By Jill Gilbert Welytok , Daniel S. Welytok
Because the quantity and dimension of nonprofit organisations keeps to develop, NFPs are coming less than ever-increasing executive scrutiny. quickly Congress would require that nonprofits agree to rigorous accounting and governance criteria similar to these set forth for for-profits within the Sarbanes-Oxley Act.
should you paintings for a nonprofit and are fascinated about assembly coming near near alterations to tax and finance criteria governing NFPs this publication is for you. In basic, straight-forward language, this advisor demystifies the usually difficult global of nonprofit governance within the age of Sarbanes-Oxley. writer, Jill Gilbert Welytok, an lawyer who heads the Sarbanes-Oxley department of an immense Midwest legislations company, walks you step by step during the technique of comparing your governance constructions. She palms you with suggestions and techniques for adopting uniform criteria less than present governance and tax legislation, whereas getting ready you for any upcoming alterations. She indicates you the way to guard your tax prestige and reassure donors and volunteers whereas staying precise for your organization’s undertaking. and he or she fills you in on what you must comprehend to: <ul type="disc"> * conform to nation legislation and rules * Get and preserve tax–exempt prestige * stay away from proceedings and different criminal landmines * deal with the media * expect destiny traits * Make feel of the Sarbanes–Oxley act
together with pattern nonprofit bylaws and an entire audit committee document, Nonprofit legislations & Governance for Dummies, moment Edition is an quintessential survival instrument for 21<sup>st</sup> century nonprofits.
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Additional info for Nonprofit Law & Governance For Dummies
S. workforce. S. nonprofit sector the sixth largest economy in the world — larger even than the economies of Canada or Russia. S nonprofits: why so many exist and the policy reasons that justify granting millions of them tax-immunity. But there’s even more to this opening chapter. Those people who are running nonprofits also need to be aware of recent scrutiny and legislation in the nonprofit world. Inspired by tales of fundraising fraud, conflicts of interest, bloated compensation, and careless accounting, state and federal legislators are hard at work creating new laws to restore public confidence.
Lesson #2: Exercise oversight in distributing program funds In the aftermath of the Hurricane Katrina disaster of 2005, Federal Emergency Management Agency (FEMA) executives and charitable employees were arrested on federal bribery charges for inflating the number and cost of meals served at Hurricane Katrina relief centers. 2 million in funds to a town that was barely touched by the Hurricane. National media reported that town residents formed long lines to receive $2,400 payments, which they then used to buy jewelry and other nonessential items.
The Revised Model Nonprofit Corporation Act was adopted in 1987 by a subcommittee of the American Bar Association. This revised Act contains sample laws on many issues, including the following: ߜ Requirements for registration with the state ߜ Requirements for what must be included in an acceptable set of Articles of Incorporation ߜ Requirements for what belongs in a nonprofit’s bylaws The Revised Model Nonprofit Corporation Act is the most important model act for nonprofits. Its most important provisions are reproduced in Appendix D.