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Bill

S 2849

Nonprofit Governance Integrity Act

119th Congress Introduced by Tom Cotton

The Nonprofit Governance Integrity Act mandates independent boards, financial transparency, and conflict of interest policies to boost accountability and protect donor interests.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 2849

Summary of Bill S 2849: Nonprofit Governance Integrity Act

Introduction

The Nonprofit Governance Integrity Act (S 2849) was introduced in the Senate on September 17, 2025. The bill aims to enhance the governance and accountability of nonprofit organizations in the United States. Sponsored by Senator Tom Cotton, this legislation seeks to address concerns regarding transparency and ethical practices within the nonprofit sector.

Purpose and Intent

The primary purpose of the Nonprofit Governance Integrity Act is to:
- Strengthen the governance frameworks of nonprofit organizations.
- Ensure greater transparency and accountability in their operations.
- Protect the interests of donors, beneficiaries, and the public by establishing clear standards for nonprofit governance.

Key Provisions

The bill includes several significant provisions aimed at improving nonprofit governance, including:

  1. Board Composition Requirements:

    • Mandates that nonprofit boards must have a majority of independent members to prevent conflicts of interest.

  2. Financial Transparency:

    • Requires nonprofits to disclose detailed financial reports, including executive compensation and funding sources, to the public annually.

  3. Conflict of Interest Policies:

    • Establishes requirements for nonprofits to adopt and enforce conflict of interest policies for board members and key staff.

  4. Whistleblower Protections:

    • Provides protections for individuals who report unethical or illegal activities within nonprofit organizations, encouraging a culture of accountability.

  5. Training and Resources:

    • Allocates resources for training nonprofit leaders on best governance practices and ethical standards.

Affected Parties

The Nonprofit Governance Integrity Act would primarily affect:
- Nonprofit organizations across various sectors, including charities, foundations, and educational institutions.
- Board members and executives of these organizations, who will need to comply with new governance standards.
- Donors and beneficiaries, who will benefit from increased transparency and accountability.

Procedural Aspects

  • The bill was read twice and referred to the Committee on Finance on the same day it was introduced.
  • As of now, the bill is in the early stages of the legislative process, and further actions will determine its progression through Congress.

Conclusion

The Nonprofit Governance Integrity Act (S 2849) represents a significant step towards improving the integrity and accountability of nonprofit organizations in the United States. By establishing clear governance standards and promoting transparency, the bill aims to enhance public trust in the nonprofit sector. Stakeholders in the nonprofit community should monitor the bill's progress and prepare for potential changes in governance practices if it is enacted.

Compiled from official sources — confirm details with the bill’s official record.

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