Does a New Mexico Nonprofit Need an Audit?
New Mexico requires a registered charitable organization with more than $750,000 in total expenses to have an independent audit and file an electronic copy with the Department of Justice. The threshold moved from $500,000 of revenue to $750,000 of expenses on January 1, 2024.
Data as of Sep 21, 2026 · Source: Federal Audit Clearinghouse (public data)
Does a New Mexico nonprofit need an audit?
New Mexico requires a registered charitable organization with more than $750,000 in total expenses to have an independent audit and file an electronic copy with the Department of Justice. The threshold moved from $500,000 of revenue to $750,000 of expenses on January 1, 2024.
| Topic | Applies to | Rule | Threshold | Source | Last verified |
|---|---|---|---|---|---|
| State law | more than $750,000 in total expenses, effective January 1, 2024 | During the New Mexico 2023 Legislative Session, SB240 (Tax Exempt Organization Tax Audits) made changes to Chapter 57 - Trade Practices and Regulations, ARTICLE 22 - Charitable Solicitations, effective 1/1/2024. SB240 amends the Charitable Solicitations Act (CSA) by changing the threshold from $500,000 in total revenue to $750,000 in total expenses for organizations that currently are required to provide an annual audit. | $750,000 | New Mexico Department of Justice, Charities (NMSA 1978 § 57-22) | Last verified: 2026-09-21 |
Common questions
Does a New Mexico nonprofit need an audit?
New Mexico requires a registered charitable organization with more than $750,000 in total expenses to have an independent audit and file an electronic copy with the Department of Justice. The threshold moved from $500,000 of revenue to $750,000 of expenses on January 1, 2024.
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.