HB0483 • 2026

Business Regulation - Charitable Organizations - Audit and Review Thresholds

Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Delegate Wolek
Last action: 2026-05-12
Official status: Approved by the Governor - Chapter 393
Effective date: 2026-07-01

Plain English Breakdown

The exact transition plan for charitable organizations moving from old thresholds to new ones is not specified in the official source material.

Charitable Organizations Audit and Review Thresholds

This law changes the income levels at which charitable organizations must provide audits or reviews to the Secretary of State when registering.

What This Bill Does

Increases the minimum gross income from charitable contributions that requires an audit by a certified public accountant (CPA) from $750,000 to $1,000,000.
Raises the threshold for a review by a CPA from $300,000 to $400,000 but less than $1,000,000.
Allows the Secretary of State to accept an affidavit instead of an audit or review if cash receipts are not more than $400,000 and make up 20% or less of the organization's income.
Increases the maximum amount of gross income at which the Secretary of State can require an audit or review from $750,000 to $1,000,000.

Who It Names or Affects

Charitable organizations that receive charitable contributions and must register with the Secretary of State.
The Secretary of State who oversees registration requirements for these organizations.

Terms To Know

Audit: A detailed examination of a charity's financial records by an independent CPA to ensure accuracy and compliance.
Review: An assessment of a charity’s financial statements that is less extensive than an audit but still provides some assurance about the organization's finances.

Limits and Unknowns

The law does not specify how charitable organizations will transition to these new requirements.
It remains unclear if there are additional compliance costs for charities due to these changes.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

833920/1

None

Favorable with Amendments { 833920/1 Adopted

Plain English: AMENDMENTS TO HOUSE BILL 483 (First Reading File Bill) On page 2, in lines 10 and 17, in each instance, strike “$500,000” and substitute “$400,000”.

AMENDMENTS TO HOUSE BILL 483 (First Reading File Bill) On page 2, in lines 10 and 17, in each instance, strike “$500,000” and substitute “$400,000”.
HB0483/833920/1 BY: Economic Matters Committee

Bill History

2026-05-12 Post Passage
Approved by the Governor - Chapter 393
2026-04-06 Senate
Favorable Report by Judicial Proceedings
2026-03-23 House
Returned Passed
2026-03-20 Senate
Third Reading Passed (44-0)
2026-03-18 Senate
Favorable Adopted
2026-03-18 Senate
Second Reading Passed
2026-03-10 House
Favorable with Amendments Report by Economic Matters
2026-02-28 House
Third Reading Passed (96-36)
2026-02-28 Senate
Referred Judicial Proceedings
2026-02-27 House
Favorable with Amendments { 833920/1 Adopted
2026-02-27 House
Second Reading Passed with Amendments
2026-02-06 House
Hearing canceled
2026-02-06 House
Hearing 2/11 at 2:30 p.m.
2026-01-28 House
Hearing 2/11 at 1:00 p.m.
2026-01-23 House
First Reading Economic Matters
Maryland General Assembly
Text - First - Business Regulation - Charitable Organizations - Audit and Review Thresholds
Maryland General Assembly
Vote - House - Committee - Economic Matters
Maryland General Assembly
Text - Third - Business Regulation - Charitable Organizations - Audit and Review Thresholds
Maryland General Assembly
Vote - Senate - Committee - Judicial Proceedings
Maryland General Assembly
Text - Chapter - Business Regulation - Charitable Organizations - Audit and Review Thresholds

Official Summary Text

Increasing the minimum gross income amounts from charitable contributions at which a charitable organization must include a certain audit or a certain review with a registration statement; increasing the amount of cash receipts from charitable contributions the Secretary of State may accept an affidavit attesting to under certain circumstances; increasing the maximum amount of gross income of a charitable organization at which the Secretary of State may require an audit or review from $750,000 to $1,000,000; etc.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0483*

HOUSE BILL 483
C2 6lr0743
CF SB 354
By: Delegate Wolek
Introduced and read first time: January 23, 2026
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 27, 2026

CHAPTER ______

AN ACT concerning 1

Business Regulation – Charitable Organizations – Audit and Review Thresholds 2

FOR the purpose of increasing the minimum gross income amounts from charitable 3
contributions at which a charitable organization must include a certain audit or a 4
certain review with the charitable organization’s registration statement; increasing 5
the amount of cash receipts from charitable contributions the Secretary of State may 6
accept an affidavit attesting to under certain circumstances; increasing the 7
maximum amount of gross income of a charitable organization at which the 8
Secretary of State may require an audit or review of the charitable organization; and 9
generally relating to audit and review thresholds for charitable organizations. 10

BY repealing and reenacting, without amendments, 11
Article – Business Regulation 12
Section 6–402(a) 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, with amendments, 16
Article – Business Regulation 17
Section 6–402(b)(7), (c)(1)(v), and (d) 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
2 HOUSE BILL 483

Article – Business Regulation 1

6–402. 2

(a) A registration statement shall be on the form that the Secretary of State 3
provides. 4

(b) Except as provided in subsection (c) of this section, the registration statement 5
shall contain or be accompanied by: 6

(7) (i) an audit by an independent certified public accountant if the 7
gross income from charitable contributions in the most recently completed fiscal year is at 8
least [$750,000] $1,000,000; or 9

(ii) a review by an independent certified public accountant if the 10
gross income from charitable contributions in the most recently completed fiscal year is at 11
least [$300,000] $500,000 $400,000 but less than [$750,000] $1,000,000; 12

(c) The Secretary of State ma y accept other documentation in place of any item 13
required under subsection (b) of this section, including, in place of the audit or review 14
required by subsection (b)(7) of this section, supporting documents indicating, and an 15
affidavit attesting, that: 16

(1) the charitable organization: 17

(v) has cash receipts from charitable contributions not exceeding 18
[$300,000] $500,000 $400,000 and amounting to 20% or less of the charitable 19
organization’s gross income during the immediately preceding fiscal year that are used for 20
program services or management and general expenses of the charitable organization, as 21
set forth under COMAR 01.02.04.04.A and C; 22

(d) The Secretary of State may require an audit or review if the amount of gross 23
income is less than [$750,000] $1,000,000. 24

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
1, 2026. 26