October 13, 2005 | Read Time: 1 minute
The latest report by a national committee of nonprofit leaders concludes that some changes to state and federal laws are needed to stamp out abuses at charities and foundations, and that nonprofit organizations need to police themselves more rigorously. In most cases, however, enacting new federal laws to regulate charities is unnecessary, the committee said.
The 34-page report, the second in a series, was prepared by a committee of more than 100 nonprofit officials assembled by Independent Sector, a coalition of charities and foundations.
The reports were requested by key members of Congress who are drafting legislation designed to improve nonprofit accountability. One recommendation: Charities should spell out the compensation of each trustee on their informational tax returns.
In its first report, the committee urged charities and foundations to make dozens of changes in their operations to strengthen their governance and accountability, and to help prevent abuses by nonprofit organizations (The Chronicle, July 21). The committee is now considering final revisions to its second report before submitting the recommendations to the Senate Finance Committee.
Copies of the report are available online at http://www.independentsector.org.
