Audit Report for Fundraising
Monetary Limit -
As per the Taxation Laws Amendment Act, 2006, wef. 1st April 2006, it is mandatory for every NGO to get its account audited where its income exceeds the minimum exemption limit.
The implication of section 13(3) is extensive and therefore it may not be possible on the part of the Auditor to make independent inquiries. Therefore the Auditor before certifying the annexure to Form 10B should ensure and also clearly state the scope of his work and the responsibilities owned. It is important that the Auditor should mention in its report that the details of the persons covered under section 13(3) were provided by the Trustees of the Trust or the functionaries of the organizations.
Income Tax Exemption Under 12A -
Section 12A states two conditions for availing the exemption available under the Act, the first condition is regarding application for registration and the second condition is regarding audit by an accountant as defined in the Explanation below sub-section (2) of section 288. All NGOs are required to apply for registration within one year from the date of their creation. If there is delay in applying for registration then the organization should submit Audit Reports for the past three years or as may be available.
Filing of Return -
All NGOs having income exceeding Rs. 50,000 during the previous year are required to file their return of income. The 'income' for the purposes of filing the return should be computed without giving effect to the provisions of sections 11 and 12 of the Act. Such returns are to be filed with the Income-Tax Officer or the Assessing Officer under whose local jurisdiction they fall. The return is to be filed as per the provisions of section 139(4A) and (4C) in the manner provided in section 139 of the Act.
Filing of Return Made Mandatory -
The Finance Act, 2002 has inserted sub-section (4C) to section 139 making it mandatory for the organizations registered under section 10(21), 10(22B), 10(23A), 10(23B), 10(23C) etc. to file Annual Returns under section 139(1). Earlier no clear provision for filing of return by these organizations was available.
Audit report is one of the most important documents, which is required for fundraising. It states the financial health of your NGO, which is taken seriously by any donors, grant making dept and agencies.
Most of times NGO get their Audit report done by local inexperienced CAs, which carry lot of negative points during fundraising process. And, as result of that NGO fails to secure any funding in most of times.
NGO SYSTEM INDIA Solution for Audit Report -
NGO SYSTEM INDIA understands the exact requirement of audit report for fundraising process. So, it offers a customized solution to NGOs for preparing audit report in association with most experienced CAs in non-profit sector.
NGO SYSTEM INDIA also understands the cost involves in preparing audit report as well as affordability factors of NGOs. So it offers them a cost effective solution.
Audit Report is must for Fundraising.
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