Non-profit Groups Will Face More Scrutiny

www.EmploymentCrossing.com <br /><br />As bankers and top-level executives come under increased scrutiny in the wake of the global financial crisis, the leaders of non-profit organizations are going to suffer similar scrutiny, according to one Chicago lawyer. <br /><br />Michael W, Peregrine spoke at the annual meeting of the National Association of State Charity Officials. He told officials that a “spillover” to charities from “some of the events going on in Wall Street and Washington” is on its way. <br /><br />Boards of tax-exempt organizations “are beginning to brace themselves for the spillover, this climate of responsibility and possibly recrimination,” he said. <br /><br />Peregrine noted that nonprofit groups and their trustees have spent recent years successfully adjusting to the 2002 federal Sarbanes-Oxley Act, which improves the governance and accountability of publicly traded companies, and which was embraced by many charities. <br /><br />Peregrine worries that if there is too much scrutiny, professionals may resign their volunteer positions on the boards of charities.