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New regulations

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State regulation of nonprofits is increasing throughout the U.S., with 15 states introducing 24 new oversight bills this year, a new study says.

The study, conducted by the National Council of Nonprofit Associations, says the legislation was spurred by a variety of factors, including tight state budgets, high-profile scandals within the nonprofit sector and federal business oversight legislation passed in 2002 that is having ripple effects in the sector.

Some states are using new laws to derive revenue from charities, in some cases by changing property taxes or taxing the income generated by nonprofits from unrelated ventures, the study says.

Other states are changing requirements for financial disclosure, including four that are mandating that nonprofits present audited financial statements as well reports currently required.

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