Former New York governor Eliot Spitzer applauded nonprofit organizations and emphasized the importance of government regulation yesterday at an SCPS event titled "Charities on Trial: Do We Need More Regulation?"
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As part of the one-day conference held by the Heyman Center for Philanthropy and Fundraising, Spitzer said the nonprofit sector is the "most vibrant, most exciting, most innovative sector we've got."
According to Spitzer, not enough attention is paid to the non-for-profit sector.
"For the past two years, we've been glued to the business pages as one cataclysm follows another," Spitzer said. "What you have succeeded in doing in the not-for-profit sector is quite remarkable."
Spitzer also noted that because America has a larger not-for-profit sector than Europe does.
"We have in this nation the underlying belief that government is to be a limited creature," he said. "We also have, on the other hand, a sense among us as individuals that we have to do something for those in need."
The former governor also stressed the downfalls of self-regulation, saying market pressure is forcing organizations to place profits over conduct. Spitzer said that the power to enforce regulations lies within the government.
"Try to think back to the last time an organization turned itself in to an authority," he said.
Self-regulation in the nonprofit sector is difficult because the boards are rarely involved in day-to-day management of the business.
"When boards are detached and there are no shareholders, who then steps in to ensure that there is going to be loyalty to the objective and mission of the organization?" Spitzer asked.
The conference exceeded the expectations of Marian Stern, adjunct assistant professor and senior staff member at the Heyman Center.
"There continues to be need for debate over nonprofit regulation and ethics," she said. "This conference is an excellent starting point."
