Is An Audit Required For My Non-Profit Organization?
Updated on March 31, 2021
You’ve started a non-profit, or perhaps your non-profit is growing. First, congratulations on your success. Second, that growth comes with some new responsibilities. Maybe it's a growing group of volunteers to manage or new missions to take on. Potentially one of those responsibilities may be an audit. Whether an audit is required is based on state law. Below is a list of local non-profit audit requirements.
Have questions about whether an audit is required for your organization and what the next steps are? Contact us to schedule a meeting with one of the experts from our audit team.
District of Columbia
Audit Required: No state law requirement.
Statute and Description: D.C. Code § 29
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.
Virginia
Audit Required: Yes
Statute and Description: Va. Code Ann. § 58.1-609.11(C)(4) | A non-profit organization with gross annual revenue of $1 million or more may be required to provide an audited financial statement prepared by an independent CPA. A non-profit entity with gross annual revenue less than $1 million and at least $750,000 must provide a financial review 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 $300,000 but not more than $500,000 must file a financial statement reviewed by an independent CPA. (Contributions do not include grants from government agencies or private foundations.)