Beginning July 1, 2023, the new filing threshold for audited financial statements has been increased from $500,000 to $750,000 for those charitable organizations receiving monetary donations. Entities receiving ONLY nonmonetary donations are no longer subject to the audited financial statement requirements.

On June 1, 2023, the Secretary of State’s office issued a press release stating financial statements should be prepared on the cash basis based on their interpretation of the bill. MSCPA immediately took action through our network of Not-For-Profit and Legislation Committee members, key State leadership, and attorneys. Subsequently, on July 7, 2023, a clarification was released by the Secretary of State based on an official opinion issued by the Mississippi Attorney General’s Office stating that the audited financial statements should be prepared using generally accepted accounting principles as indicated in the Mississippi Regulation of Charitable Solicitations Act.

 Special thanks to Ed Jones, Charles Lindsay, and Tony Huffman for their tireless efforts in getting this clarification.