What this is: New York’s Executive Law requires most organizations that solicit charitable contributions in New York to register with the Attorney General’s Charities Bureau and submit audited financial statements. The audit must be submitted to the Charities Bureau with New York’s Annual Filing for Charitable Organizations (Form CHAR500). Effective 07/01/2021, the audit threshold in New York is increasing to $1,000,000.
What this means: Charities and other organizations required to register and whose revenues exceed thresholds established by the Nonprofit Revitalization Act of 2013 (“NPRA”) are required to submit audited financial statements in conformity with generally accepted accounting principles, including compliance with all pronouncements of the financial accounting standards board and the American Institute of Certified Public Accountants.
Over a period of seven years, from 07/01/2014 to 07/01/2021, the NPRA raised the revenue thresholds that trigger the audit requirement as follows:
Annual reports with an original or extended due date between | Audited financial statements by an independent CPA required if revenue exceeds | CPA review if between |
|---|---|---|
07/01/2014 to 06/30/2017 | $500,000 | $250,000 and $500,000 |
07/01/2017 to 06/30/2021 | $750,000 | $250,000 and $750,000 |
On or after 07/01/2021 | $1,000,000 | $250,000 and $1,000,000 |
Effective 07/01/2021, the audit threshold in New York is increasing to $1,000,000. For additional information see Guidance on Audit Thresholds and Fees.
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This content is provided for informational purposes only and should not be considered, or relied upon, as legal advice.
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