Connecticut and Illinois are two more states making changes to their audit thresholds
Similar to Mississippi and New Mexico, more states are changing their audit thresholds that nonprofit organizations are to follow. Below is a quick summary of passed and proposed state changes in Connecticut and Illinois, respectively.
Connecticut
Public Act No. 23-98 – Connecticut passed a law on June 14, 2023 that raises the state’s audit threshold from $500,000 to $1 million of gross revenue. A review or audit is acceptable if the charitable organization had gross revenue in excess of $500,000 but not more than $1 million. Gross revenue does not include grants or fees from government agencies, or the revenue derived from funds held in trusts for the benefit of the organization. The bill is effective July 1, 2023.
Illinois
HB1197 – The bill is currently with the Governor for signing and would be effective January 1, 2024. This bill would raise the state’s audit threshold from $300,000 to $500,000 of contributions.
Nonprofit organizations should stay current on their state requirements to maintain compliance with current laws and regulations. Sign up for CLA’s nonprofit thought leadership and stay informed as major changes occur.
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