Audit

Nonprofit organizations are not automatically required to obtain audited or reviewed financial statements. Requirements depend on revenue levels, state regulations, and the activities your organization conducts—especially fundraising and tax exemption status.  Below is what nonprofits operating in Virginia (and across multiple states) need to know.  Virginia Audit vs. Review Requirements for Nonprofits  Virginia does not mandate audits or reviews for all nonprofits. However, financial reporting requirements apply once certain revenue thresholds are met, particularly in connection with state tax exemptions.  Virginia Revenue Thresholds  $0 – under $750,000 in annual gross revenue No state-mandated audit or review is required (Note: funders or grantors may still require one.)  $750,000 or more

Virginia: What Nonprofits Need to Know About Audit vs. Review Requirements State Requirements (Virginia) Virginia law does not require every nonprofit to obtain audited or reviewed financial statements. However, revenue thresholds matter, particularly when applying for or maintaining certain state tax exemptions. Under Virginia law: If a nonprofit’s gross annual revenue is $750,000 or more, the organization must obtain a financial review performed by an independent CPA. If gross annual revenue reaches $1.5 million or more, the Commonwealth may require an independent audit instead of a review. What This Means in Practice $0 – under $750,000 in annual revenue No state-mandated review or audit is required (though funders or grantors may still require one). $750,000 or more in