On November 20th, Governor Healey signed a transformative $4 billion economic development bill into law. Among its many provisions, the bill includes significant updates to the financial statement threshold reporting requirements of nonprofit organizations.
Thanks to advocacy efforts led by MassCPAs and the Massachusetts Nonprofit Network, the bill introduces the following updates, effective immediately:
- Financial Statement Review Threshold: Increased from $200,000 to $500,000.
- Financial Statement Audit Threshold: Increased from over $500,000 to over $1,000,000.
These changes apply to public charities that have not yet filed their MA Form PC with the Massachusetts Attorney General’s Office, including those with a pending status.
By easing these financial reporting requirements, small and mid-sized nonprofits will experience substantial relief, enabling them to dedicate more resources to their missions.
For detailed guidance, visit the Massachusetts Attorney General’s page on audits and reviews or contact us directly.