Florida State Requirements for Nonprofit Corporations to Conduct an Annual Audit

By Elizabeth Rayne

Florida state law regulates all business transactions within the state, and every organization must be familiar with its financial reporting requirements. All Florida nonprofit organizations must submit a detailed financial report on an annual basis if they receive any funding from the state. Further, scholarship-funding nonprofits and direct-support agencies are required to have an independent audit performed each year.

Nonstate Nonprofit Organizations

The Florida Single Audit Act contains special reporting requirements for nonstate nonprofit organizations that receive financial assistance from the state. A nonprofit organization is any business that is operated for scientific, educational, charitable or similar purposes in the public interest. No part of the income may be distributed to the nonprofit's directors or officers, apart from reasonable compensation for services rendered. "Nonstate entity" refers to any nonprofit organization that received financial assistance from the government.

Nonstate Nonprofit Audit Requirements

Nonstate nonprofits are required to have either a state single audit or a project-specific audit. If the nonprofit expends $500,000 or more of the state's financial assistance, the organization will compete a state single audit. A project-specific audit occurs when the state has financed a specific project of the nonprofit. In either case, the nonprofit must have an independent audit performed by a certified public accountant and submit a detailed financial report to the auditor general. State single audits are more detailed and require more supplemental information, such as a budgetary comparison schedule.

Ready to incorporate your business? Get Started Now

Nonprofit Scholarship-Funding Programs

Nonprofits that provide scholarship funding are required to have an audit completed annually by an independent certified public accountant. If the organization provides scholarships for students who attend any public or private schools in the state, and the organization accepts donations from the public, the audit rule applies. The audit must be submitted to the auditor general and the Department of Education. Additionally, scholarship funding programs must submit quarterly reports to the Department of Education with details about scholarship distributions.

Direct-Support and Citizen-Support Organizations

All Florida direct-support and citizen-support organizations with an annual budget over $100,000 must provide for an annual financial audit of its accounts. Direct-support organizations are those that provide support to government agencies. Citizen-support organizations are created to provide support and funding for Florida state parks. The audit must be completed by an independent certified public accountant, and the report must be submitted to the auditor general. However, organizations that provide support for the Department of Environmental Protection or the Department of Agriculture and Consumer Services with a budget under $300,000 are not required to have an independent audit.

Ready to incorporate your business? Get Started Now
Rules for Fundraisers for Non-Profit Organizations in Florida


Related articles

California Non Profit Corporation Filing Requirements

The filing requirements for a nonprofit corporation in California starts with filing the appropriate paperwork to form the corporation, and then filing annual paperwork as long as the corporation is in existence. If the nonprofit needs tax-exempt status, it must make the required filings with both the state and federal governments. A nonprofit that acts as a charitable organization is required to file with the attorney general’s office and may have additional filings depending on the nonprofit's yearly gross revenues.

Non-Profit C4 Vs. C3

Title 26, Section 501(c) of the Internal Revenue Code recognizes several different types of nonprofit organizations. Nonprofit corporations, trusts and foundations have several advantages over for-profit organizations, including an exemption from paying federal income taxes. Two classes of 501(c) nonprofits, known as “C3” and “C4” organizations, are similar in some respects. However, they have different eligibility requirements, and the IRS places different restrictions on their activities and donations. When deciding whether to structure your nonprofit as a C3 or a C4, these distinctions should be considered.

Foundation Vs. 501(c)(4)

According to the Internal Revenue Code, a foundation qualifies as a 501(c)(3) nonprofit organization. The Internal Revenue Code identifies 501(c)(4) organizations as nonprofits as well. However, these two types of nonprofits are distinct from each other in that they provide different services and are organized for different purposes.

LLCs, Corporations, Patents, Attorney Help

Related articles

Non-Profit Fundraising in the State of Florida

The life of a nonprofit hinges on its ability to collect donations. In Florida, most nonprofits are subject to specific ...

501(c)(3) Auxiliary Restrictions

A 501(c)(3) auxiliary organization is an independent legal entity organized to support a parent organization that is ...

What Are the Requirements to Receive Donations in Georgia Through a Non-profit Organization?

Because the success of a nonprofit organization hinges on its ability to receive donations, an understanding of the ...

How to Start a Nonprofit Group for a Class Reunion

If you are responsible for organizing a class reunion, you have the option to set up the reunion as a nonprofit ...

Browse by category
Ready to Begin? GET STARTED