Farrell Fritz partner Lou Vlahos recently issued an important advisory report addressing the New York Nonprofit Revitalization Act of 2013 (the “Act”). Nonprofit corporations in New York will need to comply with many of the Act’s provisions by July 1, 2014.
Major new requirements include:
-the adoption of conflict of interest and whistleblower policies;
-creation of an audit committee composed of independent directors; and
-adherence to guidelines regarding related party transactions.
Many of these provisions turn best governance practices into statutory mandates.
Nonprofits are advised to consult with legal counsel familiar with the Act’s requirements. New policies may need to be developed, and corporate bylaws may need to be amended, in order to comply with the new law.