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West Virginia requires many charitable organizations that solicit donations from the public to register with the West Virginia Secretary of State, Charities Division. Larger organizations must also provide independently audited financial statements as part of their charitable registration filing. (West Virginia Secretary of State, Charitable Organizations)

The audit requirement is not based on a nonprofit’s total revenue. Instead, West Virginia looks at the amount the organization raises in annual contributions, excluding grants received from governmental agencies and private foundations. Under the governing statute, a charitable organization raising more than $500,000 per year in qualifying contributions must submit an audit report prepared by an independent Certified Public Accountant. The Secretary of State’s filing instructions use the practical threshold of $500,000 or more.  (W. Va. Code § 29-19-5; West Virginia Secretary of State, Registration Steps)

This distinction matters for nonprofits that receive a mixture of public donations, program-service revenue, government contracts, foundation grants, membership fees, and other income. An organization may report total revenue well above $500,000 without crossing West Virginia’s audit threshold, while another organization with limited earned income may require an audit because its public fundraising exceeds the threshold.

Whether your nonprofit operates in Charleston, Huntington, Morgantown, Parkersburg, Wheeling, Martinsburg, Beckley, or elsewhere in the Mountain State, identifying the correct contribution amount before year-end can help prevent an incomplete registration filing.

West Virginia Audit Requirements at a Glance

The statute requires a CPA review when annual qualifying contributions exceed $200,000 but remain below $500,000. At the higher level, an independent CPA audit is required.  (W. Va. Code § 29-19-5)

Quick Answer

A West Virginia charitable organization that raises approximately $500,000 or more in annual contributions, after excluding government-agency and private-foundation grants, should generally plan to submit audited financial statements prepared by an independent CPA. (W. Va. Code § 29-19-5; West Virginia Secretary of State, Registration Steps)

The audit is submitted to the West Virginia Secretary of State, Charities Division with the organization’s charitable registration or renewal filing.

When Does West Virginia Require a Nonprofit Audit?

West Virginia uses a tiered financial reporting structure based on qualifying annual contributions. (W. Va. Code § 29-19-5)

The statutory language requires an audit for organizations raising more than $500,000, while the Secretary of State’s current registration instructions direct organizations to attach an audit at $500,000 or more. Organizations at or very near exactly $500,000 should confirm the filing treatment with the Charities Division and avoid waiting until the renewal deadline to address the issue.  (W. Va. Code § 29-19-5; West Virginia Secretary of State, Registration Steps)

West Virginia Uses Contributions—not Total Revenue

The most important state-specific feature is that West Virginia’s audit test is based on the amount raised in contributions. (W. Va. Code § 29-19-5)

It is not automatically based on:

• Total revenue shown on the audited financial statements
• Total income reported on Form 990
• Total assets
• Total expenses
• Program-service revenue alone

A nonprofit with $1.2 million in total revenue may not necessarily need an audit under West Virginia’s charitable solicitation law if most of that revenue consists of excluded grants or earned program income.

Conversely, a charity with $600,000 in qualifying public contributions may need an audit even if its total operations are otherwise relatively straightforward.

Organizations should therefore prepare a separate schedule reconciling total accounting revenue to the amount counted for West Virginia registration purposes.

Government and Private-Foundation Grants Are Excluded

West Virginia expressly excludes grants from:

• Governmental agencies
• Private foundations

These grants are removed when determining whether the organization exceeds the $200,000 review threshold or the $500,000 audit threshold.  (W. Va. Code § 29-19-5)

Consider this example:

After excluding the government and private-foundation grants—and separately evaluating whether program revenue constitutes a contribution—the amount relevant to West Virginia’s audit calculation may be approximately $525,000.

That organization could be subject to the audit requirement despite the fact that its total accounting revenue is substantially higher than the state threshold.

What May Count as a Contribution?

Depending on the facts and the nature of the solicitation, qualifying contributions may include:

• Individual donations
• Corporate gifts
• Contributions collected through online fundraising
• Direct-mail donations
• Telephone or in-person solicitation proceeds
• Public campaign receipts
• Certain special-event proceeds
• Property or other things of value donated to the organization
• Amounts collected by a professional solicitor on the charity’s behalf

The precise classification should be supported by the organization’s accounting records, fundraising reports, solicitation materials, and grant agreements.

A charity near the threshold should avoid assuming that every item labeled “grant revenue” is excluded. The identity and classification of the grantor matter.

West Virginia’s Financial Reporting Levels

West Virginia’s graduated reporting structure requires stronger CPA involvement as qualifying contributions increase.

Organizations Above $200,000

A charitable organization raising more than $200,000 but less than $500,000 in qualifying annual contributions must submit a financial review performed by an independent CPA.  (W. Va. Code § 29-19-5)

A review provides limited assurance and is substantially different from an audit. It generally relies on analytical procedures and inquiries rather than the extensive testing and external confirmations commonly performed during an audit.

Organizations at the Audit Level

Organizations above the statutory $500,000 threshold must submit audited financial statements and an independent auditor’s report. The Secretary of State’s current filing instructions use $500,000 or more as the practical filing threshold. (W. Va. Code § 29-19-5; West Virginia Secretary of State, Registration Steps)

West Virginia law defines an audit as a systematic examination of records and supporting evidence that includes written assurance that the financial statements are fairly presented in conformity with generally accepted accounting principles.  (W. Va. Code § 29-19-5)

Registration With the West Virginia Secretary of State

The West Virginia Secretary of State, Charities Division registers and regulates charitable organizations, professional solicitors, and professional fundraising counsel operating within the state.  (West Virginia Secretary of State, Charitable Organizations)

Organizations that intend to solicit the public for charitable contributions in West Virginia generally must register unless they qualify for a statutory exemption. An organization that authorizes another party to solicit on its behalf may also be required to register even if its own employees or volunteers do not directly solicit.  (W. Va. Code § 29-19-5)

Registration is valid for one year and must be renewed for additional one-year periods.  (West Virginia Secretary of State, Charities FAQ)

The $50,000 Registration Exemption

West Virginia law provides a registration exemption for certain smaller charitable organizations that: (W. Va. Code § 29-19-6)

• Do not employ a professional solicitor or fundraiser
• Do not intend to receive more than $50,000 from the public during the calendar year
• Do not actually receive more than $50,000 from the public  (W. Va. Code § 29-19-6)

If an organization unexpectedly exceeds the $50,000 amount, it generally must file its registration statement within 30 days after crossing the threshold.

This registration threshold is separate from the CPA reporting thresholds.

A charity may therefore:

• Be exempt from registration below $50,000
• Need registration but no CPA review between $50,000 and $200,000
• Need a CPA review above $200,000
• Need an audit at approximately $500,000

What Must Be Filed?

The West Virginia registration statement generally requires financial information for the organization’s immediately preceding fiscal year.

Required financial information may include:

• Balance sheet or statement of financial position  (W. Va. Code § 29-19-5)
• Statement of income and expenses or statement of activities
• Information showing the type and amount of funds raised
• Fundraising costs and expenses
• Information showing how funds were disbursed or allocated
• Form 990 when applicable
• CPA review or audited financial statements when required
• IRS tax-exemption determination letter
• Organizational and leadership information
• Information about professional fundraisers
• Copies of solicitation contracts when applicable

The Secretary of State’s registration guidance instructs organizations that raised more than $50,000 in the preceding year to attach Form 990. It also separately identifies the CPA review and audit thresholds.

Charitable Registration Is Separate From the Corporate Annual Report

A West Virginia nonprofit corporation may have two distinct Secretary of State filing obligations:

1. A charitable organization registration or renewal
2. A business-entity annual report

The corporate annual report is generally filed between January 1 and June 30 and carries a separate filing fee. Completing that report does not replace the organization’s Charities Division registration.

Likewise, maintaining federal Section 501(c)(3) status does not automatically satisfy West Virginia charitable solicitation requirements.

Professional Fundraisers and Fundraising Counsel

West Virginia separately regulates professional solicitors and professional fundraising counsel who work with charities to raise money from the public. The Charities Division registers these providers and oversees their relationships with charitable organizations.

A nonprofit using an outside fundraising provider should maintain:

• A signed written contract
• Records of gross funds raised
• Solicitation expenses
• Compensation paid to the fundraiser
• Net proceeds remitted to the charity
• Copies of required state filings
• Board approval or oversight documentation

The Secretary of State’s filing instructions direct professional fundraisers and fundraising counsel to attach copies of their contracts or agreements with charities soliciting in West Virginia.

These records may also be relevant during the nonprofit’s financial statement audit.

West Virginia Disclosure Requirements

Registered charities and their fundraisers must provide certain disclosures when soliciting the public.

West Virginia law requires written disclosure of information that includes:

• The charitable organization’s name
• A representative who can respond to inquiries  (W. Va. Code ch. 29, art. 19)
• The purpose of the solicitation
• Information about solicitation and administrative costs when requested  (W. Va. Code § 29-19-5)
• Applicable raffle, bingo, or similar permit information

Funds raised for a stated charitable purpose generally may not be used for an inconsistent purpose.

These solicitation requirements operate separately from the financial statement audit, but the audit may test whether restricted or purpose-specific funds were properly recorded and spent.

Preparing for a West Virginia Nonprofit Audit

An organization approaching the $500,000 contribution threshold should begin planning before its fiscal year closes.

Your CPA will commonly request:

• Year-end trial balance
• General ledger
• Bank reconciliations
• Contribution records by source
• Donor reports
• Government grant schedules
• Private-foundation grant schedules
• Grant agreements
• Program-service revenue schedules
• Fundraising campaign reports
• Special-event summaries
• Professional fundraiser contracts
• Accounts receivable and payable schedules
• Payroll reports
• Fixed-asset schedules
• Investment statements
• Debt agreements
• Board and committee minutes
• Net-asset restriction schedules
• Internal control documentation
• Prior-year financial statements
• Draft IRS Form 990

The organization should also prepare a clear reconciliation showing:

1. Total revenue under generally accepted accounting principles
2. Government-agency grants
3. Private-foundation grants
4. Program-service and earned revenue
5. Qualifying contributions used for the West Virginia threshold

That schedule can help management, the auditor, and the Charities Division understand why the organization concluded that an audit was—or was not—required.

Common West Virginia Compliance Problems

Using Total Revenue as the Threshold

West Virginia’s audit requirement is based on qualifying contributions, not total organizational revenue. Using the top line of Form 990 or the financial statements without further analysis can produce the wrong conclusion.

Including Government Grants

Government-agency grants are excluded from the contribution calculation used for the CPA review and audit thresholds.  (W. Va. Code § 29-19-5)

Treating Every Grant as a Private-Foundation Grant

A corporate contribution, grant from a public charity, donor-advised fund distribution, or sponsorship payment may not necessarily qualify for the private-foundation exclusion.

Overlooking the CPA Review Requirement

Organizations below the audit threshold may still need a financial review once qualifying contributions exceed $200,000.

Confusing the Charity Filing With the Corporate Annual Report

The two filings serve different purposes and may have separate deadlines, documentation, and fees.

Waiting Too Long to Engage an Auditor

Audit procedures may include confirmations, revenue testing, grant testing, expense testing, internal-control inquiries, board-minute review, financial statement drafting, and management approval. Beginning after the registration deadline approaches can cause delays.

Filing Late

The West Virginia Secretary of State states that late charitable registration filings are subject to a $25 fee for each month or portion of a month the registration remains late.

West Virginia Law at a Glance

West Virginia’s charitable registration and reporting requirements are primarily contained in the Solicitation of Charitable Funds Act, West Virginia Code Chapter 29, Article 19.

Section 29-19-5 governs charitable registration statements and financial documentation. It requires:

• A CPA audit above the statutory contribution threshold
• A CPA financial review for organizations in the intermediate contribution range
• Financial statements and organizational disclosures
• Tax-exemption documentation
• Information regarding solicitation activities  (West Virginia Secretary of State, Charities FAQ)

The law is administered through the West Virginia Secretary of State’s Charities Division, which also regulates professional fundraisers and maintains charitable registration records.

Benefits Beyond West Virginia Compliance

An independent financial statement audit can provide value beyond satisfying the state filing requirement.

An audit may help a nonprofit:

• Strengthen board oversight
• Improve internal controls
• Support grant applications
• Meet lender requirements
• Improve Form 990 accuracy
• Identify contribution restrictions
• Document compliance with grant agreements
• Support multistate charitable registration
• Increase donor confidence
• Prepare for future growth

A West Virginia organization may also need an audit even when it falls below the state’s qualifying contribution threshold. Separate obligations can arise from federal awards, private grants, lender agreements, organizational bylaws, board policy, or another state’s registration laws.

Why Choose ELT CPA LLC?

ELT CPA LLC provides independent financial statement audit services for nonprofit and charitable organizations operating in West Virginia.

Our team understands that West Virginia’s audit threshold is based on qualifying contributions rather than total revenue. We work with nonprofits to distinguish public contributions from government and private-foundation grants, reconcile threshold calculations to Form 990, and organize the financial documentation needed for the Secretary of State filing.

Whether your nonprofit is approaching the threshold for the first time or already undergoes an annual audit, ELT CPA LLC can help create an efficient, organized, and responsive audit process.

Frequently Asked Questions

What is West Virginia’s nonprofit audit threshold?

The statute requires an audit when a charitable organization raises more than $500,000 per year in qualifying contributions. The Secretary of State’s current filing instructions use $500,000 or more, so organizations approaching $500,000 should plan conservatively.

Is the threshold based on total revenue?

No. It is based on annual contributions after specified grant exclusions.

Do government grants count?

No. Grants from governmental agencies are excluded from the CPA review and audit threshold calculation.

Do private-foundation grants count?

No. The statute also excludes grants from private foundations. Organizations should document the grantor’s classification before excluding an amount.

Is a CPA review required below $500,000?

Yes. A charity raising more than $200,000 but less than $500,000 in qualifying annual contributions generally must submit a financial review performed by an independent CPA.

Which agency oversees charitable organizations in West Virginia?

The West Virginia Secretary of State, Charities Division registers and regulates charitable organizations and professional fundraising providers.

Must all nonprofits register?

No. Certain organizations may qualify for exemptions. For example, an organization that does not use a professional solicitor and does not raise more than $50,000 from the public may qualify for an exemption.

What happens if an exempt organization exceeds $50,000?

An organization that unexpectedly crosses the $50,000 amount generally must file its registration statement within 30 days.  (W. Va. Code § 29-19-5; West Virginia Secretary of State, Registration Steps)

Is charitable registration the same as the corporate annual report?

No. These are separate filings, and the corporate annual report carries its own filing requirement and fee.

Are late fees imposed?

Yes. The Secretary of State states that the late charitable registration fee is $25 per month or portion of a month.