How has the Sarbanes-Oxley Act impacted nonprofit organizations?
Timoni: Some of the directives of the Sarbanes-Oxley Act apply directly to nonprofit organizations. For example, nonprofit organizations, like for-profit companies, are subject to the Act’s criminal provisions for destroying documents in the midst of a government investigation. The Act’s whistleblowers retaliation protections also apply. Editor: Why does it make a lot of sense for nonprofit organizations to become familiar with the Sarbanes-Oxley Act? Timoni: A variety of government agencies and professional associations have undertaken initiatives to expand the Sarbanes-Oxley Act to nonprofit organizations. Similar initiatives are underway before the New York, Massachusetts and California legislatures, and state attorneys general are looking to apply the requirements of the Sarbanes-Oxley Act to nonprofit organizations. For example, State Attorney General Eliot Spitzer has introduced legislation to strengthen New York’s corporate accountability laws. Pieces of such legislation would a
