On Thursday, December 19, Governor Cuomo signed the New York Non-Profit Revitalization Act of 2013 which aims to reduce burdens on the nonprofit sector while strengthening governance and accountability. The provisions of the new law include:
- Audit filing requirements and audit oversight procedures
- Governance requirements (conflict of interest policy, related party transactions, whistleblower policy, electronic board and member activities)
- Corporate transactions (mergers, real estate transactions, dissolutions)
- Incorporation procedures (elimination of Types, administrative agency consents)
- Enhanced Attorney General powers
The Act applies to nonprofit organizations incorporated in New York, New York charitable trusts, and organizations that solicit charitable contributions in New York, regardless of the state of incorporation. Our summary details the provisions relating to the various covered entities.
The Act requires many New York not-for-profit organizations and charitable trusts to adopt governance policies, including a conflict-of-interest and whistleblower policy. It also requires nonprofit organizations that solicit charitable contributions in New York (whether or not they are incorporated in New York) to adopt audit committee oversight procedures. While many organizations may already have these documents in place, we recommend a review of your current bylaws, governance policies, and procedures, and either a revision or replacement to ensure compliance when the Act comes into effect.
