How Independent Audits and Audit Committees Protect Nonprofits

A nonprofit’s viability may depend heavily on the organization’s financial credibility. Proper financial management is essential to the health of any nonprofit and may be pivotal to the protection of the organization’s mission and consequent effectiveness and efficiency. Independent audits and audit committees can help nonprofits make informed financial decisions that further the development and application […]

The Finance Committee: What is it and What Does it Do?

  A board of a nonprofit is generally empowered to create committees at its discretion, subject to the organization’s bylaws and the laws of the state of its incorporation.  For each committee it creates, the board should determine the level of authority to be given to the committee and how it will maintain appropriate oversight […]

Nonprofit Integrity Act – Audit Committee

QUESTION:  Can a charitable organization subject to the Nonprofit Integrity Act’s requirement of an audit committee include on such committee its CEO or CFO? ANSWER:  It depends (sorry about this standard lawyer’s response, but read on).  California Government Code section 12586(e)(2) provides that “the member or members of the audit committee shall not include any […]