Nonprofit Revitalization Act Signed

By:
ROBERT BUSWEILER
Published Date:
Jan 14, 2014

Governor Andrew Cuomo signed the Nonprofit Revitalization Act into law on Dec. 18. The bill, the first major overhaul of the state’s charities laws in more than four decades, was overwhelmingly passed by both the State Senate and Assembly before the legislative session ended in June.

For more than two years, the Society’s Not-for-Profit Organizations Committee, Legislative Task Force and Board of Directors worked together on submitting technical comments to State Attorney General Eric T. Schneiderman’s office and to the bill sponsors State Senator Michael Ranzenhofer (R-61) and Assemblyman James Brennan (D-44). Society Representatives also testified at two of the bill’s three public hearings which were held before the State Senate and Assembly’s Corporations, Authorities and Commissions committees.    

“The Not-for-Profit Committee has not only followed, but also played a proactive role in the development and final stages of the Nonprofit Revitalization Act,” said David M. Rottkamp, chair of the Not-for-Profit Organizations Committee. “We are proud to have been a part of the process of getting the billed passed and look forward to continuing to help the Nonprofit community prosper in New York.”

Items the Society advocated for that were included in the bill include:

• Additional organizational and financial guidance and simplification measures

• Modernization efforts aimed at streamlining the operations of not-for-profit organizations with regards to reporting and filing requirements

• An increase the in the audit requirement threshold from $250,000 in annual revenue to $500,000 (with scheduled increases to $750,000 in 2017 and $1 million in 2021)

• Strengthened conflict-of-interest and whistleblower policies

• An increase in the response timeframe for additional audits requested by the State Attorney General’s office from 60 days to 120 days

The Society’s letter in support of the bill, which was sent to Governor Cuomo, can be found online at www.nysscpa.org/pdfs/nfp.pdf. Video of the Society’s testimony in front of the State Senate and Assembly can also be found online:

• Albany hearing: www.nysenate.gov/event/2013/may/22/examine-re-codification-new-york-state-s-not-profit-corporation-law-effort-reduce-

• New York City hearing: www.nysenate.gov/event/2013/may/24/examine-re-codification-new-york-state-s-not-profit-corporation-law-effort-reduce-

A copy of the bill is shown at http://open.nysenate.gov/legislation/bill/A8072-2013.      

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