Is a statutory auditor mandatory for a non-profit organization? The rule and the limit that doesn't apply to you.

Last updated: July 2026

The short answer: in most cases, no. There is no rule that makes it so. mandatory statutory auditor for all ESAL simply by virtue of being so. The obligation arises in three ways: a specific regulation requires it, the bylaws stipulate it, or the entity overseeing the foundation instructs it. And the well-known cap of 5,000 minimum wages doesn't apply to foundations: it applies to commercial companies.

We are Hepacom, the Hechos Para la Comunidad Foundation (NIT 900.841.914-1), a non-profit organization that builds decent housing in the southern Aburrá Valley. Let's clear up any confusion: an audit you don't need is money that won't be used for cement.

When is a statutory auditor mandatory in a non-profit organization?

The Technical Council of Public Accounting, the official body that guides the accounting profession, has clarified this in several statements: there is no general legal obligation for a non-profit organization to have a statutory auditor. It only arises in three specific cases.

The first, that one special rule requires it of your type of entity. The second, the most common and the most overlooked: that the statutes They believe the position exists. Here's the trap, because many were created by copying a model that already included the auditing process, and no one ever read it again. If the position is there, appointing someone is no longer optional. The third point, that the inspection, surveillance and control entity —the governor or the mayor— instructs him.

That's why the useful question isn't "How much do we bill?", but "What do our bylaws say and who's monitoring us?". Start by What clauses must be included in the bylaws.

Why doesn't the 5,000 minimum wage cap apply to your foundation?

Because it is written for other entities. Paragraph 2 of Article 13 of the Law 43 of 1990 It says that having a fiscal auditor will be mandatory in all cases. commercial companies, of any nature, whose gross assets as of December 31 of the previous year are or exceed the equivalent of 5,000 minimum wages, or whose gross income of the previous year is or exceeds 3,000.

Read the first two: commercial companies. A foundation is not a non-profit organization: it has no partners, does not distribute capital in shares, and cannot distribute profits because its surplus is reinvested in its social purpose. Therefore, the CTCP has indicated that these limits do not automatically apply to non-profit organizations.

Let's be clear: this does not exempt you from keeping accounts or from being accountable to the DIAN (Colombian Tax Authority), and in the special tax regime Several procedures require the signature of an accountant or auditor. The details are in the annual obligations of a non-profit organization and in if foundations pay taxes.

What does Decree 1529 of 1990 say about foundations?

Here's the nuance that almost no one mentions. Decree 1529 of 1990 This applies to non-profit entities domiciled in the department and overseen by the governors. Article 3 lists what the bylaws must contain, and subparagraph g) states: "Fiscal Auditor. In the case of foundations or institutions of common benefit, it must be a certified accountant with their respective registration number.".

Note the detail: the regulation only mentions the auditor for foundations and non-profit institutions, not for associations or corporations. And this point is legally debated: some interpret it as an obligation to appoint an auditor, while others see it as a formal requirement of the bylaws. The CTCP itself has issued opinions with differing emphases.

What to do? Don't guess: if your foundation is overseen by a government agency, ask them what their requirements are and review your bylaws with your accountant. Accounting standards are published by the... Technical Council of Public Accounting.

Prepared by Hepacom based on the official text of Law 43 of 1990 (Art. 13, para. 2) and Decree 1529 of 1990 (Art. 3), published by the Public Service Department, and on the doctrine of the CTCP (Colombian Technical Council for Public Accounting). Mandatory compliance depends on the case: verify with your oversight entity. Last updated: July 2026.

Common mistakes with auditing in a foundation

• Applying an external limit: to do calculations with the 5,000 minimum wages as if the foundation were a commercial company.
• To have the position listed in the bylaws and leave it vacant: The most frequent and most costly mistake. The entity violates these rules as long as the position remains vacant.
• Name someone from the house: The reviewer must be independent. They cannot be the entity's accountant, a board member, or a relative of the legal representative.

Is a tax auditor the same as an accountant?

No, and confusing them leads many foundations to believe they have already fulfilled their obligations. The accountant compiles the financial information: recording, classifying, and preparing the financial statements. The auditor does the opposite: check This external audit provides public assurance that the accounts accurately reflect reality and that the entity complies with the law and its bylaws. Therefore, they cannot be the same person.

Seen this way, the audit ceases to be a mere formality: it's what allows a donor to trust you. If you're setting up your own from scratch, the step-by-step guide is available at [link/website/etc.]. How to create a foundation in Colombia.

How Hepacom accompanies you

If you run a small foundation, we know what happened: someone told you that you needed an auditor, you got a quote, and the number scared you. Write to us at donaciones@hepacom.org or from contact us And we'll tell you, free of charge, what questions to ask your accountant. We do this because a well-governed foundation is one that families can trust, and our work is to ensure that. decent housing in Colombia. However, we are not your legal advisor or auditor. Hepacom does not charge for guidance or handle paperwork.

Frequently Asked Questions

Is every foundation in Colombia required to have a fiscal auditor?
No. There is no general rule that requires it for all non-profit organizations. It only applies if a specific regulation requires it, if the bylaws stipulate it, or if the oversight entity instructs it. Start by reviewing your registered bylaws.

Does the 5,000 minimum wages of Law 43 of 1990 apply to my foundation?
Not automatically. That paragraph refers to commercial companies, and a foundation is not one. The CTCP has clarified that these limits do not automatically apply to non-profit entities.

What happens if the bylaws say there is an auditor and we haven't appointed one?
The organization is violating its own bylaws, and this may come to light during an inspection. The problem can be corrected by appointing a new person or amending the bylaws.

Last updated: July 2026. This is an informational guide; it is not legal or accounting advice. Oversight and procedures are handled by the competent official entity (the governor's office or mayor's office responsible for building inspections and the DIAN for tax matters). Regulations and their interpretation are subject to change: please verify through official channels and with a certified public accountant. Hepacom does not collect fees or process payments or procedures.