Not-For-Profit, charitable organisations benefit from independent audits in multiple ways, including improving performance and meeting any compliance requirements.
Auditing and statutory compliance requirements for your Not-For-Profit may vary depending on the type and size of your organisation.
Even if state or federal legal requirements for audits do not apply to your charitable Non-Profit, there are two main reasons why your charitable nonprofit may want to seek an independent audit.
One primary reason is to demonstrate your charitable organisation’s commitment to financial transparency.
Another reason to conduct an audit even when not required by law is that many public and private foundations or funders require charitable Non-Profits to submit audited financial statements or conduct an audit in order to be eligible for funding.