Audited Financials for 501(c)(3)

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

Reply to
Dick Adams
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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.

Reply to
Alan

I don't believe that the IRS requires audited financial statements from a

501(c)3.
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.

Reply to
NPOguy

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