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News < Back Compliance : Sarbanes Oxley : Law : Survey S-OX Making an Impact on Not for Profits Jaeckle Fleischmann & Mugel Survey Finds
Significantly, a total of 36% of respondents reported that their organizations have made changes in response to Sarbanes-Oxley with respect to their governance structures and policies. In addition, 35% of respondents indicated that they anticipate making future changes as a result of Sarbanes-Oxley. A copy of the full survey report can be found on the Firm's website at www.jaeckle.com. In response to the results described above, James J. Tanous, Chairman stated, ?Even though Sarbanes-Oxley, for the most part, does not apply to not-for-profits, not-for-profits, as they should, are nevertheless beginning to take steps to comply with certain of its provisions. The changes we are seeing in the area of not-for-profit governance are a reflection of increasing sensitivity to the need for good governance in the wake of corporate scandals of recent years and the impact of the standards set forth in Sarbanes-Oxley." In addition, the survey revealed significant findings with respect to the changes that not-for-profits have made in response to the two provisions of Sarbanes-Oxley that currently apply to not-for-profits: Section 802, which prohibits the destruction of documents under certain circumstances and Section 1107, which protects employees who report suspicious activities (i.e. whistleblowers). Not-for-profits should demonstrate compliance with these provisions by adopting records retention/document destruction and whistleblower policies. However, 61% of respondents reported that they still have no whistleblower policy and 30% reported they have no records retention or document destruction policy. In response to these results, Vincent P. Ravaschiere, Of Counsel to Jaeckle Fleischmann & Mugel stated, "As a best practice, not-for-profits should create and enforce document destruction and whistleblower policies. Doing so is a cost-effective way to ensure compliance with Sarbanes-Oxley." Jaeckle Fleischmann & Mugel, LLP, with more than 70 legal professionals, serves clients in need of Bankruptcy, Board Governance, Business and Corporate, Economic and Land Development, Employee Benefits, Environmental, Estates & Trusts, Healthcare, Immigration, Intellectual Property, International Trade, Labor & Employment, Litigation, Nonprofit, Real Estate, Securities/Finance and Tax matters. For four consecutive years, the Firm was named to Corporate Board Member magazine's list of Best Corporate Law Firms in America. |
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