Change is likely on the horizon for the more than 100,000 nonprofits in New York. The Nonprofit Revitalization Act was passed by the New York State Senate on June 20th. The bill, which has been sent to the state Assembly, would “for the first time in 40 years – overhaul state laws that govern charities and other not-for-profit organizations.”
Some of the specifics of the Nonprofit Revitalization Act include:
- Increasing the use of fiscal audits by nonprofits (Nonprofit Quarterly)
- Require that nonprofits act upon the findings and recommendations of audits
- Ease the process of nonprofit incorporation
- Require that nonprofits adopt written “conflict of interest” policies, as well as require that nonprofits employing 20 or more with over $1 million in annual revenue to adopt “whistleblower” policies
- Prohibit nonprofit CEOs, as well as other employees, from serving as a Chair for the organization’s board “in an effort to maintain distinct lines of accountability between management and the board.”
If enacted, the most changes outlined in the Nonprofit Revitalization Act would not go into effect until January 1, 2014. And as these would be the first changes to nonprofit legislation in four decades, “the new laws would likely require some revisions to New York nonprofit corporations’ organizational documents.”
It will be interesting to see how these new laws come into play if enacted. Share your thoughts on the potential changes with us in a comment below.
Nonprofits in New York and beyond in need of insurance can contact Lamb Financial Group for assistance. We offer insurance options from a number of carriers, as well as programs exclusive to our company. Call us today at 1-866-481-5262 to learn more. Let us help you find the right policies for the needs of your organization.