> The connotation of a non-profit is that it's being audited.

This is very geography-specific. In the US, 501(c)(3)s (what most people think of when they say "non-profit" where I am) have no general requirement for audits. There's also plenty of non-profit-by-some-definition organizations that never file a Form 1023, giving up some benefits of the 501(c)(3) regulations but in exchange being even less regulated.