How Much Does a Nonprofit Audit Cost?

There is no universal price for a nonprofit audit.

Audit fees depend on the size, complexity, risk, and readiness of the organization, as well as the scope of the engagement.

As a general market reference, smaller nonprofit audits may start in the low five figures, while larger or more complex organizations can pay substantially more. Organizations with roughly $3 million to $50 million of annual operating activity commonly seeing audit fees in the low-to-mid five figures, but those ranges should be treated only as directional—not as a quote for a particular organization.

The better question is:

What will make our audit more—or less—complex?

What Drives the Cost of a Nonprofit Audit?

The largest driver of audit cost is usually the amount of professional time required to complete the engagement.

Larger and more complex organizations generally require more audit work, and therefore higher fees. The National Council of Nonprofits specifically notes that budget size, financial complexity, government grants, debt, risk, and timing can all affect audit cost.

Common pricing factors include:

  • annual revenue and transaction volume;

  • number of programs, locations, or entities;

  • number and complexity of grants;

  • restricted contributions;

  • federal funding;

  • whether a Single Audit is required;

  • investments, debt, leases, or other complex accounts;

  • accounting-system quality;

  • internal controls;

  • prior audit history;

  • financial statement preparation requirements;

  • timing and reporting deadlines; and

  • how prepared the organization is when the audit begins.

A $3 million nonprofit with clean accounting, few funding sources, strong reconciliations, and organized supporting documentation may require significantly less audit effort than another $3 million organization with multiple grants, federal awards, complex restrictions, weak reconciliations, and year-end cleanup still underway.

Revenue alone does not determine the fee.

Does a Single Audit Cost More?

Generally, yes.

A Single Audit requires additional compliance work related to federal awards beyond the procedures performed in a standard financial statement audit.

Organizations with significant federal funding should therefore tell prospective audit firms early about:

  • federal awards received and expended;

  • pass-through funding;

  • major federal programs;

  • prior Single Audits;

  • prior findings; and

  • the status of the Schedule of Expenditures of Federal Awards, or SEFA.

Related Resource: When Does a Nonprofit Need a Single Audit? →

Can Audit Readiness Reduce the Cost?

Potentially—and it can certainly reduce disruption.

Organizations that begin the audit with reconciled accounts, complete schedules, organized supporting documentation, and knowledgeable staff generally create a more efficient audit process.

Good preparation includes:

  • reconciling all balance-sheet accounts;

  • maintaining grant and contribution support;

  • completing the year-end close before fieldwork;

  • maintaining fixed-asset and debt schedules;

  • reconciling payroll;

  • preparing supporting schedules accurately;

  • organizing board minutes and significant agreements; and

  • responding to audit requests completely and promptly.

When auditors spend substantial time correcting accounting records, rebuilding schedules, following up on incomplete requests, or investigating unexplained differences, the engagement can require additional effort.

Related Resource: What Should Be on a Nonprofit Audit PBC List? →

Should a Nonprofit Choose the Lowest Audit Fee?

Price matters, particularly for mission-driven organizations.

But it should not be the only consideration.

Boards and finance teams should also evaluate:

  • nonprofit audit experience;

  • Single Audit experience when applicable;

  • staff continuity;

  • communication;

  • responsiveness;

  • project management;

  • capacity to meet deadlines;

  • understanding of nonprofit accounting standards; and

  • whether the proposed scope actually satisfies the organization's requirements.

A lower proposal can become expensive if the engagement experiences delays, unexpected additional billing, significant management rework, or a mismatch between the organization's needs and the firm's experience.

What Information Does an Audit Firm Need to Provide a Fee?

A prospective auditor can usually develop a much more reliable proposal when the nonprofit provides:

  • recent financial statements;

  • annual revenue and asset levels;

  • prior audited or reviewed financial statements;

  • the prior auditor's report, if applicable;

  • Form 990;

  • information about federal awards;

  • grant and contract activity;

  • number of bank and investment accounts;

  • debt and lease information;

  • organizational structure;

  • accounting system used;

  • required reporting deadline; and

  • any significant changes during the year.

For a first-year audit, providing several years of prior financial statements and tax returns can also help the CPA firm understand the organization and price the engagement appropriately.

The Bottom Line

The cost of a nonprofit audit is driven less by a single revenue number than by the amount of work, complexity, and audit risk involved.

Two organizations of the same size can have materially different audit fees because their funding, accounting systems, internal controls, reporting requirements, and audit readiness are different.

The most useful way to obtain an accurate fee is to provide a prospective audit firm with enough information to understand the scope before requesting a proposal.

How Bilotta & Company Can Help

Bilotta & Company, CPAs, LLC provides financial statement audits, reviews, and Single Audits for nonprofit organizations.

Our proposal process is designed to understand the organization's requirements, funding environment, financial reporting complexity, timeline, and readiness before defining the engagement and fee.

If your nonprofit is approaching an audit requirement or comparing audit firms, we can help determine the appropriate scope and provide a proposal based on your organization's specific circumstances.

Explore Nonprofit Audit & Assurance Services →

Visit the Nonprofit Financial Resource Center →

This article is provided for general educational purposes. Audit fees and engagement requirements vary significantly based on an organization's individual facts and circumstances.