Time to Update Your Corporate Bylaws?
New York Gov. Andrew Cuomo signed the New York Non-Profit Revitalization Act of 2013 (Act), into law in December 2013, thereby adopting important changes to the governance of nonprofit entities that will go into effect on July 1, 2014. The Act attempts to modernize the existing New York Not-for-Profit Corporation Law (NPCL) by removing some of the burdens imposed on the nonprofit sector, while simultaneously improving oversight and governance. The Act affects not-for-profit organizations incorporated or doing business in New York State, including both charitable and non-charitable entities, both of which are required to make changes necessary to comply with the new NPCL.
Significant Changes to the NPCL
The Act sets forth numerous changes to the NPCL, the most significant of which are:
The changes described above are the major aspects of the reforms made to the NPCL. Careful review of the full Act is recommended and revisions to corporate by-laws and other policies and procedures of a New York not-for-profit corporation may be necessary. The Act is the first major overhaul of the NPCL in approximately 40 years and will hopefully improve the provisions of the NPCL that are thought to be outdated and burdensome.