Audit and compliance requirements for nonprofits and charities.
The Single Audit threshold, state audit rules, common findings, and the records finance teams need to stay audit-ready, plus a free nonprofit compliance checklist.
Nonprofit audits by the numbers.
Single Audit threshold
$1M1
in federal awards expended (FYs from October 2024)
State audit rules
About half2
of states require an audit or review above a revenue threshold
Typical audit cost
$10-20K3
for a mid-sized nonprofit's annual audit
What audits check and how Ramp keeps records ready.
Requirements vary by funding and state. Your organization owns its policies and separation of duties; Ramp provides the documentation, coding, approval history, and reconciliation evidence underneath.
Transaction support
Auditors want a receipt, purpose, and fund or grant on every charge. Ramp captures receipts by text or mobile, so support is attached to each transaction.
Separation of duties
Auditors check that different people authorize, record, and reconcile. Ramp preserves approval history on every card charge and bill, ready to export for the auditor.
Restricted-fund tracking
Donor and grant funds need to be tagged with releases recorded. Ramp codes each purchase to a program, grant, or fund as it happens, keeping functional-expense and SEFA reporting clean.
Timely reconciliation
Auditors want accounts reconciled year-round. Ramp keeps coding and reconciliation on pace, so books stay close to audit-ready all year.
How does your solution stack up?
Manual
Typical Software
Ramp
Receipts captured at the point of purchase
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Approval history on every transaction
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Program, grant, and fund coding
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Continuous reconciliation
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One searchable trail from purchase to close
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Take the nonprofit audit checklist with you.
This five-page nonprofit compliance checklist expands the guide into nine working sections so you can assign owners, track tasks, and prepare a cleaner advisor handoff.
Explore related nonprofit compliance guides.
Learn more about audit triggers, automatic revocation, and unrelated business income.
Audit requirements
When does a nonprofit need an audit?
Review Single Audit thresholds, state requirements, timing, and the financial records an auditor may request.
Read the guide
Filing status
What happens after automatic revocation?
Verify the organization's status, organize the timeline and records, and review reinstatement with qualified advisors.
Read the guide
Unrelated activities
When may a nonprofit need Form 990-T?
Review the UBI test, the $1,000 filing threshold, and why activity-level records and expense support matter.
Read the guide
FAQs
It depends on federal awards expended, state rules, revenue or contribution thresholds, grant terms, and board requirements. Confirm the applicable requirement and timing with a qualified advisor.
$1,000,000 in federal awards expended for fiscal years beginning on or after October 1, 2024; $750,000 for years beginning before that date (2 CFR 200.501).
Yes. Federal funds received through a state or other pass-through entity count toward the $1,000,000 threshold. Confirm how your awards are classified with your advisor.
About half of states require an independent audit or review once revenue or contributions cross a threshold. The metric and level vary by state, so confirm the rule where you operate or solicit.
An audit provides the highest level of assurance and tests underlying records and controls; a review is a lower level of assurance based largely on analytical procedures and inquiry. Many states allow a review below their audit threshold.
The Schedule of Expenditures of Federal Awards lists the federal awards your organization spent during the year by program. It's a required part of a Single Audit.
Start with the GL and trial balance, reconciliations, grant support, expenses, payroll, policies, approvals, governance records, and federal award documentation. Your CPA's prepared-by-client list defines the final request.
No. Ramp helps you keep cleaner records and documentation; it doesn't determine which audit or filing requirements apply to your organization. Confirm those with a qualified advisor.
See how nonprofits keep every dollar coded, documented, and audit-ready with Ramp.
*The information provided here does not constitute accounting, legal, or financial advice and is for general informational purposes only. Please contact an accountant, attorney, or financial advisor to obtain advice with respect to your organization.