Does a Michigan Nonprofit Need an Audit?
Michigan's audit threshold rises by $25,000 every five years. For registration statements filed in 2026 an audit is required at $575,000 or more in contributions, and a review or audit at $325,000 or more.
Data as of Sep 16, 2026 · Source: Federal Audit Clearinghouse (public data)
Does a Michigan nonprofit need an audit?
Michigan's audit threshold rises by $25,000 every five years. For registration statements filed in 2026 an audit is required at $575,000 or more in contributions, and a review or audit at $325,000 or more.
| Topic | Applies to | Rule | Threshold | Source | Last verified |
|---|---|---|---|---|---|
| State law — audit | contributions of $575,000 or more for registration statements submitted from 2025 through 2029 | A charitable organization that received contributions in its immediately preceding tax year, as reported on its IRS Form 990-series return, in the amount of $500,000.00 or more must include financial statements prepared according to generally accepted accounting principles and audited by an independent certified public accountant. For registration statements submitted on or after January 1, 2015 and before January 1, 2020 that amount is increased by $25,000.00, and it is increased by an additional $25,000.00 for every subsequent 5-year period beginning on January 1, 2020 — which puts the figure at $575,000 for statements submitted between January 1, 2025 and December 31, 2029. | $575,000 | Mich. Comp. Laws § 400.273(2)(j) and § 400.273(3) | Last verified: 2026-09-16 |
| State law — review or audit | contributions of $325,000 or more but less than $575,000 for registration statements submitted from 2025 through 2029 | A charitable organization that received contributions in its immediately preceding tax year, as reported on its IRS Form 990-series return, in the amount of $250,000.00 or more but less than $500,000.00 must include financial statements that are either reviewed or audited by an independent certified public accountant. The same five-year escalator in § 400.273(3) applies, which puts the range at $325,000 up to $575,000 for statements submitted between January 1, 2025 and December 31, 2029. | $325,000 | Mich. Comp. Laws § 400.273(2)(j) and § 400.273(3) | Last verified: 2026-09-16 |
Common questions
Does a Michigan nonprofit need an audit?
Michigan's audit threshold rises by $25,000 every five years. For registration statements filed in 2026 an audit is required at $575,000 or more in contributions, and a review or audit at $325,000 or more.
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.