You generally cannot request an audit of a nonprofit as an outsider and have the organization comply. The board controls that decision. Unless you’re a voting member or director with rights under the bylaws, the practical route is to file a complaint with a regulator — your state attorney general or the IRS — that can open its own investigation and, where warranted, compel an examination or impose sanctions. Before filing anything, check whether the nonprofit already owes an audit under existing rules, and gather the financial records that will make your complaint credible.
Check Whether an Audit Is Already Required
Some nonprofits are legally obligated to conduct independent audits, and a failure to do so is itself a reportable violation. This is often the fastest lever.
Most states require charities above a certain size to file audited financial statements as a condition of charitable registration. Thresholds vary widely. Some states trigger the requirement at $500,000 in annual contributions; others set it at $1 million or $2 million in revenue. These audits are typically filed with the state attorney general or the state’s charitable registration authority.
At the federal level, nonprofits that spend $1 million or more in federal award funds during a fiscal year must undergo a “single audit” under the federal Uniform Guidance. That threshold was raised from $750,000 in 2024.1Office of Inspector General – HHS.gov. Single Audits FAQs A single audit is only relevant when the nonprofit receives substantial government funding.
Even when no law requires it, rating organizations push nonprofits toward independent audits. Charity Navigator expects organizations with more than $1 million in total revenue to complete an independent audit as part of its accountability scoring and checks whether the audit and Form 990 are posted publicly.2Charity Navigator. Accountability and Finance The BBB Wise Giving Alliance requires that a governing board receive audited financial statements annually to meet its accreditation standards.3Give.org. BBB Standards for Charity Accountability Public pressure through those channels sometimes accomplishes what a complaint can’t.
If You’re a Member or Director, Start With the Bylaws
If you have a formal legal connection to the nonprofit as a voting member or board director, you may have a direct path to an audit without involving any regulator. Read the bylaws first. Many include a procedure for members or a minority of the board to request or compel an independent audit.
Even without a specific audit provision, voting members generally have a statutory right to inspect the organization’s records. Under the framework most states follow, a member can inspect accounting records, board minutes, and financial statements by submitting a written demand at least five business days in advance, so long as the request states a proper purpose and describes the records with reasonable detail. The organization can deny access if the request lacks a legitimate purpose or is overly broad.
If the nonprofit refuses a valid inspection request, you can sue to enforce your rights. Court filing fees vary by jurisdiction and attorney costs add up, so this is realistic mainly when the financial stakes justify it. For donors and members of the public without a governance role, the internal channel is closed, and a regulatory complaint is the practical alternative.
Pull the Form 990 and Build Evidence
Regulators receive many complaints. The ones that move are backed by concrete evidence and specific allegations, not general suspicion. Your goal is to document a particular violation — misuse of charitable funds, self-dealing by insiders, or failure to meet tax-exempt requirements — with enough detail that a reviewer can see the problem without redoing the investigation.
Every tax-exempt organization files some version of IRS Form 990, and those filings are legally required to be available for public inspection.4eCFR. 26 CFR 301.6104(d)-1 – Public Inspection and Distribution of Applications for Tax Exemption and Annual Information Returns of Tax-Exempt Organizations The Form 990 reports revenue, expenses, executive compensation, governance practices, and related-party transactions, which makes it the single most useful document for spotting problems.5Internal Revenue Service. Form 990 Resources and Tools You can find recent filings for free through the IRS Tax Exempt Organization Search.6Internal Revenue Service. Tax Exempt Organization Search You can also request the return directly from the nonprofit, which must make it available at its principal office during business hours and respond to written requests.
One caveat on small organizations. Nonprofits with gross receipts normally at or below $50,000 file Form 990-N, an electronic postcard with almost no financial detail.7Internal Revenue Service. Annual Electronic Filing Requirement for Small Exempt Organizations – Form 990-N (e-Postcard) Mid-sized organizations with gross receipts under $200,000 and total assets under $500,000 file the shorter Form 990-EZ.8Internal Revenue Service. Instructions for Form 990-EZ If your target falls into either bucket, the public filings alone may not give you much, and you’ll need to lean on other documentation.
Strong supporting evidence includes:
- Form 990 red flags: unusually high executive compensation, related-party transactions, large unexplained expenditures, or gaps between reported programs and actual operations.
- Financial documents: copies of checks, invoices, contracts, or transaction records showing questionable spending, particularly if you had legitimate access through your role at the organization.
- Written communications: emails, letters, or meeting minutes where leadership acknowledged, directed, or concealed improper activity.
- Specific details: dates, dollar amounts, and names. Vague allegations of “financial mismanagement” without specifics rarely prompt action.
The complaint should tell a clear story: what happened, when, who was involved, and why it violates the law or the organization’s charitable purpose. Attach copies, not originals.
File a Complaint With the State Attorney General
Your state attorney general is the primary regulator overseeing charitable organizations. Attorneys general have broad authority to investigate nonprofits, ensure charitable assets are spent properly, and hold directors and officers accountable for fiduciary failures.9National Association of Attorneys General. Charities Regulation 101 They can bring legal action against organizations that violate state charitable solicitation laws or mismanage funds.10StateAG.org. About AG Policy Areas
Find the charitable trust or charitable organizations division on your state attorney general’s website. Most offices provide a downloadable complaint form; some accept online submissions, and all accept complaints by mail. Send the form with your supporting documentation, and reference the evidence directly.
Once you file, expect limited feedback. Confidentiality rules generally prevent the office from telling you whether an investigation has been opened or what it found. Your complaint is kept on file, and even if it doesn’t produce immediate action, it may help establish a pattern if others follow.
File a Complaint With the IRS
The IRS oversees federal tax-exempt status and focuses on compliance with the Internal Revenue Code. Its main concerns at the federal level are insiders enriching themselves from the organization’s earnings (private inurement), excessive political or lobbying activity, and inaccurate financial reporting on the Form 990.11Office of the Law Revision Counsel. 26 USC 501
The IRS accepts complaints through Form 13909, the Tax-Exempt Organization Complaint (Referral) Form. You can fill out a digital version on irs.gov and submit it online, download the PDF and mail it, or email the completed form with attachments to eoclass@irs.gov. A letter with the same information and documentation works too.12Internal Revenue Service. IRS Complaint Process – Tax-Exempt Organizations
If you provide your name and mailing address, the IRS will send a written acknowledgment confirming receipt. Anonymous complaints are accepted but won’t be acknowledged. Beyond that letter, the IRS cannot tell you whether an investigation was opened, what it found, or what action was taken. Tax return confidentiality under Section 6103 of the Internal Revenue Code prohibits those disclosures.12Internal Revenue Service. IRS Complaint Process – Tax-Exempt Organizations
What the IRS Can Actually Do
Revocation of tax-exempt status is not the only enforcement tool, and in complaint-driven cases it’s not usually the first one. The IRS often reaches for intermediate sanctions.
Under Section 4958 of the Internal Revenue Code, when an insider receives an “excess benefit” from the nonprofit (compensation or a financial arrangement above fair market value), the IRS can impose a 25% excise tax on the excess, paid by the person who received it. Organization managers who knowingly approved the transaction face their own 10% tax, capped at $20,000 per transaction. If the insider doesn’t correct the excess benefit within the allowed period, a second-tier tax of 200% of the excess benefit applies.13Office of the Law Revision Counsel. 26 USC 4958
Revocation is the most severe outcome and is relatively rare in complaint-driven cases. It’s more commonly triggered automatically: any organization that fails to file its required Form 990 for three consecutive years automatically loses its exemption.14Internal Revenue Service. Automatic Revocation of Exemption For complaint-based investigations, the IRS may also run a compliance check, issue warnings, or negotiate corrective actions short of revocation.
Special Rules if the Nonprofit Is a Church
If the organization is a church, the IRS faces significant procedural restrictions. Under Section 7611 of the Internal Revenue Code, the IRS cannot begin a church tax inquiry unless an appropriate high-level Treasury official (at or above the rank of a principal Internal Revenue officer for a region) has a reasonable belief, based on written facts, that the church may not qualify for exemption or is engaged in taxable activity. Before any examination of church records begins, the IRS must give the church at least 15 days’ written notice and an opportunity to participate in a conference.15Office of the Law Revision Counsel. 26 USC 7611
These limits don’t apply to criminal investigations or willful tax evasion, but they do mean a Form 13909 complaint about a church faces a higher procedural bar. You can still file the same way. The extra requirements fall on the IRS, not on you, but set realistic expectations about timing and likelihood of action.
Whistleblower Protections if You Work There
If you’re an employee or volunteer at the nonprofit and worried about retaliation, federal law offers real protection. Under 18 U.S.C. § 1513(e), anyone who retaliates against a person for providing truthful information about a federal offense to law enforcement faces up to 10 years in prison.16Office of the Law Revision Counsel. 18 USC 1513 This applies to all employers, including nonprofits. Separately, 18 U.S.C. § 1519 makes it a federal crime, punishable by up to 20 years, to destroy, alter, or conceal documents to obstruct a federal investigation.17Office of the Law Revision Counsel. 18 USC 1519 – Destruction, Alteration, or Falsification of Records in Federal Investigations
These protections cover retaliation for reporting to federal agencies like the IRS. They don’t necessarily cover retaliation for raising concerns purely through internal channels, though many states have their own whistleblower statutes that may fill that gap. Before reporting from inside the organization, it’s worth consulting an employment attorney about the specific protections in your state.