Most of the nonprofits I have worked with over the last three, or four years failed their audit. Almost every single one was missing the same few things. If you want to pass your next audit, here is exactly what auditors look for. Keep Your Paper Trail Auditors want proof. They will ask for things like: Receipts for every purchase Bills and invoices Backup for every journal entry you make Timestamps showing when work was done or approved Board meeting minutes If you cannot sh

Board members are leaving nonprofits right now over bad audits. Funders are walking away. Grants are being denied. All because of one thing. Restricted funds. And the scary part? Most nonprofit leaders do not even know their restricted fund tracking is broken until the auditor tells them. By then it is too late. 48% of nonprofit fraud cases are linked to weak internal controls. And mismanaged restricted funds are the number one audit finding auditors see year after year. (Sou