The American Competitiveness and Corporate Accountability Act of 2002 (Sarbanes-Oxley) was created to rebuild public trust in the corporate community and requires that publicly traded companies conform to new standards in financial transactions and audit procedures. A common belief is that some of the issues addressed in the Act will one day have an impact on nonprofits and many organizations are taking steps to analyze their own ways of improving their financial accountability.
The California Nonprofit Integrity Act of 2004 (SB1262 -- Sher, Chapter 919, Stats) seeks to improve corporate governance by nonprofit organizations and to prevent commercial fundraisers from engaging in unscrupulous fundraising practices. This law requires greater financial accountability by charities and commercial fundraisers and took affect on January 1, 2005. The law has significant effect on organizations with gross revenues of $2 million or more regarding annual independent audits and finance committee requirements.
Below are links to resources for additional information provided by Independent Resource, Board Source, California's Attorney General, and California Association of Nonprofits.
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