New York Attorney General Eric Schneiderman is urging the state legislature to enact two bills that would reform the
statutory requirements for governance of nonprofit organizations – both not-for-profit corporations and wholly charitable trusts. If the bills become law, they also would expand the Attorney General’s enforcement powers and modernize and clarify some of the more mechanical and procedural New York rules applicable to not-for-profit corporations.
The two bills – known as the Nonprofit Revitalization Act and the Executive Compensation Reform Act – follow several rounds of review and comment from the nonprofit community and would represent the largest overhaul of New York nonprofit law since 1970.
In their current form, the bills generally contemplate a January 1, 2014 effective date. Obviously, the results and timing of the Albany legislative process are uncertain. But regardless of the outcome in New York, the bills provide an index of regulators’ increasingly high expectations for nonprofit governance and may be a harbinger of things to come both in New York and elsewhere across the country. We will update our readers as the bills progress through the legislative process.
Click here for Highlights of Proposed Update of the Not-for-Profit Corporation Law and Proposed Expansion of the Attorney General’s Enforcement Powers.