New law requires more accountability from nonprofits
The North Carolina General Assembly enacted a law in July that will require nonprofit organizations to be more accountable to the public.
House Bill 572 adds an amendment to Part 2 of Article 16 of Chapter 55A of the General Statutes to read: "§ 55A-16-24. Financial statements for the public."
The law stipulates, in part, that a nonprofit corporation receiving more than $5,000 of public funding within a fiscal year must provide its "latest annual statements upon written demand from any member of the public." The statement will also have to identify additional information about how much public money was collected and how the funds were used.
The law officially went into effect Oct. 1.