Nonprofit Revitalization Act of 2013

more+
less-

New York's Nonprofit Revitalization Act of 2013, signed into law by Governor Cuomo in December 2013, will become effective on July 1, 2014. The Act makes several major changes and additions to New York's Not-for-Profit Corporation Law (NPCL) and other New York statutes governing non-profit corporations and charitable trusts, including the Estates, Powers & Trusts Law. This article provides a comprehensive, section-by-section overview of the substantive changes to enumerated sections of the NPCL and related New York statutes under the Act.

The following is a comprehensive, section-by-section overview of the substantive changes to enumerated sections of the NPCL and related New York statutes under the Act.

NPCL sections 102 and 201 (amendments) (A.8072 §§ 29, 38)

• Eliminates corporate “types” A, B, C, and D, creating instead two categories of corporations: “charitable corporations” (corporations having purposes that are charitable, educational, religious, scientific, literary, cultural or for the prevention of cruelty to children or animals) and “non-charitable corporations” (corporations formed under the NPCL, other than charitable corporations)

• “Grandfathers” nonprofits that have already formed as a particular type by providing that former Type A corporations will be non-charitable; former Type B and C corporations will be charitable; and former Type D corporations formed for charitable purposes will be charitable, with all other Type D corporations being non-charitable; and provides that corporations formed for both charitable and non-charitable purposes will fall into the new charitable category

• Adds definitions of “entire board,” “affiliate,” “independent auditor,” “independent Director,” “relative,” “related party,” “related party transaction,” and “key employee” for purposes of the NPCL.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.