On January 18, 2022, New Jersey Governor Phil Murphy signed bills S844 and S2533, raising the threshold for nonprofit audits from $500,000 to $1M, effective immediately. Therefore, New Jersey nonprofits whose gross receipts exceed $500,000, but do not exceed $1M, no longer need an audit.
This applies to New Jersey Charitable Registration only; yellow book and single audits are federal award audits and therefore have lower thresholds. Certain grants may also have their own audit requirements as part of their application process.
The passage of the legislation is welcome news for smaller nonprofit organizations that may no longer be required to incur costly audit fees. Instead, these general and administrative audit fee funds can now be used for additional programming and help many smaller nonprofits expand the reach of their mission.
Contact Us
If you have questions about the new legislation or to learn more about how Klatzkin can help with another nonprofit-related issue, click here to contact us. We look forward to hearing from you soon.
©2022 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and does not constitute accounting, tax, or financial advice. Please consult your advisor concerning your specific situation.
Chris is a Partner and divides his time between Klatzkin’s Newtown and Hamilton offices. He focuses on serving the audit, tax, and compliance needs of independent schools and nonprofit organizations. Chris works with schools and organizations in New Jersey and Pennsylvania to navigate compliance issues, audit concerns, and tax planning matters. He has experience with.
