Lets do a quick calculation. A "full audit' of a nonprofit organization by a CPA (only CPAs can do full audits) would cost between $3000 and $6000 for a small organization. $3000 is 6% of $49,999.
And this doesn't count the time of the nonprofit staff or the volunteer board treasurer to prepare for and participate in the audit. The simple reason for not requiring a full audit for under $50,000 is that it just doesn't make economic sense. A related note. In general, nonprofit organizations is only required by the IRS to have a formal audit if their total revenue is over $350,000 (I think this is also a State of MN rule) sheldon ................................ Sheldon Mains Technology solutions for nonprofit organizations. 612-618-7149, [EMAIL PROTECTED] http://sheldonmains.efoliomn1.com/ Seward Neighborhood, Minneapolis, Minnesota REMINDERS: 1. Be civil! Please read the NEW RULES at http://www.e-democracy.org/rules. If you think a member is in violation, contact the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A Civil City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[email protected] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
