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As charitable organizations grow, additional financial reporting responsibilities often follow. In Mississippi, one major compliance milestone occurs when a registered charitable organization receives at least $250,000 but not more than $750,000 in monetary donations during its fiscal year and all fundraising functions are carried out by unpaid persons. Mississippi Code § 79-11-507.

Under Mississippi Code § 79-11-507, organizations within this statutory range generally must submit financial statements reviewed by an independent Certified Public Accountant (CPA). Organizations receiving more than $750,000 in monetary donations, or organizations whose fundraising functions are not performed solely by unpaid persons, are subject to the higher financial-statement requirement. Mississippi Secretary of State filing instructions.

Mississippi defines monetary donations as cash or cash equivalents, and governmental funding is excluded from the statutory definition of contributions. Mississippi Code § 79-11-501.

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

Whether your nonprofit serves Jackson, Gulfport, Hattiesburg, Southaven, Biloxi, Tupelo, Meridian, or communities throughout Mississippi, planning ahead for your financial review can simplify your annual filing and help avoid unnecessary delays.

Michigan Financial Review Requirements at a Glance

Quick Answer

If your Mississippi charitable organization receives at least $250,000 but not more than $750,000 in monetary donations during its fiscal year, and all fundraising functions are performed by unpaid persons, Mississippi law generally requires the annual filing to include financial statements reviewed by an independent CPA. Mississippi Code § 79-11-507.

The Secretary of State’s online filing instructions currently describe the review band as more than $250,000 but less than $750,000, and require an audit when monetary donations exceed $750,000 or fundraising is not performed solely by unpaid persons. Mississippi Secretary of State filing instructions.

When Is a Financial Review Required in Mississippi?

Mississippi bases its charitable reporting requirements on monetary donations received during the organization’s fiscal year, rather than total organizational revenue.

The statute provides for a CPA review for registered organizations receiving at least $250,000 but not more than $750,000 in monetary donations when all fundraising functions are performed by unpaid persons. The Secretary of State’s filing instructions use slightly different endpoint wording, so organizations exactly at $250,000 or $750,000 should confirm the current filing treatment before submission. Mississippi Code § 79-11-507 Mississippi Secretary of State filing instructions.

Governmental funds are excluded from the statutory definition of contributions, while monetary donations are defined as cash or cash equivalents. Mississippi Code § 79-11-501.

The Mississippi Secretary of State’s Charities Division administers charitable registration and annual filing requirements for organizations soliciting contributions within the state.

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 Statements on Standards for Accounting and Review Services (SSARS) issued by the American Institute of Certified Public Accountants (AICPA). AICPA review standards.

During a review engagement, the CPA primarily performs analytical procedures and inquiries of management and provides limited assurance rather than the reasonable assurance provided by an audit. AICPA review standards.

For many Mississippi charitable organizations, a financial review satisfies the applicable state reporting requirement while enhancing financial transparency and strengthening confidence among donors, grantmakers, and governing boards.

Mississippi Law at a Glance

Mississippi has a distinctive charitable reporting framework. The thresholds focus on monetary donations, governmental funding is excluded from contributions, and eligibility for a review depends on fundraising functions being carried out solely by unpaid persons. Mississippi updated its Charitable Solicitations Act in 2024 to clarify monetary donations and fiscal-year filing requirements. Mississippi Secretary of State – 2024 Act updates.

Because the statute and the Secretary of State’s online filing instructions currently use different endpoint wording for the review range, organizations near either threshold should verify the required filing before the annual submission.

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

The statutory review provision applies to organizations in the $250,000-to-$750,000 monetary-donation band when all fundraising functions are performed by unpaid persons. Mississippi Code § 79-11-507.

Financial Audit

A financial audit generally includes:

• Detailed testing of financial records
• Confirmation procedures
• Evaluation of internal controls
• Reasonable assurance

The Secretary of State’s filing instructions require an audited financial statement when monetary donations exceed $750,000 or when fundraising functions are not performed solely by unpaid persons. Mississippi Secretary of State filing instructions.

Preparing for Your Financial Review

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

Your CPA will commonly request:

• Statement of Financial Position
• Statement of Activities
• General ledger
• Trial balance
• Bank reconciliations
• Donation records
• Grant documentation, including records that distinguish governmental funding
• Board meeting minutes
• Investment schedules
• Significant contracts
• IRS Form 990

Preparing these records before the engagement begins can reduce delays and help ensure your annual registration is completed on time.

Benefits Beyond Compliance

Although Mississippi may require reviewed financial statements once the applicable statutory conditions are met, many organizations also realize additional benefits, including:

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

Why Choose ELT CPA LLC?

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

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

Our services include:

• Independent financial statement reviews
• Nonprofit accounting guidance
• GAAP financial statement assistance
• Annual reporting support
• Remote service throughout Mississippi
• 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 Mississippi?

Mississippi law provides for a CPA review when a registered charitable organization receives at least $250,000 but not more than $750,000 in monetary donations and all fundraising functions are carried out by unpaid persons. Mississippi Code § 79-11-507.

Are government grants included in the threshold?

No. Mississippi excludes money or property received from governmental authorities from the statutory definition of contributions. Mississippi Code § 79-11-501.

What if we use paid fundraising professionals?

The Secretary of State’s instructions state that an audited financial statement is required when fundraising functions are not performed solely by unpaid persons. Mississippi Secretary of State filing instructions.

When should our organization begin planning?

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