takeeffectJuly1：七月一日生效.pdfVIP

Volume 37 | Issue 80 | June 25, 2014 Significant changes to New York not-for-profit laws take effect July 1 The Nonprofit Revitalization Act of 2013 makes substantial changes to long-standing laws that have governed not-for-profit organizations operating in the state. The law seeks to ease administrative burdens on not-for-profits while strengthening governance and financial oversight requirements. Key reforms include new conflict-of-interest and whistleblower protections and a streamlined approval process for corporate transactions. Not-for-profit organizations and their trustees will want to make all changes necessary to ensure compliance when most of the new law’s provisions take effect on July 1, 2014. In this article: Background | Governance | Financial oversight | In closing Background The Nonprofit Revitalization Act of 2013 (Act), enacted on December 18, 2013, made the first significant changes to the state’s Not-for-Profit Corporation Law (N-PCL) in more than 40 years. It includes reforms that reduce administrative burdens on not-for-profits while enhancing their governance and oversight. The Act affects not- for-profit organizations incorporated or doing business in New York, including charitable and non-charitable entities. Governance The Act requires all not-for-profits to adopt conflict of interest policies and larger organizations to put whistleblower policies in place. In All not-for-profits must addition to tightening the related party transaction rules, the Act adopt conflict of interest imposes new measures to ensure board independence and restrict the policies, and those with at ability of interested parties to set their own compensation. It also least 20 employees and simplifies board operations by permitting email notices and consents, more than $1 million in