Nonprofits Adopt Governing Policies


Since the implementation of Sarbanes-Oxley, board governance policies at not-for-profit organizations have dramatically changed, especially when it comes to whistleblower and conflict-of-interest policies.

Of the 89% of organizations that have a conflict-of-interest policy in place, more than nine out of 10 require board members to sign the policy and more than two-thirds (68%) have executive management sign—an increase from 50% in 2003. Requirements for committee members to sign were also up this year—41% vs. 29% in 2006.

Nearly 70% of organizations had whistleblower policies. Whistleblower complaints are most often submitted to the chairman of the audit committee (in 21% of organizations), legal counsel (19%) or executive management (18%).

Other popular board governance policy changes included:

Implementation of accounting policies

Revision of investment policy

Establishment of audit committee

Update of record-retention policy

Establishment of code of ethics

Establishment of policy for board members to review Form 990/990-T


Source: Grant Thornton LLP’s National Board Governance Survey for Not-for-Profit Organizations, www.grantthornton.com .

SPONSORED REPORT

Tax reform changes are now in effect

With all the recent tax law changes, this year it’s more important than ever to make sure your clients’ tax situations are squared away before year end. This report provides necessary guidance to ensure 2019 starts without a hitch.

PODCAST

Using drones to enhance audits

Hermann Sidhu, CPA, global assurance digital leader at EY, walks us through EY’s exciting new project to use drones to help audit large warehouses and outdoor inventories.