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As charitable organizations grow, additional financial reporting responsibilities often follow. In Mississippi, one of the first major compliance milestones occurs when a charitable organization receives at least $250,000 but not more than $750,000 in monetary donations during its fiscal year.

Under Mississippi Code § 79-11-507, charitable organizations within this range generally must submit financial statements reviewed by an independent Certified Public Accountant (CPA) as part of their annual charitable registration, provided that all fundraising functions are carried out by unpaid volunteers. Organizations receiving more than $750,000 in monetary donations, or organizations using paid fundraising professionals, generally must submit audited financial statements instead. Government grants are excluded when calculating these monetary donation thresholds.

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.

References

• Mississippi Code § 79-11-507 – Reports to Secretary of State; Financial Statements
  https://law.justia.com/codes/mississippi/title-79/chapter-11/regulation-of-charitable-solicitations/section-79-11-507/
• Mississippi Secretary of State – Charities Division Filing Instructions
  https://charities.sos.ms.gov/online/portal/ch/page/instructions/Portal.aspx

Mississippi Financial Review Requirements at a Glance

References

• Mississippi Code § 79-11-507
• Mississippi Secretary of State – Charities Division

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 volunteers, Mississippi generally requires your annual registration to include financial statements reviewed by an independent Certified Public Accountant (CPA). Organizations receiving more than $750,000 in monetary donations, or organizations using paid fundraising professionals, generally must submit audited financial statements instead. Government grants are excluded when determining these thresholds.

When Is a Financial Review Required in Mississippi?

Mississippi bases its reporting requirements on the amount of monetary donations received during the organization’s fiscal year.

Organizations receiving at least $250,000 but not more than $750,000 in monetary donations generally must submit reviewed financial statements prepared by an independent CPA. However, this review option is available only when all fundraising activities are carried out by persons who are unpaid for their services. If paid fundraising professionals are involved, Mississippi generally requires an audit regardless of contribution amount. Government grants are excluded from the calculation of monetary donations.

The Mississippi Secretary of State’s Charities Division administers these filing requirements and reviews annual registrations submitted by charitable organizations soliciting contributions within the state.

References

• Mississippi Secretary of State – Charities Division Filing Instructions

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).

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

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

References

• American Institute of Certified Public Accountants – Statements on Standards for Accounting and Review Services (SSARS)
  https://www.aicpa-cima.com/resources/landing/ssars

Mississippi Law at a Glance

Mississippi has one of the more unique charitable reporting laws in the country. The financial reporting thresholds are based on monetary donations, government grants are excluded from the calculation, and the review requirement applies only if all fundraising functions are performed by unpaid volunteers. Organizations that hire professional fundraisers should carefully evaluate whether an audit is required even if they have not exceeded the $750,000 donation threshold.

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
• Generally accepted for organizations receiving at least $250,000 but not more than $750,000 in monetary donations when fundraising is performed solely by unpaid volunteers.

Financial Audit

A financial audit generally includes:

• Detailed testing of financial records
• Confirmation procedures
• Evaluation of internal controls
• Reasonable assurance
• Generally required for organizations receiving more than $750,000 in monetary donations or those using paid fundraising professionals.

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 (to distinguish excluded government grants)
• 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 requires reviewed financial statements once the statutory threshold has been reached, 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 generally requires charitable organizations receiving at least $250,000 but not more than $750,000 in monetary donations to submit reviewed financial statements, provided all fundraising functions are performed by unpaid volunteers.

Are government grants included in the threshold?

No. Mississippi excludes government grants when calculating the monetary donation thresholds for review and audit requirements.

What if we use paid fundraising professionals?

Organizations that use paid fundraising professionals generally must submit audited financial statements, even if they have not exceeded the $750,000 monetary donation threshold.

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.