How To Conduct a Nonprofit Audit

Use the Nonprofit Audit Checklist as a step-by-step guide to preparing for and responding to an audit of your nonprofit organization.

Looking to build trust with current and potential donors? Transparency is key!

It’s true – being transparent about your finances, policies, staff, impact, and more is not only ethical, but it also helps you establish long-lasting relationships with donors, granting institutions, and community partners.

While there are many ways to be transparent as an organization, conducting a nonprofit audit is one of the best (and sometimes required) ways to do so. Knowing where to begin, however, can be difficult – download your free Nonprofit Audit Checklist today to keep yourself on track!


Running A Nonprofit Audit

Just the word ‘audit’ is enough to make many people at least a little nervous – but it doesn’t have to be scary! Audits enable businesses and organizations, including nonprofits, to improve internal systems and processes, as well as build trust with stakeholders and the public.

In many cases, audits are required. Be sure to check your local laws and regulations to see if your nonprofit must submit an audit or not – here’s a great resource for those in the U.S. But, even if an audit isn’t required for your organization, they still hold many benefits. 

First things first, nonprofit audits are one of the most important things you can do to improve the transparency of your organization. Why is transparency important? It shows that you are an ethical, honest organization, and it can have a lasting positive impact on your donors, community, granting organizations, and even staff and board members.

And, speaking of board members, they can be a big help with an audit. One of their responsibilities can – and should – be serving on an audit committee that helps the process run smoothly as well as assists in making any recommended changes following the completion of the audit.

A nonprofit audit may consist of a review of your policies, procedures, and several bookkeeping and financial statements. This gives you the chance to receive an outsider’s perspective on ways you can improve your organization and the way it is run.

But where do you begin?

First things first, download and review the free Nonprofit Audit Checklist above. Then, assemble the audit committee we mentioned above, which can consist of staff, board members, and advisors, and choose a point person. Next, you’ll need to select an auditor – preferably one that specializes in nonprofits – if you do not have one already.

From there, simply follow the rest of the checklist, sticking to the timelines provided, to keep yourself and your audit committee informed and on track. We’ve even broken the process down into different stages as well as types of audits!

Download the Nonprofit Audit Checklist today and get started on improving the transparency of your organization.

About Donorbox

Donorbox aims to provide nonprofits with simple, effective tools to manage their fundraising activities, form better relationships with their donors, and build sustainable growth for their organization.

As one of the industry’s top fundraising platforms, Donorbox offers a variety of products, including donate buttons, embedded fundraising forms, custom fundraising pages, Text-to-Give, Peer-to-Peer, crowdfunding campaigns & more.

Donorbox is free to sign up, with no contracts and no montly fees. Along with the lowest processing fees in the industry, we have all the tools you'll ever need to get your mission from start to sustainability to success!