Chapter 7Environment, Regulatory, and Compliance Issues

There are many similarities and some distinct differences across types of nonprofits and nongovernmental organizations. Assuming that all nonprofits are alike when thinking about risk can have disastrous consequences. Think about the kind of knee-jerk reaction that can happen when managers or boards react to a crisis in another organization by taking a course of action or proposing a solution to a problem you don’t have.

Nonprofit and non-governmental organizations are required to meet many statutory and regulatory requirements. For some activities, NPOs and NGOs are more heavily regulated than other types of organizations. This chapter explores some of these issues.

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