Financial Reporting Legislation May Have Significant Spillover Effect on Nonprofits

10/9/2003

From: Malcolm McIntyre, Alliance for Children and Families, 800-221-3726, ext. 3602, mmcintyre@alliance1.org.

MILWAUKEE, Wis., Oct. 9 -- A new report by the Alliance for Children and Families says the Sarbanes-Oxley Act of 2002, which was designed to curb corporate financial reporting abuses, will spark a wave of voluntary compliance by nonprofit organizations. The Alliance's research found that 42 percent of nonprofit executives familiar with the legislation do believe it will have a spillover impact on nonprofits.

"Responding to the Sarbanes-Oxley Act of 2002: The Financial Reporting Practices of Nonprofits," suggests that three factors-state pushes for greater regulation of nonprofits, accounting profession influence on financial reporting and governance practices, and nonprofit board and executive leadership-will motivate nonprofits to embrace the principles and best practices of the Sarbanes-Oxley Act.

The report details the results of an electronic survey and personal interviews conducted in April and May with Alliance member agency board representatives and senior management staff.

Media Notes:

More details on the report, which also offers a summary of the key provisions of Sarbanes-Oxley most likely to impact nonprofit financial practices, are available at http://www.alliance1.org/About/news/sarbanes_facts.htm

Interviews with Peter Goldberg, Alliance president and CEO can be arranged. For more information, contact Malcolm McIntyre at 800-221-3726, ext. 3602 or mmcintyre@alliance1.org.

Alliance for Children and Families: Headquartered in Milwaukee, the Alliance for Children and Families is one of the largest private, nonprofit human services associations in the United States with more than 310 members. More information at: http://www.alliance1.org.