Non profit organizations are often required to get their financial statements audited to enhance their creditability. Most donors to charities often have reservations as to whether the organization is actually doing what they say they are and that the money donated is being used to help the cause that the donor wants to support. There are two major concerns that someone who donates may have. The first is that the money is not being stolen. The second issue is how much of the money being raised by the organization is going to the cause and how much is going to fundraising and management.

The way that non profit organizations answer these questions often depends upon their size. In the United States the filings with the IRS can often begin to answer these questions. In fact filed non profit returns ( Form 990 ) can be found online and are a matter of public record. This means the organization has a responsibility to disclose their books and certainly their 990 tax return. This transparency can be reassuring to know that information is being made available to the public.

Though this may be helpful with small entities it is usually not enough for organizations that are raising in excess of $ 250,000. In fact sometimes donors that are giving what they consider to be a significant donation can predicate it on being able to get audited financial statements.

For the benefit of non profits I have made available free information on non profit organization audited financial statements can be done for less. To begin with I would suggest that they consider the timing of the audit so they can do it during a time period that the accountant is not overtaxed. In addition recent changes in CPA mobility means that a local CPA may not be the only choice.

Please feel free to post comments with questions and I will do my best to answer them.