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Bill

Bill

SB 354

Business Regulation - Charitable Organizations - Audit and Review Thresholds

2026 Regular Session Introduced by Cheryl Kagan and 1 co-sponsor

SB 354 adjusts Maryland's charitable organization audit thresholds, potentially reducing mandatory audit requirements for smaller nonprofits to lower compliance costs.

Passed Enrolled
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Bill Summary · SB 354

Legislative bill overview

SB 354 modifies the audit and financial review requirements for charitable organizations operating in Maryland by adjusting the threshold amounts that trigger mandatory audits or reviews. The bill appears to raise or restructure these financial thresholds, potentially reducing the number of smaller charities required to undergo formal audits.

Why is this important

Audit requirements directly affect compliance costs for nonprofits. Changing thresholds can significantly impact operational budgets for smaller charities—either relieving financial burden or potentially reducing transparency and accountability depending on the direction of the change. This affects both charitable organizations' ability to direct resources to their missions and donors' access to financial information.

Potential points of contention

  • Transparency vs. burden: Raising audit thresholds may reduce costs for smaller charities but could limit public and donor access to audited financial statements, creating questions about accountability
  • Uneven regulation: Different threshold levels might create disparities in oversight rigor across organizations of similar size or function
  • Implementation details: The specific threshold amounts and transition provisions for currently-auditing organizations could significantly affect compliance timelines and costs

Compiled from official sources — confirm details with the bill’s official record.

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