Nonprofit Integrity Act of 2004
The Nonprofit Integrity Act of 2004 signed into law by Gov Schwarzenegger became effective January 1, 2005. The Act requires nonprofits to have annual audits and creates new State and Federal annual form filing. Scandals in the nonprofit sector received considerable media attention and prompted state and federal legislators to seek reforms like the Integrity Act to improve the accountability of directors and trustees of public funds and to strengthen the oversight of charitable organizations fundraising campaigns.
The Nonprofit Integrity Act requires nonprofits place on file with federal and state agencies the following; articles of incorporation, bylaws, Names and addresses of all directors, officers and trustees, annual accounting period, Statement of activities in California, the first date the business began, and a Copy of the IRS determination letter. This information must be on file with the Attorney General’s Registry of Charitable Trusts.