What Critiques of Sarbanes-Oxley Can Teach About Regulation of Nonprofit Governance

Nonprofit corporations, of course, are not alone in having to satisfy both federal and state regulators. The history of regulation in this sector, combining state corporate law with federal tax law, has produced some particular complications. How best to resolve those complications is a continuing challenge, but one that cannot be avoided. The response to SOX and the relationship between the SEC and for-profit corporate governance offer some guidance and insight. The critique of SOX suggests revisions to current laws or proposed laws regarding nonprofits.