Millan & Company helps your nonprofit meet its fiduciary responsibility to make sure contributions are handled in the right way. While not all charitable nonprofits are required to conduct an independent audit, the following are circumstances that may require one.
Reasons for a Nonprofit Audit
- Federal, state, and local governments may request a copy of the organization’s audited financial statements.
- Charitable nonprofits that expend $500,000 or more in federal funds in a year are subject to special audit requirements. (The $500,000 limit is current law, but will be raised to $750,000 in 2015.)
- Some contracts with state and local governments to provide services in the community may require the nonprofit to conduct an independent audit.
- Many state laws require that charitable nonprofits submit a copy of their audited financial statements when they register with the state for charitable solicitation/fundraising purposes.
- Private foundations may request that a nonprofit submit a copy of the nonprofit’s most recent audited financial statements in conjunction with submitting a grant proposal.
- Some banks may require a nonprofit to have an audit as a condition of receiving a loan.
Contact us to find out whether your organization may require a nonprofit audit.