Managing your funding is crucial to your organization’s success, and it’s also vital for transparency and accountability. Foundations, donors and the IRS will expect financial validity for your processes in order to verify your organization’s legitimacy. The IRS does not require nonprofits to obtain audits, but federal and state government agencies do depending on your nonprofit’s size or spending.

An independent audit is not the same as an IRS audit. Rather, it is an examination of your accounting records and financial statements by an independent auditor—normally, a certified professional accountant (CPA). The auditor is an independent professional hired and paid by your nonprofit. Our partner auditors will do an independent investigation to test the accuracy of your accounting records and internal controls. At the conclusion of the audit, the auditor issues a report in the form of a letter stating whether, in the auditor’s professional judgment, your accounting records and year-end financial statements fairly represent your nonprofit’s financial position according to generally accepted accounting principles (GAAP). The auditor’s letter is attached to the front of your financial statements. A clean bill of health from an auditor shows the world that you’re keeping your books in a responsible manner.