In this post, we will continue our discussion about regulatory expectations and your ability to keep your organization in a proactive mode.

Although it may have been a long time ago, your non-profit organization received its IRS determination letter. Requisite in your role as a charitable organization -- serving the community well-being -- your fund-raising (income) must be directed toward your charitable mission (expenses).

The greater the percentage of income directly devoted to the specific mission of the charity is all the better. How do your administrative expenses and overhead compare with the funds directly supporting the activities of your mission? Have you taken a look at those numbers? Do you have a process by which you track those numbers?

As we have predicted, these types of internal reviews are going to be increasingly important as the IRS steps up its reviews of Form 990 filings.

If you need an internal audit process, CEGA can help you.

Excellence in the non-profit sector demands that charitable organizations demonstrate that they are indeed charitable.