New Massachusetts Rules Target Financial Abuses

According to a report in The Boston Globe, if implemented, the proposed legislation would be among the most comprehensive nationally to address financial governance of charities. Reilly's "An Act to Promote the Financial Integrity of Public Charities" legislation, sponsored by Rep. Daniel E. Bosley (D-North Adams) and Sen. Mark C. Montigny (D-New Bedford), would require most board members on charities' audit committees to be independent; would require charities to pay their executives only "reasonable" compensation when measured against other nonprofit executives doing the same work; and would establish whistle-blower protections for employees who flag financial problems, the report said.