Texas Senate Bill SB2180

Texas 2017 - 85th Regular

Caption

Relating to financial records and audits of nonprofit corporations.

Notes

Overall, SB2180 represents an effort by the Texas Legislature to strengthen the regulatory framework surrounding nonprofit organizations, ensuring that they operate with a degree of financial transparency expected by the public.

Impact

The impact of SB2180 is significant, as it establishes standards for financial record-keeping among nonprofit corporations in Texas. By requiring nonprofits to make their financial documents available for public inspection during regular business hours, the bill promotes transparency and helps build trust with the communities they serve. This increased access to financial information can empower stakeholders, including donors and the general public, to make informed decisions regarding the support of nonprofit initiatives.

Summary

Senate Bill 2180 introduces amendments to the Business Organizations Code relating to the financial records and audits of nonprofit corporations. The bill mandates that these organizations maintain financial records, books, and annual reports at their registered or principal office for a minimum duration of three years after the end of their fiscal year. This provision aims to enhance transparency and ensure that the financial practices of nonprofits are accessible to the public, fostering greater accountability within the sector.

Contention

Notable points of contention may arise regarding the implications of the bill on smaller nonprofit organizations that may struggle to comply with these requirements due to limited resources. Critics may argue that the financial burdens associated with maintaining comprehensive records and ensuring public access could disproportionately affect smaller entities. Additionally, the penalty for non-compliance is classified as a Class B misdemeanor, which could raise concerns about the legal ramifications for nonprofits unable to meet the new stipulations.