The Internal Revenue Service (IRS) doesn’t require nonprofits to have independent audits, but that doesn’t mean your nonprofit never needs an audit. Some federal, state, and local government agencies require audits, as do some banks and foundations. Generally, the requirements relate to the nonprofit’s size or spending. When an Audit Is Required An independent audit […]
Tag: transparency
How to Handle Grants
Requests for transparency and accountability keep growing with the demands that contributions be used as intended. You need to track and report on segregated accounts, treating funds as separate entities with their own general ledgers. More than 20 years ago, the Financial Accounting Standards Board issued two standards that established reporting requirements for NPOs: FAS […]