A discussion of financial audits for alumni associations encourages their use as a means of checking the organization's financial systems, and gives suggestions for finding an auditor, keeping costs down, and preparing for the audit. (MSE)

The Postal Service is auditing and trying to collect back postage from nonprofit organizations, including alumni associations. Although the post office initially accepted the materials in question for mailing, it now says alumni associations illegally loaned their permits to commercial firms such as travel agencies. (MSE)

The reasons that the Internal Revenue Service often audits alumni associations are cited, and specific procedures and considerations in preparing for and conducting the audit are given. (MSE)

It is proposed that an external audit of a college advancement program is analogous to a periodic physical examination that offers objectivity and expertise. Audits are appropriate at the time of administrative transitions, performance difficulties, and even periods of sustained success. Guidelines and expectations are discussed. (MSE)