June 2000

State Charities Bureau Representatives Meet with Society Committees

On April 25 William Josephson, assistant attorney general and head of the New York State Charities Bureau, spoke at a joint meeting of the NYSSCPA Not-for-Profit Organizations and Exempt Organizations committees. Joining Josephson were Karin K. Goldman, assistant attorney general and charities registration section chief, and Martin Goldband, the bureau's chief accountant.

Josephson said that one of the bureau's priorities is to encourage the state legislature to pass a proposed bill to amend Article 7-A of the Executive Law and Article 8 of the Estates, Powers, and Trust Law. He stated that many provisions of the current laws are cumbersome, duplicative, and difficult to apply; for example, he said he particularly wants to simplify provisions for dissolutions of charitable organizations and revise certain donor regulations to release restrictions on endowments.

Josephson also discussed consolidated financial statements, appropriation of endowment appreciation, and electronic filing. He acknowledged that the bureau's current registration process is very low-tech, and he said that automation through electronic filing is ongoing but will take considerable time and effort. He encouraged input from Society members.

"We need each others' help in this area," Josephson said.

Goldman said that as part of the bureau's effort to simplify and streamline the filing and fee structures and make them more user-friendly, the bureau is operating as if some provisions of the proposed bill have already been passed. She noted that although the proposal includes raising fees, the state has not increased fees in more than 20 years. She also pointed out that the bill eliminates double fees for dual-filers and includes a provision to create a fund from fees collected to improve bureau operations, for example, to facilitate automation through e-filing.

The Society's Exempt Organizations and Not-for-Profit Organizations committees previously had presented comments to the bureau on its draft bill that acknowledged that the nonprofit community had long hoped for the proposed increase in thresholds for requiring audits and reviews. Goldman noted that other comments the bureau received suggested additional guidance for regulations that have not been amended in a long time. She said that the bureau is optimistically waiting for the bill's passage and then will begin to change outdated regulations.

Goldband spoke about inappropriate board appropriations of funds, including relevant New York state law and the internal controls involved.

Josephson told the audience that CPAs and their clients can obtain more guidance on various initiatives by joining the mailing list for a bulletin the bureau publishes.

Marie Arrigo, immediate past chair of the Exempt Organizations Committee, and Michael McNee, immediate past chair of the Not-for-Profit Organizations Committee, organized the joint meeting as one of several events to maximize their committees' compatible agendas. *