Whistleblower Protections in the Nonprofit Sector

• Posted by Geoffrey G. Gussis on October 11th, 2005


• Filed in Uncategorized

Are you an in-house counsel at a non-profit? If so, you might want to check out Jason Zuckerman’s recent article on whistleblower protections in the non-profit sector:

"Since the enactment of the Sarbanes-Oxley Act of 2002 (SOX), publicly traded companies have begun to focus on protecting whistleblowers and providing mechanisms for employees to raise concerns. This results from numerous provisions in SOX that mandate whistleblower protection, a high number of SOX whistleblower-retaliation complaints filed with the U.S. Department of Labor, and the realization that it is better for an organization to learn about unethical or unlawful conduct internally than to find out about the conduct from a news article, a subpoena from law enforcement, or an investigation from a regulatory agency.

Unfortunately, the scandals that prompted Congress to enact SOX have
not been limited to the private sector. Nonprofits have also been subject to increasing scrutiny due to allegations of excessive compensation, self-dealing, and ineffective governance. Many of these problems came to light from whistleblower disclosures."

Link: Whistleblower Protections in the Nonprofit Sector.