In late June, the New York state legislature passed legislation designed to reform the statutory requirements for governance of nonprofit organizations – both not-for-profit corporations and wholly charitable trusts. It also would expand the Attorney General's enforcement powers and modernize and clarify some of the more mechanical and procedural New York rules applicable to not-for-profit corporations.
The legislation – known as the Non-Profit Revitalization Act of 2013 – follows several rounds of review and comment from the nonprofit community and represents the largest overhaul of New York nonprofit law since 1970.
The bill awaits Governor Cuomo's signature. Although there is no indication that the Governor will not sign it, readers should continue to monitor the situation before taking steps in response to the legislation and we will send an update once the Governor acts. If the bill becomes law, most provisions would take effect July 1, 2014.
The legislature took no action on a related measure, the Executive Compensation Reform Act of 2013.
Click here for our full report, including: Overview of Applicability, Summary of the Bill's Governance Requirements, Summary of the Bill's Financial Reporting Rules for Organizations Required to Register to Conduct Charitable Solicitations, and Highlights of the Bill's Update of the Not-for-Profit Corporation Law and Expansion of the Attorney General's Enforcement Powers.
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