Wisconsin Charitable Solicitation Audit Threshold Update

Charitable organizations must submit audited financial statements annually for charitable registration in many states. Small organizations may be exempt from the audit requirement based on minimum revenue or gross contribution thresholds, which vary by state. Organizations soliciting funds in multiple states may need to submit multiple copies of their audited financials.

On March 21, 2024, the Wisconsin State Legislature enacted Assembly Bill 912, now known as 2023 Wisconsin Act 151 which increases the audit threshold from $500,000 to $1,000,000 in annual contributions. Charities with annual contributions of at least $500,000 but less than $1,000,000 may now submit reviewed financials rather than audited ones. 

Nonprofits must keep track of changes to audit thresholds in states where they are raising funds. Failure to provide accurate financial statements may result in delayed filings, fines, and penalties, and even the loss of the right to solicit in that state. 

Labyrinth has helped thousands of organizations navigate fundraising compliance requirements for over 30 years. As your trusted nonprofit compliance experts, we are here to make maintaining regulatory requirements easy. Contact us today to learn more about how we can help.