Friday, February 08, 2008

Does Mass. Law Force Sarbox on Non-Profits?

A Massachusetts healthcare workers union is asking board members of Beth Israel Deaconess Medical Center to apply Sarbanes-Oxley Act disclosure rules to the non-profit hospital's audits.

The 1199 SEIU United Healthcare Workers East sent letters to six of Beth Israel's 18 board members, who also serve as executives or sit on boards of public companies, citing state law as a precedent for the request. The SEIU acknowledges that under federal law non-profit organizations are not required to adhere to Sarbox provisions. However, the union says that under Massachusetts law, non-profit directors must use their expert knowledge and experience in their role as non-profit fiduciaries. As a result, argue union officials, any director who applies Sarbox standards to their public company duties are required to do the same at a non-profit.

Does Mass. Law Force Sarbox on Non-Profits?

Labels: compliance, non profit, sarbanes oxley

Tell us what you think. (0) comments.
Send to a friend:

Tuesday, January 22, 2008

Board's Give Or Get More Expensive Now

More than half of nonprofits now require board members to make an annual contribution, with a major share of large ones setting a minimum of $5,000.

That finding, in the new edition of National Board Governance Survey for Not-for-Profit Organizations conducted by the accounting firm Grant Thornton LLP, comes against a backdrop of more and more nonprofits reshaping board of directors practices and policies to fit the Sarbanes-Oxley Act. Just as more public companies expect their directors own stock, nonprofits expect an investment as well.

While it excludes nonprofits, Sarbanes-Oxley in 2002 established new or enhanced standards for all U.S. public company boards, management, and public accounting firms. It does not apply to privately held companies. The Act deals with everything, from responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law.

Board's Give Or Get More Expensive Now

Labels: governance, non profit

Tell us what you think. (0) comments.
Send to a friend: