Impact of Different Governance Policies on Not-for-Profit Resource Use

• In Event: Breakfast with Research Round Table Session

Abstract

Sarbanes-Oxley (SOX) reforms and the revision of the Internal Revenue Service’s Form 990 have made greater information about governance available for non-for-profit organizations. Research to date has focused on what characteristics are associated with the adoption of SOX recommendations and the newly reported governance policies. This study will examine whether or not there are associations between the different governance structures and the effectiveness of management's control of resource use. The ability of the organization to acquire funds through donations or grants will also be assessed. In addition, we will look into the impact on revenues and reasons reported in the Form 990 Schedule O for a non-for-profit’s failure to adopt a whistle-blower policy which is required under SOX legislation. The revised Form 990 added requests for information on the following governance policies: whistle-blower policy, documentation of board meetings, voting rights among members of governing body, review of 990 by board before filing, annual discussion of potential conflicts of interest, document retention policy, compensation approval process for the CEO, Executive Director or top management official, audit committee with oversight of audit, review or compilation of financial statements.

Authors

• Susan Havranek, Penn State University - Harrisburg

• Marie Blouin, Ithaca College