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As charitable organizations grow, additional financial reporting responsibilities often follow. In Wisconsin, an important compliance milestone occurs when a charitable organization receives more than $500,000 but not more than $1,000,000 in annual contributions during its most recently completed fiscal year.

Under Wisconsin Statutes § 202.12, charitable organizations within this contribution range generally must submit financial statements reviewed by an independent Certified Public Accountant (CPA) as part of their annual financial reporting to the Wisconsin Department of Financial Institutions (DFI). Organizations receiving more than $1,000,000 in annual contributions generally must submit audited financial statements instead (Wis. Stat. § 202.12).

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

Whether your nonprofit serves Milwaukee, Madison, Green Bay, Kenosha, Eau Claire, Appleton, La Crosse, or communities throughout Wisconsin, planning ahead for your financial review can simplify your annual filing and help avoid unnecessary delays.

Important: Wisconsin increased its financial reporting thresholds under 2023 Wisconsin Act 151. Organizations filing reports for older fiscal years may have been subject to the previous $300,000 review and $500,000 audit thresholds. Be sure to apply the threshold that corresponds to your organization’s applicable fiscal year (2023 Wisconsin Act 151).

Wisconsin Financial Review Requirements at a Glance

Quick Answer

If your Wisconsin charitable organization receives more than $500,000 but not more than $1,000,000 in annual contributions, Wisconsin generally requires your annual financial report to include 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 (Wis. Stat. § 202.12).

When Is a Financial Review Required in Wisconsin?

Wisconsin bases its charitable financial reporting requirements on the amount of annual contributions received during the organization’s most recently completed fiscal year.

Organizations receiving more than $500,000 but not more than $1,000,000 in annual contributions generally must submit reviewed financial statements prepared in accordance with GAAP and reviewed by an independent CPA. Once annual contributions exceed $1,000,000, audited financial statements generally become required (Wis. Stat. § 202.12).

Annual financial reports are submitted to the Wisconsin Department of Financial Institutions (DFI), which administers charitable organization registration and reporting requirements throughout the state (Wisconsin DFI Charitable Organizations FAQ).

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 Preparation, Compilation, and Review Standards).

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 (AICPA Preparation, Compilation, and Review Standards).

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

Wisconsin Law at a Glance

Wisconsin’s reporting requirements are based on annual contributions, not total revenue. Charitable organizations must file an annual financial report within 12 months after the end of their fiscal year, and organizations exceeding the applicable contribution thresholds must include reviewed or audited financial statements prepared in accordance with GAAP. Wisconsin also permits qualifying organizations to request a waiver from the reviewed or audited financial statement requirement under limited circumstances established by law (Wis. Stat. § 202.12; Wisconsin DFI Charitable Organizations FAQ).

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 required for organizations receiving more than $500,000 but not more than $1,000,000 in annual contributions (Wis. Stat. § 202.12).

Financial Audit

A financial audit generally includes:

• Detailed testing of financial records
• Confirmation procedures
• Evaluation of internal controls
• Reasonable assurance
• Generally required once annual contributions exceed $1,000,000 (Wis. Stat. § 202.12)

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
• Contribution records
• Grant documentation
• 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 financial report is completed on time.

Benefits Beyond Compliance

Although Wisconsin 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 Wisconsin.

Our team understands nonprofit financial reporting requirements and works closely with charitable 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 Wisconsin
• 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 Wisconsin?

Wisconsin generally requires reviewed financial statements when a charitable organization receives more than $500,000 but not more than $1,000,000 in annual contributions during its most recently completed fiscal year (Wis. Stat. § 202.12).

Did Wisconsin recently change its reporting thresholds?

Yes. 2023 Wisconsin Act 151 increased the review threshold from $300,000 to $500,000 and the audit threshold from $500,000 to $1,000,000. Organizations preparing filings for older fiscal years should verify which thresholds apply (2023 Wisconsin Act 151).

Does Wisconsin use revenue or contributions?

Wisconsin bases these reporting requirements on annual contributions, not total revenue (Wis. Stat. § 202.12).

When is an audit required?

Organizations generally must submit audited financial statements once annual contributions exceed $1,000,000 (Wis. Stat. § 202.12).