Even if your not-for-profit isn't legally required to obtain independent audits, such audits can enhance financial transparency, increase accountability and help you build trust with your stakeholders.
It may be tempting to try to save money and perform your nonprofit's accounting tasks internally. But if your staff isn't experienced and properly trained, mistakes are likely to occur — with potentially serious repercussions.
Only some not-for-profit organizations are required to conduct independent annual audits.
You may know the difference between nonprofit and for-profit accounting systems, but do your newest employees and board members?
If you're a leader of a private foundation, you're probably aware of the prohibition against self-dealing transactions between foundations and "disqualified persons."
Do your not-for-profit's accounting processes work perfectly — with no errors, delays or other inefficiencies? If yours is like most organizations, probably not.