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Why You May Need an Audit – and What You Should Get Instead

The Charity CFO

Does the idea of a financial audit on your nonprofit leave you feeling nervous? For many nonprofits, a full financial audit can help ensure the accuracy of their financial recordkeeping. Luckily, not all financial situations require an audit. In some cases, a state may have no requirement for an audit.

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When Does Your Nonprofit Need an Audit?

The Charity CFO

Contrary to what many people envision, a nonprofit audit doesn’t usually start with a letter from the IRS. Instead, an independent nonprofit audit is something you choose to build trust in your nonprofit organization. An audit can be a critical step for a growing nonprofit that needs to raise increasing amounts of funds.

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Independent audit requirements for a nonprofit

The Charity CFO

The word audit can invoke instant fear and dread. Whether it’s an IRS audit, external audit, or even an internal audit, the process can feel burdensome and worrying. Contrary to popular belief, most audits are not conducted to detect a problem. Should My Nonprofit Obtain an Independent Audit?

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Nonprofit Compliance Requirements

The Charity CFO

Compliance is the act of assuring the public that nonprofit organizations are obeying the appropriate laws, contracts and commitments that they enter into as a nonprofit organization. Depending on your state, funding and other factors, your compliance and audit requirements might vary. What Does Nonprofit Compliance Mean?

Law 52
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Best Practices when Accounting for Grants

The Charity CFO

Because accurate nonprofit accounting can help with reporting and auditing requirements, and ensure that the funds are being used in accordance with the grantor’s wishes. Doing this ensures that you can demonstrate compliance with grant requirements and provides a clear audit trail for any future reviews. Conduct regular audits.

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[ASK AN EXPERT] How to be Appropriately Kind to In-Kind Donors?

Bloomerang

Like the technology upgrades and professional services you mention. Like the guitarist who donates their services for an event where you wouldn’t otherwise have hired a musician. And there is a distinction between gifts of product and gifts of services. This will assure you don’t get into the business of valuing the donations.

Finance 105
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How to Develop a Successful Nonprofit Fundraising Strategy

Bloomerang

Implement these additional strategies to make donating as easy as possible: Audit your website. Consider collecting thank-you messages from those who’ve benefited from your organization’s services in the past to show donors exactly who they’re helping. Keep donors informed about the progress you’ve made with your projects and programs.