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Press Release

NY CPAs Applaud State Legislature’s Approval of Non-Profit Reform

By:
Alonza Robertson, NYSSCPA Media Relations Manager
Published Date:
Jun 24, 2013

NEW YORK – (June 24, 2013) The New York State Society of Certified Public Accountants (NYSSCPA) has endorsed the decision of the state Legislature to enact a new non-profit governance reform bill.

The Nonprofit Revitalization Act of 2013 – which was approved by both the state Assembly and Senate on Friday and is now awaiting N.Y. Governor Andrew Cuomo’s signature to become law - aims to reduce unnecessary and outdated burdens on New York nonprofits and to enhance nonprofit governance and oversight to prevent fraud and improve public trust.

“This proposal is a welcomed step for all of the state’s nonprofits,” said NYSSCPA President J. Michael Kirkland. “Many of (these groups) for years have experienced the frustration of navigating a system governed by archaic rules and regulations that drain resources from mission-critical programs, especially those providing critical social services to New Yorkers hardest hit by the recent recession.”

Many of the NYSSCPA’s 29,000 members provide services within the state’s nonprofit sector as auditors hired by these organizations, professional staff members, or through volunteer service on their boards of directors.

Introduced by state Senator Michael Ranzenhofer and state Assemblyman James F. Brennan; and endorsed by New York Attorney General Eric Schneiderman; the enacted bill represents the largest overhaul of New York nonprofit law since 1970. Many in New York’s robust non-profit sector had been spending up to 30 percent of their operating budgets conforming to state regulations, Schneiderman has said.

Members of the NYSSCPA testified before the New York State Senate and Assembly’s Corporations, Authorities and Commissions committees in May during the bill’s formal review process.

Some of the key highlights of the Act include raising the minimum gross revenue requirements that require a CPA’s audit, thus reducing the burden on smaller nonprofit organizations; allowing for electronic filing and communication standards; simplifying non-profit classifications, modernizing their financial governance rules and establishing conflict-of-interest policies and whistle-blower policies.

“The passage of the Nonprofit Revitalization Act brings a 21st century refresh to the rules and regulations that govern not-for-profits organizations in New York State,” Kirkland said. “The NYSSCPA looks forward to working with legislators and state officials in the future to further improve non-for-profit organization laws.”

ABOUT THE NYSSCPA

Incorporated in 1897 and now representing more than 29,000 CPAs, the NYSSCPA is a not-for-profit organization that represents the issues, standards and public services efforts of certified public accountants who practice in New York State; encompassing all areas of public practice, government, education, business, and industry. Visit the Society’s website at nysscpa.org for more information.