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New York State 2025 Non-Profit Audit and Review Requirements

For non-profit organizations in New York State (NYS), financial transparency is essential to maintaining credibility and securing funding. NYS has specific financial reporting requirements that must be followed to remain compliant. These NYS non-profit financial oversight compliance rules potentially mean that your organization may need a full CPA audit or a CPA review. Understanding these requirements will help you avoid penalties and build trust with donors and stakeholders.

Here’s what you need to know and how you can prepare.

Understanding your financial reporting obligations

Non-profits are required to meet financial reporting thresholds based on your gross revenue and support:

  • If your organization’s revenue exceeds $1 million, you must submit a CPA audit report.
  • If your revenue falls between $250,000 and $1 million, you are required to file a financial statement accompanied by an independent CPA’s review report.

Smaller non-profits with revenue below $250,000 are generally not required to undergo a CPA audit or review, but you may still need to submit financial statements depending on funding sources and other contractual obligations you may have.

What does a CPA non-profit audit involve?

If your revenue exceeds $1 million, your non-profit organization will need to undergo a CPA audit. This process includes:

  • A financial statement examination where your financial records are reviewed for accuracy and compliance with Generally Accepted Accounting Principles (GAAP).
  • An internal controls evaluation to assess your financial management procedures and identify risks.
  • A transaction verification process, where revenue, expenses, and supporting documentation are examined to ensure legitimacy.
  • An audit report issuance after completing the review, in which the CPA provides their opinion on your financial statements.
  • Recommendations for improvement if weaknesses are found, where the auditor may provide guidance on strengthening your financial processes.

How a non-profit CPA review differs from a non-profit audit

If your non-profit’s revenue is between $250,000 and $1 million, you will need a CPA review instead of a full audit. A review provides limited assurance that your financial statements conform to accounting principles, but it does not include in-depth verification of transactions.

Non-profits in New York State must file their annual financial reports using the CHAR500 form with the New York State Attorney General’s Charities Bureau. The standard deadline for filing is 4.5 months after the close of the organization’s fiscal year, but organizations affected by certain circumstances, such as natural disasters, may receive extensions. You can review specific deadlines based on your organization’s registration statute on nys.gov.

Additionally, financial disclosure reports for certain non-profits must be filed within 30 days of the close of a reporting period, which typically runs from January 1 to June 30 or July 1 to December 31.

To ensure compliance, it’s best to check the latest filing requirements directly with the New York State Attorney General’s Office or the Department of State.

New York State non-profit financial reporting compliance penalties

Failing to meet New York State (NYS) financial reporting requirements can result in serious penalties, which may impact your non-profit’s operations and credibility. Here are some potential consequences:

  • Fines and fees– Non-compliant organizations may face monetary penalties for failing to file required financial reports on time.
  • Loss of tax-exempt status– If your organization does not meet reporting obligations, it may risk losing its tax-exempt status, which can affect funding and donations.
  • Legal action– The NYS Attorney General’s office may take legal action against non-profits that fail to comply with financial disclosure laws.
  • Revocation of registration– Non-profits that do not file required reports may have their registration revoked, preventing them from legally operating in the state.
  • Damage to reputation– Non-compliance can lead to loss of donor trust and funding opportunities, making it harder to secure grants and contributions.

To avoid these penalties, ensure that your organization submits financial reports on time and follows NYS compliance guidelines. The following checklist for financial reporting in New York State can help you stay on top of reporting deadlines.

NYS CPA audit and CPA review compliance checklist for non-profits

To help you stay on top of the 2025 NYS non-profit audit and review compliance, here is a checklist to ensure your non-profit organization meets the compliance requirements:

  • Determine your financial reporting obligations by confirming whether you need a CPA audit, a CPA review, or basic financial statement submission based on your revenue.
  • Maintain accurate financial records and keep well-organized financial documents, including income statements, expense reports, and funding records.
  • Ensure compliance with GAAP by following Generally Accepted Accounting Principles to avoid reporting discrepancies.
  • Review internal controls to assess financial management procedures and identify risks.
  • Prepare for filing deadlines by checking NYS guidelines to ensure timely submission of your audit or review report.
  • Engage a CPA early to work with a Certified Public Accountant before your audit or review to resolve compliance gaps.
  • Verify transactions and supporting documentation to ensure all revenue and expenses are documented properly for external verification.
  • Communicate transparency to stakeholders by sharing audit or review results with donors and grant providers to reinforce financial credibility.

Contact MEDOWS CPA for assistance with your non-profit audit and review needs

Navigating financial compliance can be challenging, but with proper preparation, you can ensure that your organization meets NYS requirements in 2025. By understanding the audit and review thresholds, following best practices, and working proactively, you can protect your funding sources, strengthen donor confidence, and maintain your organization’s integrity. MEDOWS CPA can assist, contact us today.