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The price for an independent audit varies by region and nonprofit size. For large nonprofits in major urban areas, fees can exceed $20,000. Fees in the ballpark of $10,000 are common for small nonprofits.
An independent audit is an examination of the financial records, accounts, business transactions, accounting practices, and internal controls of a charitable nonprofit by an "independent" auditor.
Charitable nonprofits that expend $750,000 or more in federal funds in a year are subject to special audit requirements. Some contracts with state and local governments to provide services in the community may require the nonprofit to conduct an independent audit.
As an example, the state of California requires annual audits for all nonprofit organizations in the state that have a gross income of $2 million or more. The revenue thresholds differ depending on the state, so be sure to check out this state chart to see what the audit requirements are in your state.
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