New Law Raises NonProfit Audit Threshold in NJ
N.J. Governor Murphy signed legislation that effective immediately raises the threshold at which a nonprofit must undergo an audit from $500,000 to $1 million in gross revenues. It also provides that in-kind donations directly related to the mission of nonprofits shall not be included towards the $1 million threshold.
The cost of a typical audit for a nonprofit with gross revenues between $500,000 and $1,000,00 is usually over $15,000. That is money they can ill afford to spend, especially when considering the financial devastation wreaked on so many nonprofits in the wake of the coronavirus pandemic.
“It’s been 12 years since the audit threshold has been raised, so this new law was a long time coming,” said Jeffrey Kaszerman, vice president of government relations for the NJCPA. “This measure will help many small charities and nonprofits save thousands of dollars and to continue their important missions.”
Source: NJ Legislature