Not-for-Profit Audit Services

Build Trust and Ensure Compliance

Nonprofit audits are crucial for keeping your organization transparent and protecting your tax-exempt status. Our team has over 20 years of experience in non-profit and single audit engagements.

Audit Financial Statements: Ensure your financials meet all industry standards and regulatory requirements.
Ensure Tax-Exempt Compliance: Stay compliant with IRS regulations and protect your tax-exempt status from penalties.
Review and File IRS Form 990: Ensure accurate and timely filing of IRS Form 990 to meet federal requirements.
Comply With Federal Requirements: Ensure timely uploads of single audit financials to the Federal Audit Clearinghouse.
Reporting to Board Members: After the attest services are complete, a team member will present the review or audit to your board members and answer any questions they may have.
Industry Updates: Ensure the latest industry changes are communicated to your organization’s board. As members of AICPA and the state associations of CPAs for Montana, Hawaii, and Utah, we have access to the most up-to-date information and industry standards.

Call Us

(385) 552-5962

501c3 Not-for-Profit (Non-Profit) Audit Compliance

Running a not-for-profit requires navigating complex financial and regulatory landscapes, with transparency as a top priority. A 501(c)(3) audit ensures compliance with IRS regulations, maintains donor trust, and upholds financial integrity. More than just a requirement, a well-conducted audit safeguards your mission, confirming that every dollar is used efficiently and appropriately.

Our team specializes in serving not-for-profits and follows the highest standards set by the American Institute of Certified Public Accountants (AICPA). We understand the unique challenges of maintaining tax-exempt status, managing restricted funds, and meeting grant compliance. With decades of experience in the sector, Linked Accounting provides thorough audits tailored to your organization’s needs.

Why 501c3 Audits Matter

For not-for-profits, financial health and compliance are critical. A thorough audit conducted by a CPA offers several key benefits:

Audits provide assurance that your financial statements are accurate and that donor funds, especially restricted contributions, are being properly managed and reported.
Regular audits help ensure your organization remains in good standing with the IRS, particularly regarding your tax-exempt status and the proper filing of Form 990, the annual IRS filing required for tax-exempt organizations.
Many grants and large donations require audits to verify financial stability. An audit shows that your organization meets the necessary accounting and regulatory standards to qualify for continued support.

What’s Involved in a Non-Profit Audit

A not-for-profit audit is a detailed, independent review of your financial records, conducted in accordance with Generally Accepted Auditing Standards (GAAS) as set by the AICPA. The audit process typically includes:

A review of key financial documents, including the balance sheet, income statement, and cash flow statement, to ensure accuracy and adherence to Generally Accepted Accounting Principles (GAAP), the standard guidelines for financial reporting.
An assessment of internal controls, focusing on processes like cash handling, disbursements, and segregation of duties, to help prevent fraud and ensure financial responsibility.
A review of your adherence to 501(c)(3) guidelines and IRS requirements, ensuring proper management of restricted funds, grants, and donations.

More Than Just Compliance: How Audits Improve Operations

Audits provide more than just compliance—they offer opportunities to improve your organization’s financial health:

Auditors can detect inefficiencies or potential areas of risk in your financial processes, helping you mitigate issues before they become costly problems.
Audits offer insights into how you manage and allocate your resources, helping you find ways to improve operational efficiency and maximize impact.
Recommendations from an audit can enhance the oversight and governance of your financial practices, making your organization more resilient and sustainable over the long term.

How Linked Accounting Can Help

As non-profit auditor, we provide thorough, consistent audits ensuring compliance with IRS regulations and strengthening financial practices. Our team’s commitment to zero turnover ensures you’ll work with the same dedicated experts year after year, allowing us to build a deep understanding of your organization.

With offices in Utah, Montana, and Hawaii, we serve clients nationwide. We help not-for-profits of all sizes meet donor and grantor expectations while safeguarding financial health.

Frequently Asked Questions

What does a non profit audit consist of?

A non-profit audit consists of a thorough, independent examination of the organization’s financial statements by a Certified Public Accountant (CPA). It includes reviewing the accuracy of financial records, evaluating internal controls, verifying compliance with accounting standards, and assessing whether the organization is following IRS regulations. The audit typically results in a report that confirms whether the financial statements are free of material misstatements and are in accordance with Generally Accepted Accounting Principles (GAAP).

What is the difference between a 990 and an audit?

Form 990 is an annual tax return that non-profits file with the IRS, providing information about their financial activities, governance, and compliance. It is self-reported by the organization. An audit, on the other hand, is an independent examination of a non-profit’s financial records by a CPA to verify accuracy and ensure compliance with accounting standards. While a 990 is required by the IRS, an audit is often required by donors or grantors.

Does the IRS audit small nonprofits?

Yes, the IRS can audit small nonprofits. All tax-exempt organizations, regardless of size, are subject to audits. The IRS may audit a nonprofit for reasons such as inconsistent or incomplete filings, failure to file required forms (like Form 990), excessive executive compensation, unreported unrelated business income, or tips/complaints regarding misuse of funds. While audits are less common for small nonprofits, compliance with IRS regulations is still required, and maintaining proper financial records is essential.

How far back can the IRS audit a 501c3?

The IRS can generally audit a 501(c)(3) nonprofit for up to three years from the date a tax return (Form 990) was filed. However, if the IRS identifies substantial errors or evidence of fraud, they can audit up to six years back. In cases of willful tax fraud or failure to file required returns, there is no statute of limitations, and the IRS can audit at any time.

Who bears the cost of an audit?

The nonprofit organization undergoing the audit is responsible for the cost. This includes paying for the services of an independent Certified Public Accountant (CPA) or auditing firm to conduct the audit. The cost may vary depending on the size and complexity of the organization. Many nonprofits budget for audits as part of their financial planning, especially if required by donors, grantors, or regulatory agencies.

Do small charities need to be audited?

Small charities are not typically required to undergo audits unless mandated by state law, specific donors, or grantors. However, even when not required, some small charities choose to have an audit for transparency and to build trust with donors. It’s important to check state regulations and any specific funding requirements to determine if an audit is necessary for your organization.

What is the difference between a nonprofit audit and a review?

A nonprofit audit is a thorough, independent examination of an organization’s financial statements, performed by a Certified Public Accountant (CPA). It provides the highest level of assurance, verifying the accuracy of financial reports and compliance with accounting standards.

A review, on the other hand, is less comprehensive. It involves limited analysis of the financial statements, where the CPA performs basic checks and inquiries but does not perform the in-depth testing found in an audit. A review provides moderate assurance but does not confirm accuracy at the same level as an audit.

How often should a nonprofit be audited?

Nonprofits are typically audited annually, especially if required by state law, donors, or grantors. Even if not mandated, many larger organizations choose to undergo an annual audit to ensure financial transparency and maintain donor confidence. Smaller nonprofits may not require yearly audits, but regular reviews or audits every few years can help maintain strong financial practices.

How much can you donate to charity without being audited?

There is no specific donation amount that automatically triggers an IRS audit. However, if your charitable contributions are unusually large compared to your income, or if they exceed 60% of your adjusted gross income (AGI), it may attract IRS attention. To ensure compliance, always keep proper documentation of your donations, such as receipts or acknowledgment letters from the charity, and report them accurately on your tax return.

Are nonprofit audits public record?

Nonprofit audits are not automatically public record. However, many nonprofits voluntarily make their audits available to the public, especially if required by donors, grantors, or certain state regulations. While the audit itself may not be public, financial information reported on IRS Form 990 is publicly accessible, and some nonprofits include their audit report with the 990 filing.

Areas of Expertise

Additional Services

Bank Consulting

Bank consulting services help businesses and non-profits with loan applications, financial planning, and bank ratio monitoring to secure better lending terms.

Learn More

Month-end Bookkeeping

Bookkeeping is the process of recording and organizing a business’s financial transactions, ensuring accurate and up-to-date records for financial management and compliance.

Learn More

CFO Consulting

CFO consulting provides businesses with expert financial leadership and strategic guidance, helping with tasks such as budgeting, cash flow management, and financial planning without the need for a full-time CFO.

Learn More

Employee Benefits 401k Audit

An Employee Benefits 401(k) Audit is an independent review of a company’s 401(k) plan to ensure compliance with ERISA regulations, accuracy in financial statements, and proper management of participant contributions.

Learn More

Tax Compliance

Tax compliance is the process of adhering to tax laws by accurately reporting income, filing returns on time, and paying the required taxes to avoid penalties or legal consequences.

Learn More

Tax Planning and Mitigation

Tax planning and mitigation involve using strategies to legally reduce tax liabilities and optimize financial outcomes while ensuring compliance with tax laws.

Learn More

Nonprofit Auditors

Laura Weston

Partner

Laura Weston, CPA, brings over 20 years of audit and business advisory experience, including roles as a controller for both a manufacturing and a real estate investment company. She specializes in serving clients across various industries, including real estate, manufacturing, franchising, ERISA, and not-for-profit organizations. Laura also provides litigation support, helps strengthen internal control policies and procedures, and conducts due diligence for acquisitions and sales. Laura holds a Master’s degree in Business Administration from Utah State University and is a member of the American Institute of Certified Public Accountants. She is licensed as a CPA in both Utah and Hawaii. Outside of work, Laura enjoys traveling and spending time outdoors with her husband and two children.

Non-Profit Audit Specialists Dedicated to Your Mission

With extensive experience in this sector, we ensure that your financial statements meet compliance standards while maintaining the highest level of transparency. Our approach addresses common nonprofit-specific challenges like grant compliance, restricted fund management, and operational efficiencies, helping you demonstrate accountability to your donors and stakeholders.

Grant Compliance: Verifying adherence to grant conditions and ensuring proper use of funds.
Restricted Fund Management: Ensuring accurate tracking and usage of donor-restricted funds.
Operational Efficiency: Identifying ways to streamline financial operations for better outcomes.

We understand the nuances of nonprofit accounting, offering in-depth audit services that ensure your organization is not only compliant but also positioned to thrive.

Planning Center

Additional Nonprofit Resources

Get In Touch

Not-for-Profit Audit Services

Build Trust and Ensure Compliance

Call Us

Email us

501c3 Not-for-Profit (Non-Profit) Audit Compliance

Why 501c3 Audits Matter

What’s Involved in a Non-Profit Audit

More Than Just Compliance: How Audits Improve Operations

How Linked Accounting Can Help

Frequently Asked Questions

Areas of Expertise

Additional Services

Bank Consulting

Month-end Bookkeeping

CFO Consulting

Employee Benefits 401k Audit

Tax Compliance

Tax Planning and Mitigation

Nonprofit Auditors

Laura Weston

Partner

Non-Profit Audit Specialists Dedicated to Your Mission

Planning Center

Additional Nonprofit Resources

Enhancing Donor Confidence with Transparent Financial Reporting

Strengthening Internal Controls to Protect Against Fraud in Nonprofits

Best Practices for IRS Form 990 Reporting in Nonprofits

How to Maintain Nonprofit Tax-Exempt Status

Single Audits for Federal Grants

The Role of Board Governance in Nonprofit Financial Oversight

Company Hours

Utah Location

Hawaii Location

Montana Location

Planning Center