SayPro Internal Audit Checklist: Ensuring Audit Preparation for Fundraising and Donations.

An internal audit checklist serves as a crucial tool for SayPro to ensure that all necessary records and documentation are collected, reviewed, and prepared for an external fundraising and donation audit. This checklist outlines the key steps and items to verify that SayPro is compliant with all relevant financial and tax laws and that it meets the standards for transparency and accountability in fundraising.

The Internal Audit Checklist is organized by key categories—financial records, donor documentation, compliance records, and related agreements—ensuring that each critical area is thoroughly reviewed before an external audit.

SayPro Internal Audit Checklist for Fundraising and Donation Management

1. Financial Records

These records ensure that SayPro’s financial activities, especially in relation to fundraising, are properly tracked, categorized, and in compliance with internal and external financial reporting standards.

• [ ] Donation Receipts:
  • Verify that all donation receipts have been issued to donors, including the donation amount, donor information, and acknowledgment of tax-exempt status.
  • Ensure that receipts for donations over $75 include statements confirming no goods or services were provided.
  • Confirm that receipts are organized by donor name and transaction date for easy access.
• [ ] Financial Reports:
  • Review the most recent Form 990 filed with the IRS to ensure it accurately reflects all income, expenses, and program activities.
  • Ensure that all income from donations, sponsorships, and crowdfunding has been properly categorized.
  • Double-check all fund allocation reports to verify that fundraising expenses and program costs have been accurately reported.
  • Confirm that any in-kind donations have been recorded with appropriate valuations.
• [ ] Bank Statements and Transactions:
  • Reconcile the bank statements with internal donation records to ensure that all fundraising funds were deposited into SayPro’s official bank accounts.
  • Confirm that no unauthorized or unaccounted-for withdrawals or transfers have occurred.

2. Donation Logs

This section focuses on the records detailing individual donations, including donor information, amounts, and acknowledgment letters, ensuring proper documentation and donor engagement.

• [ ] Donor Logs:
  • Ensure all donations are logged in an organized and consistent format with the donor’s name, address, donation amount, and date.
  • Cross-check the logs with the actual bank deposits to ensure the amounts match and no discrepancies exist.
• [ ] In-Kind Donation Documentation:
  • Review records of in-kind donations, including detailed descriptions and estimated values.
  • Verify that appropriate acknowledgment letters have been issued to donors of in-kind gifts.
  • Confirm that these donations are reflected in the financial reports and Form 990.
• [ ] Acknowledgment Letters:
  • Confirm that all acknowledgment letters for donations, including sponsorships and crowdfunding contributions, are timely and compliant with IRS standards.
  • Ensure that letters include required information, such as donation amounts, acknowledgment of tax-exempt status, and no exchange of goods/services for donations over $75.

3. Fund Allocation and Expense Documentation

Ensuring that all raised funds are allocated appropriately, this section tracks how funds are spent, making sure that SayPro adheres to the intended purpose of the campaign.

• [ ] Fund Allocation Reports:
  • Review reports showing how the funds raised were allocated across different projects, programs, or operational costs.
  • Confirm that expenses align with the fundraising objectives and that no funds have been misallocated.
• [ ] Fundraising Expenses:
  • Ensure that all costs related to fundraising activities (e.g., event costs, marketing materials, platform fees) have been recorded and classified under the correct expense categories.
  • Review any receipts, invoices, or contracts related to fundraising expenses to confirm they are within budget and consistent with previous reports.
• [ ] Event and Campaign Costs:
  • Verify that event and campaign costs (e.g., venue rental, promotional material, guest speakers) are documented and properly categorized.
  • Check that funds allocated to these costs are proportionate and comply with the overall goals of the campaign.

4. Sponsorship and Crowdfunding Agreements

Proper documentation of sponsorship and crowdfunding agreements ensures that all agreements are honored, and funds are managed according to expectations.

• [ ] Sponsorship Agreements:
  • Review all signed sponsorship agreements to confirm the sponsorship amounts, payment schedules, and sponsor benefits are outlined clearly.
  • Cross-check actual payments received with the amounts specified in the agreements.
  • Verify that all sponsor benefits (e.g., logos, mentions) were delivered according to the agreements.
• [ ] Crowdfunding Platform Agreements:
  • Ensure that all crowdfunding platform agreements are signed and on file, containing the agreed-upon terms, such as platform fees, fund disbursement timelines, and fundraising goals.
  • Verify that funds raised through crowdfunding platforms are consistent with the records of payments received.
• [ ] Proof of Platform Fees and Costs:
  • Confirm that any crowdfunding platform fees and associated charges (e.g., processing fees, withdrawal fees) are documented and accounted for in the financial reports.
  • Ensure that SayPro retains receipts or statements from crowdfunding platforms.

5. Tax Compliance Documentation

This section ensures that SayPro is in compliance with tax laws related to fundraising, tax-exempt status, and donor receipts. Proper tax compliance is essential for maintaining legal standing and avoiding penalties.

• [ ] IRS Form 990:
  • Confirm that Form 990 has been filed correctly and on time with the IRS, reflecting all donation, sponsorship, and crowdfunding activity.
  • Double-check that financial data from donation receipts and bank transactions align with the information provided in Form 990.
• [ ] Sales Tax Exemption Documents:
  • Ensure that SayPro holds valid documentation proving its sales tax exemption status (if applicable).
  • Review any tax-exempt purchase records to confirm that SayPro has utilized its exemption where appropriate.
• [ ] Donor Acknowledgment Letters:
  • Verify that donor acknowledgment letters, particularly for larger donations or in-kind gifts, comply with IRS requirements for tax deduction purposes.
  • Ensure that letters are issued for all donations above $75.
• [ ] State and Local Tax Filings:
  • Confirm that all required state and local tax filings have been submitted, including fundraising registration forms or required reports.
  • Cross-check that state-level filings align with federal tax filings for consistency.

6. Employee and Contractor Documentation

This section ensures that SayPro has the appropriate records related to the employees, contractors, or vendors engaged in fundraising efforts.

• [ ] W-9 Forms:
  • Confirm that W-9 forms have been completed for all contractors or vendors who received payments of $600 or more.
  • Ensure that the forms are up-to-date and filed in a secure location.
• [ ] Contractor Payment Documentation:
  • Review payment records for contractors to ensure that payments have been made according to agreed terms and that the proper tax documentation (e.g., 1099 forms) will be issued.
  • Verify that SayPro has complied with IRS reporting requirements for contractor payments.

7. Documentation and Record Accessibility

This section ensures that all documentation is organized, accessible, and ready for review by both internal teams and external auditors.

• [ ] Document Organization:
  • Ensure all relevant records (e.g., receipts, agreements, tax forms, bank statements) are organized and categorized properly.
  • Verify that electronic and physical records are up-to-date and stored in a secure and easily accessible manner.
• [ ] Audit-Ready Folder:
  • Create a designated folder or digital archive for audit documentation, ensuring that all items on the checklist are collected and easily accessible.
  • Confirm that all documentation is reviewed by key team members before submission to auditors.

Conclusion

The SayPro Internal Audit Checklist serves as a thorough guide for ensuring that all fundraising, donation, and financial records are properly collected, reviewed, and prepared for external audit. By following this checklist, SayPro can ensure that it remains compliant with tax laws, upholds transparency in its financial activities, and is fully prepared for a successful audit process. Regular internal audits using this checklist also contribute to continuous improvement in financial management practices, donor relationships, and organizational transparency.