Effective Audit Committee Guide

September 2016

Nonprofit organizations face an increasingly challenging economic and regulatory environment. As giving practices continue to evolve, nonprofits often find themselves doing more with less. Adjusting to these new realities means that proper financial management is more important than ever. If mismanaged, the various tax and accounting considerations that are part of the annual nonprofit life cycle can become obstacles to an organization’s mission and goals. Audit committees are vital to the health of any nonprofit, be it large or small. Audit committee and its individual members are crucial partners in the safeguarding of integrity, purpose, and ultimately, success.

BDO’s Nonprofit & Education Practice and the BDO Institute for Nonprofit Excellence℠ have long been dedicated to client service, and to furthering the resources and discourse surrounding nonprofit financial management. With this guide, Effective Audit Committees for Nonprofit Organizations, BDO’s nonprofit professionals offer a comprehensive overview of the responsibilities of an audit committee, along with advice and tools to help organizations build or improve their own audit committees. We encourage you to refer to this guide frequently as you consider your organization’s financial needs and progress.