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As charitable organizations grow, so do their financial reporting responsibilities. In Florida, reaching $500,000 in annual contributions is an important compliance milestone. Once this threshold is met, state law generally requires qualifying charitable organizations to submit financial statements that have been reviewed or audited by an independent Certified Public Accountant (CPA).

Understanding these requirements before your annual registration renewal can help your organization remain compliant, avoid unnecessary delays, and demonstrate financial transparency to donors, grantmakers, board members, and the public.

Whether your nonprofit serves Miami, Orlando, Tampa, Jacksonville, Tallahassee, St. Petersburg, Fort Lauderdale, or communities throughout Florida, planning ahead for your financial reporting engagement can simplify the annual filing process.

Under Florida Statutes § 496.407, charitable organizations receiving at least $500,000 but less than $1 million in annual contributions must submit either a reviewed or audited financial statement prepared by an independent CPA. Organizations receiving $1 million or more in annual contributions must submit an audited financial statement.

Florida Financial Review Requirements at a Glance

Quick Answer

If your Florida charitable organization receives at least $500,000 but less than $1,000,000 in annual contributions, Florida Statutes § 496.407 requires either a financial statement review or a financial statement audit performed by an independent Certified Public Accountant. Once annual contributions reach $1 million or more, an audit is required.

When Is a Financial Review Required in Florida?

Florida bases its financial reporting requirements on the amount of annual contributions received by a charitable organization.

Under Florida Statutes § 496.407, organizations receiving at least $500,000 but less than $1,000,000 in annual contributions must provide financial statements reviewed or audited by an independent CPA. Florida permits organizations in this range to satisfy the requirement with either type of engagement.

Once annual contributions reach $1 million or more, an audit becomes the required level of financial reporting. The statute also requires reviewed and audited financial statements to be accompanied by a report signed by the independent CPA who performed the engagement. See Florida Statutes § 496.407.

The Florida Department of Agriculture and Consumer Services (FDACS) Solicitation of Contributions program administers charitable registration and annual reporting requirements for organizations soliciting contributions in Florida.

What Is a Financial Statement Review?

A financial statement review is an accounting service performed by an independent Certified Public Accountant in accordance with the AICPA Preparation, Compilation, and Review Standards, which include the Statements on Standards for Accounting and Review Services (SSARS).

During a review engagement, the CPA performs analytical procedures and inquiries of management to determine whether any material modifications should be made to the organization’s financial statements. Unlike an audit, a review does not include extensive testing of transactions or internal controls and provides limited assurance rather than reasonable assurance.

For many Florida nonprofits, a review offers an efficient and cost-effective way to satisfy state reporting requirements while demonstrating financial accountability.

Florida Law at a Glance

Florida law gives organizations receiving at least $500,000 but less than $1 million in annual contributions the option to use either a CPA review or a CPA audit to satisfy the financial reporting requirement under Florida Statutes § 496.407.

This flexibility allows nonprofit leadership and governing boards to select the engagement that best meets their organization’s needs while remaining compliant with Florida law. Organizations expecting continued growth may even choose an audit before reaching the mandatory audit threshold.

Financial Review vs. Financial Audit

Although both services are performed by independent Certified Public Accountants, they provide different levels of assurance.

Financial Review

A financial review generally includes:

• Analytical procedures
• Management inquiries
• Limited assurance
• Lower overall cost than an audit
• Accepted by Florida for organizations receiving at least $500,000 but less than $1 million in annual contributions under Florida Statutes § 496.407.

Financial Audit

A financial audit generally includes:

• Detailed testing of financial records
• Confirmation procedures
• Evaluation of internal controls
• Reasonable assurance
• Required once annual contributions reach $1 million or more under Florida Statutes § 496.407.

Preparing for Your Financial Review

Maintaining organized financial records throughout the year can significantly streamline your financial reporting engagement.

Your CPA will commonly request:

• Statement of Financial Position
• Statement of Activities
• General ledger
• Trial balance
• Bank reconciliations
• Contribution records
• Grant documentation
• Board meeting minutes
• Investment schedules
• Significant contracts

Preparing these records before the engagement begins can reduce delays and help ensure your annual reporting is completed efficiently.

Benefits Beyond Compliance

Once a Florida charitable organization reaches the statutory contribution threshold, state law requires the applicable CPA review or audit. See Florida Statutes § 496.407. Many organizations also find that the engagement supports broader financial transparency and governance goals, including:

• Increased donor confidence
• Improved financial transparency
• Stronger grant applications
• Enhanced board oversight
• Improved accounting processes
• Greater organizational credibility

Why Choose ELT CPA LLC?

ELT CPA LLC provides independent financial statement review services for charitable organizations throughout Florida.

Our team understands nonprofit reporting requirements and works closely with organizations to complete review engagements efficiently while helping leadership remain focused on advancing their mission.

Our services include:

• Independent financial statement reviews
• Nonprofit accounting guidance
• GAAP financial statement assistance
• Annual reporting support
• Remote service throughout Florida
• Responsive communication throughout the engagement

Frequently Asked Questions

What triggers a financial review in Florida?

Charitable organizations receiving at least $500,000 but less than $1 million in annual contributions must submit either a reviewed or audited financial statement prepared by an independent CPA under Florida Statutes § 496.407.

Can we choose an audit instead of a review?

Yes. Florida Statutes § 496.407 permits organizations within this contribution range to satisfy the requirement with either a CPA review or a CPA audit.

When is an audit required?

Organizations receiving $1 million or more in annual contributions must submit audited financial statements under Florida Statutes § 496.407.

When should we begin planning?

Organizations should engage their CPA several months before their registration renewal deadline to allow adequate time for preparation and completion of the engagement.