Maryland Nonprofit Audit Requirements: The $750,000 Rule
Under the Maryland Solicitations Act (Md. Code Ann., Business Regulation § 6-402), a charity registered with the Maryland Secretary of State must file an independent CPA audit when gross income from charitable contributions is $750,000 or more, and a CPA review when contributions are between $300,000 and $750,000. The thresholds are measured by charitable contributions — not total revenue. A separate federal Single Audit applies at $1,000,000 in federal expenditures (2 CFR 200.501).
What Are Maryland's Audit and Review Thresholds?
The Maryland Solicitations Act sets three tiers of financial reporting for registered charities — measured by gross income from charitable contributions.
Under $300,000 in Contributions
990 FilingNo CPA audit or review required by the Solicitations Act. The charity files its annual registration with financial reporting (Form 990 / Form COR-92). The Secretary of State retains discretionary authority to require an audit or review in certain cases.
$300,000 – $750,000
Review RequiredFinancial statements must be reviewed or audited by an independent CPA and submitted with the annual registration. A review provides limited assurance at roughly 40–60% of audit cost — many charities in this tier choose it.
$750,000 or More
Audit RequiredAn audit by an independent CPA is mandatory. The audited financial statements accompany the annual registration renewal — a review does not satisfy the statute at this tier.
Source: Md. Code Ann., Business Regulation § 6-402; Maryland Secretary of State, Charitable Organizations Division registration instructions.
How Does the Maryland Rule Interact With the Federal Single Audit?
Two separate mandates, measured on two different bases — many Maryland nonprofits are subject to both.
Maryland Solicitations Act
Trigger: $750,000+ in gross charitable contributions (audit) or $300,000–$750,000 (review). Filed with the Maryland Secretary of State alongside the annual charitable registration renewal. Measured on contributions received, regardless of how the money is spent.
Federal Single Audit — 2 CFR 200.501
Trigger: $1,000,000+ in federal award expenditures in a fiscal year beginning on or after October 1, 2024 (earlier fiscal years: $750,000). Filed with the Federal Audit Clearinghouse. Measured on federal money spent — including pass-through funding from Maryland state and county agencies.
One Engagement Can Satisfy Both
A nonprofit in Bethesda or Baltimore with $900,000 in contributions and $1.2 million in federal expenditures needs both — and a properly scoped Single Audit engagement produces audited GAAP financial statements that also satisfy the Maryland Secretary of State. Coordinating the two up front avoids paying for duplicate work.
Typical Nonprofit Audit Costs — Maryland
Typical ranges for Maryland nonprofit engagements (2026). Actual fees depend on revenue, federal program count, and record readiness — every engagement is individually scoped with transparent pricing.
| Feature | Engagement | Typical Range | Typical Timeline |
|---|---|---|---|
| Review engagement ($300K–$750K contributions tier) | $5,000–$9,000 | 4–6 weeks | |
| Financial statement audit ($750K+ contributions) | $8,000–$18,000 | 6–10 weeks | |
| Single Audit (1–2 major programs) | $12,000–$20,000 | 8–10 weeks | |
| Combined MD audit + Single Audit | $14,000–$28,000+ | 8–12 weeks |
Why Do Maryland Nonprofits Choose a Virtual Audit Firm?
From Bethesda and Silver Spring to Baltimore — the audit comes to you.
Renewal-Deadline Planning
We plan every Maryland engagement backwards from your charitable registration renewal date, so the audited or reviewed statements are issued before the Secretary of State needs them — no lapsed solicitation authority.
Contribution Classification Expertise
The $300,000 and $750,000 tiers turn on what counts as a charitable contribution versus program or contract revenue. We evaluate your revenue streams against the statute and your Form 990 presentation before concluding which tier applies.
Single Audit Coordination
Nonprofits along the Bethesda–Silver Spring federal corridor and in Baltimore often cross the $1,000,000 federal expenditure line. One coordinated engagement satisfies both Maryland and 2 CFR 200 Subpart F.
100% Virtual, Fully Licensed
Secure portals, direct confirmations, and video fieldwork — no auditors in your office. Our CPAs are licensed in multiple states, including Washington DC, and audit under GAAS and Government Auditing Standards (Yellow Book).
Related Nonprofit Audit Resources
Nonprofit Audit Services
Our full nonprofit audit practice for DC, VA, and MD organizations.
Single Audit Threshold Guide
The $1M threshold explained — who needs a Single Audit and when.
Single Audit Services
Uniform Guidance audits under 2 CFR 200 Subpart F.
Yellow Book Audits
GAGAS audits for government-funded organizations.
Maryland Nonprofit Audit FAQs
Common questions from Maryland executive directors, CFOs, and board treasurers.
Not Sure Which Maryland Tier Your Organization Falls Into?
Send us your latest Form 990. We'll tell you whether Maryland requires an audit or a review this year, whether the federal Single Audit also applies, and exactly what it will take — with a clear timeline and transparent pricing.
Serving nonprofits across Maryland — Bethesda, Silver Spring, Rockville, Baltimore — 100% virtually. Typical turnaround 6–12 weeks.