Nonprofit Audit Checklist

Governance & Oversight

□ Board of directors active
□ Board minutes documented
□ Bylaws current and followed
□ Conflicts of interest disclosed
□ Board committees functioning
□ Strategic plan in place
□ Mission statement clear
□ Policies documented
□ Succession planning done
□ Board training provided
□ Performance evaluated
□ Fiduciary duties met

Financial Management

□ Accounting system appropriate
□ Internal controls adequate
□ Segregation of duties proper
□ Budget prepared and monitored
□ Financial statements prepared
□ Monthly reconciliations done
□ Cash management effective
□ Investment policy followed
□ Expense approvals documented
□ Credit card controls adequate
□ Financial reports to board
□ Audit committee active

Tax Compliance

□ 501(c)(3) status current
□ Form 990 filed timely
□ State registrations current
□ Payroll taxes paid
□ 1099s issued properly
□ UBTI calculated correctly
□ Property tax exemptions filed
□ Sales tax exemptions used properly
□ Charitable solicitation permits
□ Lobbying limitations observed
□ Political activity prohibited
□ Private benefit avoided

Donor Management

□ Gift acceptance policy exists
□ Donor acknowledgments sent
□ Restricted funds tracked
□ Endowments managed properly
□ Pledges recorded correctly
□ In-kind donations valued
□ Grant compliance maintained
□ Donor privacy protected
□ Recognition appropriate
□ Stewardship program active
□ Database maintained
□ Planned giving program

Grant Management

□ Grant applications tracked
□ Grant agreements reviewed
□ Compliance requirements identified
□ Restricted funds segregated
□ Allowable costs documented
□ Time tracking accurate
□ Reports submitted timely
□ Audits conducted as required
□ Documentation retained
□ Indirect costs allocated properly
□ Sub-recipient monitoring done
□ Close-out procedures followed

Program Services

□ Programs align with mission
□ Program outcomes measured
□ Impact documented
□ Beneficiary data protected
□ Service delivery efficient
□ Quality standards maintained
□ Safety procedures followed
□ Volunteer management effective
□ Program evaluation conducted
□ Best practices implemented
□ Collaboration pursued
□ Innovation encouraged

Fundraising

□ Fundraising efficient
□ Costs reasonable
□ Professional fundraisers registered
□ Joint costs allocated properly
□ Special events compliant
□ Raffles/gaming licensed
□ Cause marketing appropriate
□ Corporate sponsorships documented
□ Online giving secure
□ Recurring gifts managed
□ Capital campaigns planned
□ Ethics maintained

Human Resources

□ Employee handbook current
□ Personnel files complete
□ I-9 forms compliant
□ Background checks done
□ Performance reviews conducted
□ Compensation reasonable
□ Benefits competitive
□ Payroll accurate
□ Time tracking proper
□ Training provided
□ Safety procedures followed
□ Volunteers screened

Risk Management

□ Insurance coverage adequate
□ Risk assessment performed
□ Internal controls tested
□ Fraud prevention active
□ Cybersecurity addressed
□ Business continuity planned
□ Crisis management ready
□ Legal compliance monitored
□ Contracts reviewed
□ Litigation managed
□ Reputation protected
□ Whistleblower policy exists

Transparency & Accountability

□ Annual report published
□ Financial information available
□ Form 990 accessible
□ Website current
□ Social media managed
□ Press releases accurate
□ Public records maintained
□ Complaints addressed
□ Feedback solicited
□ Stakeholder communication regular
□ Community engagement active
□ Impact reported

Asset Management

□ Fixed asset register maintained
□ Depreciation calculated properly
□ Asset tagging system used
□ Disposal procedures followed
□ Inventory counted regularly
□ Intellectual property protected
□ Licenses/permits current
□ Lease agreements managed
□ Facility maintenance planned
□ Security measures adequate
□ Technology assets tracked
□ Insurance claims filed

Compliance Monitoring

□ Compliance calendar maintained
□ Regulatory changes tracked
□ Training provided regularly
□ Violations corrected promptly
□ Best practices adopted
□ Industry standards followed
□ Accreditations maintained
□ Certifications current
□ External reviews conducted
□ Improvements implemented
□ Documentation retained
□ Success celebrated