How are nonprofits monitored, regulated and governed?
The overwhelming majority of nonprofits in the United States operate in an ethical and accountable manner. However, nonprofits are not immune to damage that can be caused by unscrupulous and fraudulent solicitors, financial improprieties, and executives and board members who place personal gain above the organization’s mission. Because nonprofits are held to such high standards, they have created many lines of defense against fraud and corruption: • Boards- All nonprofits are governed by a board of directors or trustees (there’s no real difference), a group of volunteers that is legally responsible for making sure the organization remains true to its mission, safeguards its assets, and operates in the public interest. • Private Watchdog Groups – Several private groups (who are themselves nonprofits) monitor the behavior and performance of other nonprofits. • State Charity Regulators – The attorney general’s office maintains a list of registered nonprofits and investigates complaints of
