On March 21st, Governor Tony Evers signed Assembly Bill 912 into law. This piece of legislation introduced significant changes to the financial reporting requirements affecting nonprofit organizations operating in Wisconsin.
While these changes are likely to affect a large number of nonprofit organizations, it is important to note that the changes included in this legislation do not go into effect until fiscal years that begin on or after March 23, 2024, meaning many nonprofits will not experience any immediate changes related to these requirements.
Threshold Changes
The bill itself is very straightforward and outlines the following increases to audit and review thresholds for nonprofits.
- The review threshold for nonprofits will increase from $300,000 in contributions to $500,000 in contributions.
- The audit threshold for nonprofits will increase from $500,000 in contributions to $1,000,000 in contributions.
The circumstances where an organization can request an audit or review waiver have also changed. The changes are noted on the revised Form #1952 found on the Wisconsin Department of Financial Institutions’ website.
These changes may impact the level of assurance service required for your organization. As noted previously, these changes go into effect for fiscal years that began on or after March 23, 2024, giving affected organizations plenty of time to react to the changes and adjust service levels for engagements taking place after the effective date.
We are here to help you navigate these and other changes impacting your nonprofit. If you have questions about Assembly Bill 912 and whether your organization will be affected by this threshold change, please reach out to your Wegner CPAs Assurance Advisor. We will continue to provide updates on changes affecting your organization. To stay on top of the latest news impacting Wisconsin nonprofits, sign up for our monthly nonprofit newsletter.
