Dear Governance Matters,
I would like to have an independent audit of my 501 (c) 3. Do you have any recommendations?
First, did your organization have more than $250,000 in its operating budget this past year? If not, federal law (the IRS) does not require you to have an independent audit, but only requires that a CPA review your books and give an opinion as to your financial records.
If you would still like to have a full audit (many funders ask for one), you need to find an auditor in your city who does nonprofit audits. You might try the Internet, or call a few other nonprofit organizations in your area to ask them the name of their auditor. Or, you could always try the yellow pages in your city. The most important questions to ask the CPA are:
- Do you conduct audits for nonprofit organizations?
- Do you conduct audits for organizations of our size?
- What would be the total cost for an audit by your company?
Governance Matters "Ask the Experts"