“The Nonprofit Revitalization Act of 2013 Will Require Many Changes for Existing New York-Formed Nonprofit Corporations”
The New Year brought with it an important new law for New York nonprofits: the Nonprofit Revitalization Act of 2013 (the “Revitalization Act” or the “Act”), signed into law by Governor Andrew Cuomo on December 18, 2013. The Revitalization Act – which affects all existing New York-formed not-for-profit corporations, whether or not charitable, as well as charitable trusts – makes significant and needed changes to the New York Not-for-Profit Corporation Law (the “N-PCL”), Estates, Powers and Trust Law (the “EPTL”), Executive Law, and other New York State laws. Most of the Act’s provisions become effective on July 1, 2014.
This Stroock Special Bulletin focuses on some of the ways in which the Revitalization Act will ease burdens faced by existing New York-formed not-for-profit corporations and, in certain instances, charitable trusts, including by increasing the thresholds for audits, allowing electronic notices and consents, and relaxing the high vote requirements for real estate transactions. It also examines changes that the Act will impose on the governance practices of New York-formed nonprofits, such as enhanced requirements for related-party transactions, requiring all such nonprofits to have conflict of interest policies, and requiring larger nonprofits to have audit committees and whistleblower policies.