Nonprofit audit services
Audit and assurance built for nonprofits and NGOs
Nonprofit organisations, charitable trusts, and registered societies operate under a compliance framework that is fundamentally different from commercial businesses. Section 12A registration, 80G certification, FCRA compliance for foreign contributions, Form 10B filing, income accumulation limits, and mandatory application of income all create audit obligations that require a specialist chartered accountant who understands the legal structure of charitable entities.
Cred Books provides nonprofit audit services for registered trusts, societies, Section 8 companies, religious organisations, and NGOs receiving domestic or foreign funding. We understand the compliance requirements that determine whether your charitable exemptions remain intact and whether your 80G approval continues to benefit your donors. Our nonprofit accounting services ensure audit-ready records throughout the year.
What does a nonprofit audit actually cover?
An NGO audit covers verification that income is applied towards charitable objects in the proportion required under the Income Tax Act, that accumulations do not exceed permissible limits without Board resolution and Form 9A, that donor receipts are correctly recorded and 80G receipts issued within time limits, that FCRA inflows are received only in the designated FCRA account and utilised for permitted purposes, and that administrative and programme expenditure ratios are accurately reported.
We also verify that the trust deed or memorandum objects align with the actual activities, which is a condition for maintaining tax exemption. Our nonprofit accounting team maintains the books in the format required for annual filings throughout the year.
Why nonprofits need specialist audit services
Exemption And Approval Protection
Section 12A and 80G approvals can be cancelled for non-compliance. A specialist NGO audit verifies that income application, accumulation limits, and donor receipt issuance comply with the conditions of your exemption certificate.
FCRA Compliance Verification
Organisations receiving foreign contributions must spend at least 80% on stated objects, receive all FCRA funds in the designated bank account, and file annual returns. Our FCRA audit confirms all these conditions are met before the filing deadline.
Grant Utilisation Reporting
Most institutional grants require audited utilisation certificates. Our nonprofit audit provides grant-specific expenditure verification, auditor certification of utilisation, and the financial report format required by the grant-making organisation.
Our nonprofit audit and assurance services
Non-Profit Statutory Audit
Statutory audit for Section 8 companies, registered societies, and charitable trusts under the applicable law with emphasis on income application and object compliance.
Section 12A Audit And Form 10B
Form 10B preparation and filing for charitable trusts and institutions claiming exemption under Sections 11 and 12. Covers income application, accumulation, and anonymous donation reporting.
FCRA Audit For NGOs
Annual FCRA audit covering designated account compliance, utilisation certificates, administrative expenditure ratio, and FC-4 annual return preparation for MHA filing.
80G Compliance Audit
Verification that 80G certificate conditions are met, donor receipts are issued correctly, and the register of donations is maintained in the format required for donor deduction claims.
Grant Utilisation Audit
Grant-specific audited utilisation statements for institutional funders, CSR donors, government grant agencies, and international funding organisations requiring auditor certification.
Society And Trust Internal Audit
Periodic internal audit for larger NGOs covering procurement, cash handling, project expenditure accuracy, and staff payroll compliance to strengthen financial controls.
Nonprofit audit compliance areas we cover
NGO Audit Services
Audit for NGOs of all sizes covering income application, accumulation, and annual return compliance with the Income Tax Act.
Trust Audit Services
Charitable trust audit covering trust deed compliance, income distribution to objects, and Section 11 exemption conditions.
FCRA Audit
Foreign contribution audit for organisations registered under FCRA, verifying designated account usage, utilisation ratios, and annual return accuracy.
80G Compliance Audit
Verification of 80G conditions, donor receipt issuance, and donation register maintenance for organisations with Section 80G approval.
Section 12A Audit
Form 10B preparation and compliance verification for charitable organisations claiming income tax exemption under Sections 11 and 12.
Charitable Trust Audit
Audit of public and private charitable trusts covering settlor conditions, trustee transactions, and beneficiary expenditure documentation.
Non-Profit Statutory Audit
Companies Act statutory audit for Section 8 companies and society-level audit under the Societies Registration Act for registered societies.
Society Audit Services
Registered society audit covering membership fee accounting, project expenditure, governing body resolution compliance, and annual report preparation.
Grant Utilisation Audit
Project-level audited statements for institutional funders, government schemes, and international donor organisations requiring auditor certification.
Nonprofit audit services: what to expect from Cred Books
Income Application And Accumulation Review
We verify that at least 85% of income from charitable sources is applied to the stated objects during the year, and that any accumulation is covered by a valid Board resolution and Form 9A.
FCRA Account And Utilisation Verification
Foreign contributions are traced from the designated FCRA bank account to project expenditure. Administrative expense ratio is calculated and the utilisation certificate is prepared for each donor.
Donor Receipt And 80G Register Review
All 80G receipts are traced against the donor register, verified for format compliance, and cross-checked with the donation amounts reported in the annual income tax return.
Annual Filing And Form 10B Preparation
Form 10B is prepared, reviewed with the trust's governing body, and filed along with the income tax return within the statutory deadline to avoid loss of exemption for the year.
Software We Work With
Why nonprofits choose Cred Books for audit services
Deep Charitable Sector Knowledge
We understand the difference between accumulation with Form 9A protection and unprotected accumulation, FCRA administrative expense limits, and the specific income application rules under Section 11.
FCRA And 80G Compliance Specialists
Our team has experience with FC-4 returns, designated account verification, and the documentation required for both FCRA renewal and 80G certificate maintenance.
Grant Audit Formats For All Major Funders
We prepare utilisation certificates and audited statements in the specific format required by CSR donors, government schemes, international NGOs, and bilateral funding organisations.
Year-Round Accounting Integration
Our nonprofit accounting services keep your project-level books clean throughout the year so the annual audit is a verification exercise rather than a reconstruction of records.
Timely Form 10B And Annual Return Filing
We track filing deadlines for all our nonprofit clients and ensure Form 10B, FC-4, and income tax returns are filed before the due date, protecting your exemption status for the year.
Fixed Scope And Transparent Fees
Audit scope, grant certificates required, and fees are agreed before we begin. No billing surprises and no additional charges for FCRA utilisation certificates within the agreed engagement.
How Our Nonprofit Audit Process Works
Scope And Registration Review
We review your trust deed or memorandum, registration certificates, previous year returns, FCRA registration, and grant agreements before agreeing the audit scope.
Financial Data Collection
Receipts and payment accounts, income and expenditure statements, bank statements, donor registers, and project expenditure records are collected and organised by programme.
Compliance And Object Verification
Income application ratios, FCRA utilisation, donor receipt issuance, and accumulation are all verified against the specific conditions of your exemption certificate.
Management Discussion
Findings and adjustments are discussed with the trustees or governing body before the audit report and Form 10B are finalised.
Filing And Certificate Issuance
Form 10B, FC-4, income tax return, and all grant utilisation certificates are filed or delivered within the agreed deadline.
Frequently Asked Questions
Get expert nonprofit audit services from Cred Books
FCRA compliance, Form 10B, 80G audits, grant utilisation certificates, and statutory audits for NGOs and trusts across India. Talk to our team today.
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