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As charitable organizations grow, additional financial reporting responsibilities often follow. In Georgia, one of the most important compliance milestones occurs when a charitable organization receives more than $500,000 in annual contributions during its preceding fiscal year.

Under Georgia Code § 43-17-5, charitable organizations that receive more than $500,000 but not more than $1,000,000 in contributions during the preceding fiscal year must submit financial statements reviewed by an independent Certified Public Accountant (CPA). Organizations receiving more than $1,000,000 in annual contributions generally must submit audited financial statements instead.

Understanding these requirements before your registration renewal can help your organization remain compliant while demonstrating financial transparency to donors, grantmakers, board members, and the public.

Whether your nonprofit serves Atlanta, Augusta, Columbus, Savannah, Athens, Macon, Roswell, or communities throughout Georgia, planning ahead for your required financial review can simplify the annual reporting process and help avoid unnecessary delays.

Georgia Financial Review Requirements at a Glance

Quick Answer

If your Georgia charitable organization received more than $500,000 but not more than $1,000,000 in annual contributions during its preceding fiscal year, Georgia generally requires your annual financial statements to be reviewed by an independent Certified Public Accountant (CPA) before they are filed with your charitable registration renewal. Organizations receiving more than $1,000,000 in annual contributions generally must submit audited financial statements instead.

When Is a Financial Review Required in Georgia?

Georgia bases its financial reporting requirements on the amount of charitable contributions received during the organization’s preceding fiscal year. The Georgia Secretary of State Charities Guide provides the current filing instructions and financial-statement thresholds for registered charitable organizations.

Once annual contributions exceed $500,000, qualifying charitable organizations generally must submit financial statements reviewed by an independent CPA. When annual contributions exceed $1,000,000, the reporting requirement increases to a full independent financial statement audit. These thresholds are reflected in the Georgia Secretary of State filing guidance.

The Georgia Secretary of State requires organizations to submit IRS Form 990 or Form 990-EZ with their registration or renewal filing. If the organization filed IRS Form 990-N, Georgia instead requires Georgia Form C-200 because the state does not accept the federal postcard filing by itself. Georgia Rule 590-9-4-.07 also addresses the C-200 filing requirement.

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 involve extensive testing of transactions or internal controls and provides limited assurance rather than reasonable assurance.

For many Georgia charitable organizations, a financial review satisfies state reporting requirements while providing donors, grantmakers, and governing boards with additional confidence in the organization’s financial reporting.

Georgia Law at a Glance

Georgia’s reporting requirements include an additional step that many nonprofits overlook. Along with the required financial statements, organizations generally must submit their applicable IRS Form 990 or Form 990-EZ with the registration or renewal filing. Organizations filing Form 990-N must instead complete Georgia Form C-200. The Georgia Secretary of State Charities Guide provides the current filing instructions.

Financial Review vs. Financial Audit

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

Financial Review

A financial review generally includes:

• Analytical procedures
• Inquiries of management
• Limited assurance
• Lower overall cost than an audit
• Required for organizations receiving more than $500,000 but not more than $1,000,000 in annual contributions.

Financial Audit

A financial audit generally includes:

• Detailed testing of financial records
• Confirmation procedures
• Evaluation of internal controls
• Reasonable assurance
• Required once annual contributions exceed $1,000,000.

Preparing for Your Financial Review

Maintaining organized financial records throughout the year can significantly streamline your financial review 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
• IRS Form 990 or Form 990-EZ (or Georgia Form C-200, if applicable)

Preparing these documents before the engagement begins can reduce delays and help ensure your registration renewal is completed efficiently.

Benefits Beyond Compliance

Although Georgia requires a financial review once the statutory contribution threshold has been exceeded, organizations often realize additional benefits from the engagement.

A professionally completed financial review can help:

• Improve donor confidence
• Demonstrate financial transparency
• Strengthen grant applications
• Enhance board oversight
• Identify accounting issues before they become significant
• Improve internal financial reporting processes

Why Choose ELT CPA LLC?

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

Our team understands nonprofit financial reporting requirements and works closely with organizations of all sizes to complete review engagements efficiently while minimizing disruption to daily operations.

Our services include:

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

Whether your organization is preparing for its first financial review or has completed reviews previously, ELT CPA LLC is ready to help.

Frequently Asked Questions

What triggers a financial review in Georgia?

Georgia generally requires charitable organizations receiving more than $500,000 but not more than $1,000,000 in annual contributions during their preceding fiscal year to submit financial statements reviewed by an independent CPA.

Does Georgia require an IRS Form 990 with the annual filing?

Yes. Organizations generally must submit IRS Form 990 or Form 990-EZ with their renewal. If the organization filed Form 990-N, Georgia requires Form C-200 instead.

Is a financial review less extensive than an audit?

Yes. A financial review provides limited assurance through analytical procedures and inquiries, while an audit includes substantially more testing and provides a higher level of assurance.

When should our organization begin planning?

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