New York Nonprofits: Time to Get Your Conflicts and Whistleblower Policies in Place

Title:
New York Nonprofits: Time to Get Your Conflicts and Whistleblower Policies in Place
Publication:
The July 2014 Riker Danzig Tax and Trusts & Estates Update
Attorneys:
Practices:

In our January 2014 Tax and Trusts & Estates Update, we discussed several key provisions of the New York Non-Profit Revitalization Act of 2013 (see http://www.riker.com/publications/new-york-amends-nonprofit-requirements).  For the most part, that Act took effect on July 1, 2014.

As a result, all not-for-profit corporations formed under New York law, and all charitable trusts subject to New York law, are now required to have in place a policy governing conflicts of interest that is “substantially consistent” with the requirements of the Act.  In addition, New York not-for-profit corporations and charitable trusts with 20 or more employees and annual revenue in excess of $1 million must now have in place a “whistleblower policy” to protect from retaliation those who report suspected improper conduct.  As of January 1, 2015, an employee of a New York not-for-profit corporation may not serve as the chair of the corporation’s board.

Feel free to contact us if your organization needs to adopt a conflicts or whistleblower policy that meets the requirements of the Act, or if you have any questions or concerns about whether your existing policies meet the Act’s requirements.