to be one reviewed by an independent CPA. Organizations with gross annual revenue of between $250,000-$1,000,000 must file a financial review prepared by an independent CPA, but the Attorney General may require an audit report.

North Carolina

Audit Required: Yes, in certain circumstances, if receiving state funds.
Statute and Description: 09 NCAC 03M .02025 | Any nonprofit that receives, holds, uses, or expends more than $1 million in state grants funds in a year is required to have a Yellow Book Audit completed each year. The NC State Auditor has the authority to audit any nonprofit receiving $1,000 or more in state funding in any fiscal year. See : NCGS Section 159-40(b) and NCGS Section 147-64.6. 

North Dakota

Audit Required: No state law requirement.
Statute and Description: N.D. Cent. Code § 50-22-04

Ohio

Audit Required: No state law requirement.
Statute and Description: Ohio Rev. Code § 1716.04

Oklahoma

Audit Required: No state law requirement.
Statute and Description: Okla. Stat. tit. 18, § 18-552.3

Oregon

Audit Required: No state law requirement.
Statute and Description: Or. Rev. Stat. § 65.787 | No state law requirement, but if an organization’s financials were audited, they must be attached to the annual registration form.  See Charitable Activities Annual Report Form.

Pennsylvania

Audit Required: Yes
Statute and Description: 10 Pa. Cons. Stat. §162.5 (f) | A charitable organization with annual contributions of $750,000 or more must file an audited financial statement prepared by an independent CPA. A charitable organization with annual contributions less than $750,000 and at least $250,000 must file a financial statement that is reviewed or audited by an independent CPA. A charitable organization with annual contributions less than $250,000 and at least $100,000 must have a compilation, review, or audit of its financial statements prepared by an independent CPA. Organizations receiving more than $25,000 but less than $100,000 may submit compiled, reviewed, or audited financial statements prepared by an independent CPA or licensed public accountant. See Information for Charitable Organizations.

Rhode Island

Audit Required: Yes
Statute and Description: R.I. Gen. Laws § 5-53.1-4 | All charitable organization are required to submit audited financial statements, but those with gross annual income of $500,000 or less may meet the financial filing requirements by providing either an IRS Form 990, or financial statements for the immediately preceding fiscal year compiled by an independent public or certified accountant. The Director of the Department of Business Regulation may require audited financials from organizations with gross annual income of $500,000 or less when the Director has reasonable cause to believe a violation has occurred.

South Carolina

Audit Required: No state law requirement.
Statute and Description: S.C. Code Ann. § 33-56-30

South Dakota

Audit Required: No state law requirement.
Statute and Description: S.D. Codified Laws § 47-24-6 and 59-11-24

Tennessee

Audit Required: Yes
Statute and Description: Tenn. Code Ann. § 48-101-506(b)(2) amended under Public Charter 615 | A charitable organization with gross annual revenue over $1,000,000 (excluding grants from government agencies and private foundations) must file an audited financial statement prepared by an independent CPA and all forms required by the IRS.

Texas

Audit Required: No state law requirement.
Statute and Description: Tex. Bus. & Org. Code § 22.352 | A charitable organization must maintain current and accurate financial records in accordance with GAAP. Based on these records, the board must prepare or approve a financial report that conforms to AICPA standards. The financial report must be made available to the public (§ 22.353(b)). Exemptions (§ 22.355).

Utah

Audit Required: No state law requirement.
Statute and Description: Utah Code § 16-6a-1607 and Utah Code § 13-22-15 | Beginning January 1, 2025, charitable organizations that are nonprofit corporations shall file their latest IRS Form 990, 990-EZ, 990-N, or 990-PF; Form 990-T is not required to be filed.

Vermont

Audit Required: No state law requirement.
Statute and Description: Vt. Stat. Ann. tit. 11B, § 16.22

Virginia

Audit Required: Yes
Statute and Description: Va. Code Ann. § 58.1-609.11(C)(4) | A nonprofit organization with gross annual revenue of $1.5 million or more may be required to provide an audited financial statement prepared by an independent CPA, in lieu of a financial review. A nonprofit entity with gross annual revenue of at least $750,000 must provide a financial review by an independent CPA.

Washington

Audit Required: Yes
Statute and Description: Rev. Code Wash. § 19-09-541 | A charitable organization with an annual gross revenue exceeding $3 million over the three preceding fiscal years must file an audited financial statement prepared by an independent CPA. Wash. Admin. Code § 434-120-107 provides a narrow exemption from audit requirements for certain organizations above the $3 million threshold.  NOTE: Disclosure Requirement: A charitable organization with annual gross revenue of not more than $3 million and more than $1 million averaged over the three preceding fiscal years must disclose to the public either an audited financial statement prepared by an independent CPA or a federal financial reporting form (e.g., IRS Form 990) prepared by an independent CPA.

West Virginia

Audit Required: Yes
Statute and Description: W. Va. Code § 29-19-5(a)(6)(A)-(B) | Charitable organizations with annual contributions over $500,000 must file an audited financial statement prepared by an independent CPA. Charitable organizations with annual contributions in excess of $200,000 but not more than $500,000 must file a financial statement reviewed by an independent CPA.

Wisconsin

Audit Required: Yes
Statute and Description: Wis. Stat. § 202.12| A charitable organization with annual contributions over $1 million must file an audited financial statement and include the opinion of an independent CPA. A charitable organization with annual contributions of not more than $1 million and over $500,000 must file a financial statement reviewed by an independent CPA. 

Wyoming

Audit Required: No state law requirement.
Statute and Description: Wyo. Stat. § 17-19-1630