For the first time in 40 years, New York has adopted major revisions to its Not-for-Profit Corporation Act that could impact all domestic and foreign corporations in New York, as well as those entities required to register in New York for charitable solicitation purposes regardless of where they are incorporated. The Act’s major objectives are to ease the obstacles and burdens to incorporation and operation in New York, while enhancing public confidence in not-for-profit corporations and strengthening the state’s enforcement powers. With certain exceptions, the provisions of the Non-Profit Revitalization Act of 2013 (“Act”) went into effect July 1, 2014. Organizations impacted by the legislation will need to review their organizational documents and internal policies to ensure compliance. As more fully set forth below, the Act amends the financial reporting obligations, incorporates provisions affecting internal corporate governance and state filings, and imposes requirements for adopting written policies and handling related party transactions.
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