Does a Massachusetts Nonprofit Need an Audit?
Massachusetts requires an audited financial statement once a public charity's gross support and revenue exceeds $500,000, but a charity at or below $1,000,000 may file a CPA review report instead. Above $1,000,000 the audit cannot be substituted.
Data as of Sep 16, 2026 · Source: Federal Audit Clearinghouse (public data)
Does a Massachusetts nonprofit need an audit?
Massachusetts requires an audited financial statement once a public charity's gross support and revenue exceeds $500,000, but a charity at or below $1,000,000 may file a CPA review report instead. Above $1,000,000 the audit cannot be substituted.
| Topic | Applies to | Rule | Threshold | Source | Last verified |
|---|---|---|---|---|---|
| State law — audit | gross support and revenue of more than $500,000 in the fiscal year covered by the report | A public charity, other than one which files its annual probate account with the division in lieu of the annual report, which received more than $500,000 in gross support and revenue during the fiscal year covered by its report must submit a complete audited financial statement together with its annual report. For purposes of this section, gross support and revenue shall not include any gains or losses from the sale of a capital asset. | $500,000 | Mass. Gen. Laws ch. 12, § 8F | Last verified: 2026-09-16 |
| State law — review in lieu of audit | gross support and revenue of not more than $1,000,000 | A public charity which received not more than $1,000,000 in gross support and revenue during the fiscal year covered by its report may in lieu of an audited financial statement submit a financial statement accompanied by an independent certified public accountant's review report as that report is defined by the American Institute of Certified Public Accountants. | $1,000,000 | Mass. Gen. Laws ch. 12, § 8F | Last verified: 2026-09-16 |
Common questions
Does a Massachusetts nonprofit need an audit?
Massachusetts requires an audited financial statement once a public charity's gross support and revenue exceeds $500,000, but a charity at or below $1,000,000 may file a CPA review report instead. Above $1,000,000 the audit cannot be substituted.
How does this differ from the federal single audit?
The federal single audit applies when a nonprofit spends $1,000,000 or more in federal awards in a fiscal year beginning on or after October 1, 2024 ($750,000 for earlier fiscal years). State rules are separate and are listed on this page.