TLDR
Nonprofit audit thresholds vary by state from zero (no requirement) to $2 million in California — and the threshold that applies is determined by where you solicit donations, not just where you are incorporated, which means multi-state fundraising creates multi-state audit obligations most nonprofits discover late. The federal single audit threshold of $1,000,000 in federal expenditures (raised from $750,000 for fiscal years ending September 30, 2025 or later) operates independently of all state thresholds.
Forty-one states plus the District of Columbia require charitable solicitation registration, and the majority of those states set financial reporting thresholds — points above which an audit, review, or compilation is required as a condition of maintaining registration. The compliance complexity for multi-state fundraising organizations is significant: each state’s threshold, filing deadline, and accepted financial statement type differs, and the obligation follows your solicitation activity, not your incorporation address.
The registrations that create audit obligations do not coordinate with each other or with federal single audit requirements. Managing them requires knowing the rules for each state where you actively fundraise.
Why State Audit Requirements Differ from Federal Single Audit Rules
The federal single audit framework is uniform nationwide: $1,000,000 in federal expenditures triggers a single audit (for fiscal years ending September 30, 2025 or later; the previous threshold was $750,000) under 2 CFR Part 200, regardless of the organization’s state of incorporation or operation. The resulting audit report is submitted to the Federal Audit Clearinghouse and is publicly accessible.
State audit requirements exist within an entirely different regulatory framework — each state’s attorney general or secretary of state administers charitable solicitation registration under state law. These state requirements were established independently, at different times, with different thresholds and different accepted financial statement types. They do not coordinate with the federal single audit, they do not coordinate with each other, and they are revised on irregular schedules.
The practical implication: a $1.2 million nonprofit incorporated in Texas with no federal grants, but with active fundraising in California and New York, may face no Texas audit requirement, a California audit requirement (revenue over $2M would be needed, so in this case California’s audit requirement would not apply at $1.2M), but would face a New York audit requirement (above $750K). The correct compliance analysis begins with identifying every state where the organization actively solicits donations.
Revenue Thresholds by State: 15 Key States for 2026
The thresholds below reflect the current requirements as of early 2026. State legislatures and attorneys general revise these thresholds periodically. Always verify current requirements directly with the relevant state agency or through the National Association of State Charity Officials (NASCO) Unified Registration Statement resources before relying on any published summary.
California — Audit required when gross revenue exceeds $2,000,000. Review required when gross revenue exceeds $500,000. Compiled statements accepted below $500,000. Administered by the California Department of Justice, Registry of Charitable Trusts (Form RRF-1).
New York — Audit required when gross revenue exceeds $750,000. Review required when gross revenue exceeds $250,000. Compiled statements accepted between $100,000 and $250,000. Administered by the New York Attorney General’s Charities Bureau (Form CHAR500).
Florida — Audit required when gross revenue exceeds $1,000,000. Review required when gross revenue exceeds $500,000. No financial statement required below $500,000 (though registration is required above $25,000 in contributions). Administered by the Florida Department of Agriculture and Consumer Services.
Illinois — Audit required when gross revenue exceeds $300,000. Review required when gross revenue exceeds $25,000. Administered by the Illinois Attorney General’s Charitable Trust Bureau (Form AG990-IL).
Pennsylvania — Audit required when gross revenue exceeds $300,000. Review required when gross revenue exceeds $100,000. Administered by the Pennsylvania Bureau of Charitable Organizations (Form BCO-10).
Ohio — Audit required when gross revenue exceeds $500,000. Review required when gross revenue exceeds $200,000. Administered by the Ohio Attorney General’s Charitable Law Section (Form CFR).
Michigan — Audit required when gross revenue exceeds $500,000. Review required when gross revenue exceeds $250,000. Administered by the Michigan Attorney General’s Charitable Trust Section.
Georgia — Audit required when gross revenue exceeds $1,000,000. Review required when gross revenue exceeds $500,000. Administered by the Georgia Secretary of State (Form C-200).
North Carolina — Audit required when gross revenue exceeds $500,000. Review required when gross revenue exceeds $200,000. Administered by the North Carolina Secretary of State.
Virginia — Audit required when gross revenue exceeds $1,000,000. Review required when gross revenue exceeds $500,000. Administered by the Virginia Department of Agriculture and Consumer Services (Form 102).
Washington — Review required when gross revenue exceeds $1,000,000 but is under $3,000,000. Audit required above $3,000,000. Administered by the Washington Secretary of State’s Charities Program.
Massachusetts — Audit required when gross revenue exceeds $500,000. Review accepted between $200,000 and $500,000. Administered by the Massachusetts Attorney General’s Non-Profit Organizations/Public Charities Division.
New Jersey — Audit required when gross revenue exceeds $500,000. Review accepted between $25,000 and $500,000. Administered by the New Jersey Division of Consumer Affairs, Charities Registration Section (Form CRI-300R).
Colorado — Audit required when gross revenue exceeds $750,000. Review accepted between $300,000 and $750,000. Administered by the Colorado Secretary of State’s Charitable Solicitations Unit.
Texas — No state audit or review requirement. Texas requires charitable solicitation registration only for organizations meeting certain criteria (primarily those using paid solicitors). Organizations without paid solicitors or with gross contributions under $25,000 from Texas donors generally do not need to register. This does not exempt Texas-incorporated organizations from the audit requirements of other states where they fundraise.
What “Audit” vs. “Review” vs. “Compilation” Means in State Context
Many states use these terms with the same technical meaning as generally accepted auditing standards, but state filing requirements may accept lower levels of assurance at lower revenue thresholds.
An audit provides the highest level of assurance and is the most expensive. The auditor expresses an opinion on whether the financial statements are presented fairly in conformity with GAAP. An audit includes internal controls testing, substantive transaction testing, and third-party confirmations.
A review provides limited assurance — the accountant’s conclusion that nothing came to their attention indicating the statements are not presented fairly. A review does not include internal controls testing or substantive testing. A review is significantly less expensive than an audit (typically 40–60% of audit cost) and is acceptable in many states at mid-revenue ranges.
A compilation provides no assurance. The accountant prepares statements from client-provided information. Several states accept compiled statements at their lowest revenue thresholds as an acceptable alternative to registration of financial documents.
When a funder requires an “audited financial statement,” they mean an audit — a compilation or review does not satisfy this requirement even if your state accepts compiled statements.
How to Find Your State’s Current Threshold
The authoritative source is the state charitable solicitation registration office, which is typically housed in the attorney general’s office, secretary of state’s office, or department of consumer affairs. Most publish guidance documents that specify current revenue thresholds, required financial statement types, and filing deadlines.
The National Association of State Charity Officials (NASCO) publishes a summary of state registration requirements and provides resources for the Unified Registration Statement (URS), which is accepted in most states in lieu of state-specific registration forms. The URS includes a section for financial information that coordinates with state audit threshold requirements.
State thresholds change without widely publicized notice. A threshold that was accurate in 2023 may not be accurate in 2026. Before each annual registration renewal, confirm the current threshold directly with the state agency or through NASCO resources.
States with No Audit Requirement
A small number of states have no charitable solicitation registration requirement and therefore no associated audit requirement. As of 2026, Montana, Idaho, South Dakota, and Wyoming have no charitable solicitation registration statute. Texas, as noted above, has a registration requirement but no associated audit threshold. Nevada requires registration but no financial statement filing.
Absence of a state audit requirement does not affect the federal single audit requirement, any funder-imposed audit requirements in grant agreements, or any state registration requirements in other states where the organization fundraises.
The Charitable Solicitation Registration Connection
Audit requirements in most states attach to charitable solicitation registration — the license to solicit donations in that state. An organization that does not register in California despite actively fundraising from California residents is violating California charitable solicitation law, not just missing an audit requirement. The penalties vary by state and include fines, required registration, and in some cases injunctive relief.
“Active fundraising” in a state generally means any systematic outreach to residents of that state: direct mail, email campaigns to state residents, website donation pages accessible to state residents (most states interpret a national website as soliciting in all states), social media campaigns, or in-person events. The threshold for registration varies — some states set a minimum contributions level ($25,000 in Florida, $5,000 in Washington) — but many states require registration at any level of solicitation.
How to Manage Multiple State Requirements When You Fundraise Nationally
Organizations that fundraise nationally face compliance obligations in up to 41 states. The practical management approach involves three elements.
First, a registration calendar that tracks each state’s registration renewal date, current fee, current revenue threshold, and required financial statement type. This calendar should be maintained as a compliance document, not reconstructed each year from memory.
Second, a single audit engagement that is scoped to satisfy the most demanding applicable requirement. If your state requirements include both California (which requires audited statements above $2M) and New York (which requires audited statements above $750K), and your revenue is $1M, the New York requirement drives your audit scope. A single audit engagement satisfies both.
Third, a process for evaluating whether the federal single audit requirement has been triggered. If you receive federal grants that individually may not seem large, the aggregate test — all federal expenditures in the fiscal year from all sources — may push you over $1,000,000 without (the previous threshold was $750,000) your realizing it. Tracking federal expenditure totals against the single audit threshold is a finance team responsibility that should be on the monthly reporting dashboard.
For a guide to preparing for your annual audit, see Nonprofit Audit Readiness. For a catalog of the most common findings in nonprofit single audits and how to prevent them, see Common Single Audit Findings. For a glossary definition of single audit requirements, see Single Audit.
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- Charitable solicitation registration
- The state registration requirement for nonprofits that solicit donations from residents of a state. Currently 41 states plus the District of Columbia require registration. Registration thresholds and associated financial reporting requirements (compilation, review, or audit) vary by state. The National Association of State Charity Officials (NASCO) maintains current state requirements.
DEFINITION
- Single audit
- The compliance audit required under 2 CFR Part 200 when a nonprofit expends $1,000,000 or more in federal awards (raised from $750,000 for fiscal years ending September 30, 2025 or later) in a fiscal year. Includes a GAAP financial statement audit and a separate compliance examination of major federal award programs. Submitted to the Federal Audit Clearinghouse and publicly accessible.
DEFINITION
- Compilation
- The lowest level of financial statement preparation service. An accountant compiles financial statements from client-provided information without verifying or testing the data. Provides no assurance that the statements are accurate. Some states accept compiled statements at lower revenue thresholds before requiring a review or audit.
DEFINITION
Q&A
Do I need a nonprofit audit in my state?
The answer depends on your revenue level, where you solicit donations, and whether you receive federal awards. Check your state's charitable solicitation registration requirements first — most are administered by the state attorney general's office or secretary of state. Also check each state where you actively fundraise. If you receive $1,000,000 or more in federal expenditures (raised from $750,000 for fiscal years ending September 30, 2025 or later) in a fiscal year, a federal single audit is required regardless of state requirements. If any grant agreement requires audited financials as a condition, that requirement also applies regardless of state or federal thresholds.
Frequently asked