New Jersey Considers New Requirements for Sports Nonprofits

Legislation recently introduced in the New Jersey state legislature would require youth sports nonprofits to comply with several new financial procedures to prevent embezzlement and help parents understand what is going on in their local leagues.  Among the bill’s requirements for youth sports nonprofits:

  • Electronic publication of meeting agendas, minutes, and a host of financial documents including audits
  • Production of an “annual report” that will also be made available publicly
  • Three signatories on any bank account
  • Insurance to cover claims against anyone handling the nonprofit’s finances
  • An annual audit

The bill was introduced by Assemblyman Ron Dancer as a means of curtailing the financial losses suffered by local youth sports nonprofits in recent years.  The bill’s introduction notes that in Monmouth and Ocean county leagues alone, over $1.4 million has been stolen over the past ten years.

Around the country, various levels of government have taken note of the financial challenges (and other unfortunate behaviors) faced by local sports leagues.  As the providers of fields and facilities for many nonprofit leagues, it is surprising that more jurisdictions haven’t enacted stricter requirements on those who use such costly public resources.

For more information, visit the SportsOrganized.Com website, which hosts resources to help youth sports organizations pursue organizational excellence.  Or drop us a line at with any questions, comments or suggestions you might have.  We especially love to hear from organizations about best practices that work well.  Share your knowledge with others!