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 Nonprofit 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 Nonprofit 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 Nonprofit 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.
