The Sarbanes-Oxley Act, an attempt to reform publicly traded companies that suffered from a series of scandalous failures in the late 1990's, did not apply to nonprofit organizations. Several high-profile scandals which occurred in the nonprofit sector between 1996 and 2002 led lawmakers to make several unsuccessful attempts at mandating that the Sarbanes-Oxley Act apply to nonprofit organizations. In 2007 using the regulatory power of the IRS (Internal Revenue Service), a redesigned Form 990, "Return of Organization Exempt from Income Tax," had emerged as a means to enhance the transparency and accountability of nonprofit sector organizations. This revised form 990 is based on the principles of the Sarbanes-Oxley Act, but is perhaps too onerous and expensive for small and midsized nonprofit organizations. Further complicating this issue are the low reporting thresholds of this new regulation. Anecdotal evidence indicates that such low reporting thresholds negatively impact these small and midsized nonprofit organizations. Targeting Pennsylvania nonprofit organizations, the research carried out in this study sought to discover what impact, if any, the revised IRS Form 990 has had on nonprofit governance, and to what degree nonprofit sector organizations have adopted the control mechanisms outlined in the Sarbanes-Oxley Act as a result of this increased IRS scrutiny. The research findings showed that organizations with more employees and larger budgets have adopted many of these stronger governance mechanisms, such as formal mechanisms for assessing, documenting, and evaluating their internal controls. Forty-four percent of organizations overall have changed the structure of their audit committee in reaction to the revised IRS Form 990. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]