GOV2328. Board Governance; State Attorney General Investigations

While audits of nonprofit organizations by Internal Revenue Service have become increasingly uncommon, investigations by state attorney generals and other regulators have increased significantly. A dramatic increase in the number of states in which electronic filing of financial reports has made it more efficient for regulators in some states to quickly determine whether an organization should be scrutinized. Increased politicalization of social issues have similarly increased state regulatory review of nonprofits in many states. As a result, all professionals advising nonprofits need to be familiar with the state attorney general investigations, how to manage such process and what steps should be taken in advance so as to ensure that an organization can be best positioned for success.

Learning Objectives:

• Analyze the role of the state Attorney General in overseeing and investigating nonprofits, and recent AG actions that involve accountants/auditors
• Identify the Attorney General investigatory priorities and how you can help your clients avoid scrutiny
• Recognize legal considerations when your client is under investigation