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The whistleblower protections under the Sarbanes-Oxley act apply to all organizations, however almost all small nonprofit organizations unfamiliar with this legislation do not have whistleblower protection policies for their employees. Compounding this issue are the 2008 tax year revisions to IRS form 990 that now require nonprofit organizations to document whether they have adopted document retention, whistleblower protection, and conflicts of interest governance controls. Targeting Pennsylvania nonprofit organizations, the research carried out in this study sought to discover what impact an organizations unfamiliarity with the Sarbanes-Oxley act had on their compliance with this federal legislation. The research findings indicated that almost two-thirds of small nonprofit organizations that were not familiar with the Sarbanes-Oxley act did not have whistleblower protections for their employees.

SMALL NONPROFITS UNFAMILIAR WITH SARBANES-OXLEY FAILED TO ESTABLISH WHISTLEBLOWER PROTECTIONS