Senate Finance Committee Considers Major Charity Legislation

July 26, 2005 Published Work
The Nonprofit Advantage Newsletter, a quarterly publication of the Connecticut Association of Nonprofits

In the previous issue of The Nonprofit Advantage , I discussed the effect of the Sarbanes-Oxley legislation on nonprofits. To refresh your memory: Sarbanes was enacted in response to corporate abuses in the commercial sector. Except for provisions concerning whistle-blower protection and document retention, Sarbanes does not directly apply to nonprofits. However, it is clear that the nonprofit sector is under pressure to adopt governance and accountability reforms, so the indirect effect of Sarbanes on nonprofits is to raise the bar on what are considered "best practices."