• Nonprofit Revitalization Act of 2013 -- Best Governance Practices Made Mandatory
  • January 13, 2014 | Authors: Marsena Farris; Pamela Landman; Stephanie Marcantonio; Brian T. McGovern; Paul W. Mourning
  • Law Firm: Cadwalader, Wickersham & Taft LLP - New York Office
  • On December 18, 2013 Governor Cuomo signed into law the Nonprofit Revitalization Act of 2013 (the “Revitalization Act”), Assembly Bill Number 8072; Chapter 549 of the Laws of 2013. Intended “to reduce unnecessary and outdated burdens on nonprofits and to enhance nonprofit governance and oversight,” the Revitalization Act amends the New York Not-for-Profit Corporation Law (“NPCL”) (as well as other New York laws governing not-for-profit and religious corporations and charitable trusts, including the Education Law, the Estates, Powers and Trusts Law, the Executive Law and the Religious Corporations Law) to simplify certain corporate transactions and processes, while at the same time making mandatory various “best practices” in corporate governance that are designed to minimize the likelihood of fraud and other potential abuses by charitable organizations. The majority of the provisions will go into effect July 1, 2014. In anticipation of the changes to be made by the Revitalization Act, the Boards of corporations organized under the NPCL and other charitable organizations operating in New York will need to revise and/or adopt new by-law provisions, conflict of interest and whistleblower policies and other procedures to comply with the new requirements.