What are Audit Requirements for Not-For-Profits?

The growth of a not-for-profit organization requires a commitment to fulfilling certain obligations. One of those obligations is conducting a regular not-for-profit audit. There are different audit requirements based on annual revenue, state, and methods of incorporation.

Constitution Requirements

Sometimes, the Not-for-profit bylaws might require you to conduct annual or regular financial statement audits for the grantors and stakeholders.

State requirements

Not-for-profit receiving above $500,000 in a fiscal year must conduct a financial statement audit. However, the revenue cap varies for different states. So, you must confirm state requirements or consult a CPA firm for guidance.

Federal requirements

Not-for-profit organizations that receive funding that exceeds $750,000 from the federal government as contracts or direct donations must conduct a regular financial statement audit.

Read more here.

Grant application requirements

Some grantors require a financial statement audit report to assess the organization’s credibility. The outcome of the audit will determine if they will commit or not.


Note: An independent CPA must conduct the financial statement audit for transparency and compliance with accounting standards. Contact MetwallyCPA to audit your non-profit organization.


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