Arkansas and Connecticut New Audit Threshold Requirements

Most states require charitable organizations to submit audited, reviewed or compiled financial statements annually as part of their charitable registration requirements. Financial statements are required based on state-specific revenue or gross contribution thresholds, whether audited, reviewed, or compiled. These thresholds vary from state to state. The audit threshold for charitable organizations fundraising in Arkansas and Connecticut increased in the past year.

New Audit Requirements

In Arkansas, effective 8/1/2023, the audit threshold increased from $500,000 gross revenue to $1,000,000 in contributions/grants, with a review threshold set at $500,000 - $1,000,000 in contributions/grants detailed in Act 338.

On the other hand, Connecticut raised its audit threshold from $500,000 gross receipts to $1,000,000 gross revenue, effective 7/1/2023. The review threshold for Connecticut is now set at $500,000 - $1,000,000 gross revenue. These changes are outlined in Public Act 23-98.

Ongoing Maintenance

State laws mandating independent financial audits for charitable organizations differ. Nonprofits must keep track of audit threshold revisions in states where they fundraise. Neglecting to submit accurate financial statements may lead to delayed filings, fines, penalties, or even the revocation of solicitation privileges in the state.

For complete details on the financial statement requirements related to charitable registration filings, check out our Audit Requirement Thresholds page.

Labyrinth, Inc. has filed tens of thousands of state registrations and handles every aspect of the registration process. Contact us today to learn how our team of specialists can help your organization fundraise with confidence.

Unlock the secrets to maintaining your nonprofit's compliance with our latest blog post on audit threshold revisions for charitable organizations. Dive into essential financial statement requirements and avoid potential penalties with expert insights from Labyrinth, Inc. Explore how our specialists can streamline your state registrations and empower your fundraising efforts—read more now.