In late June 2013, the New York state legislature passed the Nonprofit Revitalization Act of 2013 (NRA), which marks the first overhaul of New York’s charities laws in more than 40 years. The legislation grew out of the Feb. 16, 2012 report to Attorney General Eric Schneiderman by the Leadership Committee for Nonprofit Revitalization, a blue-ribbon panel appointed by the attorney general. The Revitalization Act encompasses many of the committee’s recommended improvements to update statutory provisions applicable to nonprofits and charitable trusts.
Attorneys who advise either officers and directors of charities or those who serve on boards of nonprofits should take note of this important piece of legislation. The changes will affect virtually every nonprofit corporation and wholly charitable trust in New York state that are governed under Not-for-Profit Corporation Law (NFPCL) and the Estates, Powers and Trusts Law (EPTL). The bill is awaiting action by Gov. Andrew M. Cuomo and, if enacted, would take effect on July 1, 2014.
