We do not expect to collect state or Federal funds - just public fundraising funds.
Do we HAVE to be audited? or reviewed?
2007-02-28 07:47:43 · 3 answers · asked by hockeypuck 2 in Business & Finance ➔ Corporations
If you intend to file as a 501 (c)(3) with the IRS then, yes, absolutely. You don't have to hire some huge accounting firm but I would absolutely recommend a well established CPA.
An audit indicates that an outside source has proven your records to be correct; a review may only indicate that an accountant has looked at the information you provided to determine if the books meet acceptable accounting standards. It is less invasive, but also less persuasive, than an audit.
CAUTION: The IRS looks closely into salaries and expenses of NPO's. Hire a CPA and listen to their advice.
2007-02-28 07:56:54 · answer #1 · answered by merlins_new_apprentice 3 · 1⤊ 0⤋
If you are non profit why not get grants and such to help your cause? You should audit on a regular basis esp. if more than one person has access to the money you use for your org. to make sure all is there and being used as specified.
2007-02-28 15:53:36 · answer #2 · answered by Amberlyn4 3 · 1⤊ 0⤋
Who are you accountable TO?
I am pres. of a very small non-profit (gross less than $3k/year), and I asked our treasurer the same question. His reply: we are so small we fly under the RADAR of any govt. agency. Who would care?
We do post our financial statements on the web sites where the people who donate can see them. Other than that, why would you need to be audited?
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2007-02-28 15:54:07 · answer #3 · answered by tlbs101 7 · 0⤊ 1⤋