Nonprofit audit requirements by state: when does my state require an audit or review?

Most states require charities to register before they ask residents for donations. Many of those states tie an annual financial report to your size. Above one amount, you file statements audited by an independent CPA. In a lower band, a CPA review is enough. Below that, an officer-certified report or Form 990 is often accepted.

Three things change from state to state:

• The measure. Some states use total revenue. Others use only contributions. California and Connecticut exclude certain government grants.
• The dollar amount. Audit levels in the table run from $500,000 to $2,000,000.
• Whether a review is allowed. Some states have no review tier at all.

Registration is based on where you solicit, not where you are incorporated. A DC or Virginia nonprofit that fundraises in Maryland or New York must follow those states' rules too.

Maryland. Business Regulation §6-402(b)(7) was amended by 2026 Laws of Maryland Chapter 394 (SB 354) and Chapter 393 (HB 483), effective July 1, 2026. An audit is now required when gross income from charitable contributions in the most recent fiscal year is at least $1,000,000. A review is required from $400,000 up to $1,000,000. The Secretary of State may still require an audit or review below $1,000,000. See Maryland nonprofit audits.

Virginia. Va. Code §57-49(A)(6) has no audit threshold. A registering charity may file financial statements with an independent accountant's opinion, a certified fundraising statement, or a copy of IRS Form 990. See Virginia nonprofit audits.

District of Columbia. DC's charitable solicitation law (D.C. Code §44-1703) requires a license but sets no CPA audit or review threshold. See DC nonprofit audits.

State thresholds are not the only audit trigger. Under 2 CFR 200.501, a nonprofit that spends $1,000,000 or more in federal awards in a fiscal year needs a Single Audit. The $1,000,000 level applies to fiscal years beginning on or after October 1, 2024. The reporting package goes to the Federal Audit Clearinghouse by the earlier of 30 days after you receive the report or nine months after year end (2 CFR 200.512).

A Single Audit includes a financial statement audit, so it can usually be filed with the states too. Check your status with our Single Audit checker or read about the Single Audit.

Funders, lenders and your own bylaws can also require an audit, even when no state or federal rule does.

Best for: nonprofits registered in more than one state, and organizations that just crossed a state or federal threshold.

1. Free initial consultation. Tell us where you are registered, your fiscal year end and your revenue mix.
2. Fees quoted upfront, in writing. Transparent, fair fees in an engagement letter that names the report type.
3. State mapping. We match your numbers to each state's measure and confirm whether you need an audit or a review.
4. One request list. A single list covers the audit or review, and the Single Audit if you need one.
5. Fieldwork, done remotely. We perform the procedures the standards require.
6. Report. You receive one report you can file with each state.

Never been audited? Read what to expect in a first audit.