Proposal for the Auditing of Charitable Nonprofit Organizations
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American public charities received over $1.59 trillion in revenue in 20ll. Despite receiving funding equivalent to 10% of US GDP, the nonprofit sector still has finite resources, leading to fierce competition among the organizations for donations and volunteers. This competition necessitates the need for verifiable comparability between nonprofits for potential donors and fraud prevention. My solution for these unresolved needs is the implementation of a program to require the external audits of larger non profits with the audited financials being made public and with the internal controls of nonprofit organizations (NPOs) being developed and improved. The organization best suited to implement this plan is the IRS. The IRS will need authorization to expand its responsibilities/power to mandate audits for NPOS. These responsibilities include the mandating of audits, the facilitation of public access to audit findings, and the potential revocation of tax-exempt status for NPOs not in compliance.