Audited Financials for 501(c)(3)


D

Dick Adams

Under what circumstances does the IRS require audited financials
from 501(c)(3)'s?

Does any federal agency require audited financials from 501(c)(3)'s?

Dick
 
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A

Alan

Under what circumstances does the IRS require audited financials
from 501(c)(3)'s?

Does any federal agency require audited financials from 501(c)(3)'s?

Dick
I don't believe there is anything in tax law that requires the charity
to have audited financials. If the charity accepts federal funds under
some program, it is quite possible that the federal law that set up that
funding requires audited financials... but that's not the IRS. It is
quite possible that the state in which the charity was
registered/incorporated requires audited financials... but that's not
the IRS.

All that being said, without audited financials it can be quite hard to
obtain donations.... but that's another story.
 
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N

NPOguy

Dick said:
Under what circumstances does the IRS require audited financials
from 501(c)(3)'s?
I don't believe that the IRS requires audited financial statements from a
501(c)3.
Does any federal agency require audited financials from 501(c)(3)'s?
501(c)3 nonprofits that expend more than $500,000 in federal awards during a
fiscal year are required to have an independent financial audit. The
threshold used to be $300,000 but is now $500,000. It's called something
like an "A-133" audit(?).

I am not an accountant or any kind of expert in this area, but if you do a
Google search for "A-133 $500,000" (without the quotes), you'll find lots of
hits that explains this in terms that others here will probably understand.
 

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