Nonprofit Revitalization Act passes NYS Legislature

The NonProfit Times recently wrote about the passage of the Nonprofit Revitalization Act by the NYS Legislature:

A bill that would reform the laws governing nonprofits in New York unanimously passed both houses of the state’s legislature. It now awaits a signature from Gov. Andrew Cuomo before it becomes law.

The legislation, called the Nonprofit Revitalization Act, was written by New York Attorney General Eric T. Schneiderman and sponsored by Sen. Michael Razenhofer (R-Amherst) and Assemblyman James Brennan (D-Brooklyn). It represents the first major overhaul of nonprofit regulations in the state in 40 years. Schneiderman hailed its passage as a victory for modernization.

The Nonprofit Revitalization Act was born out of the suggestions from the Leadership Committee on Nonprofit Revitalization, a task force of 32 representatives from the nonprofit sector that was created by Schneiderman. Many of the group’s suggestions made its way into the final draft of the law, which makes the following reforms:

Nonprofits will be permitted to use email and video technology for meetings;
Boards will be able to delegate the approval of small transactions;
Procedures for mergers, property sales, and corporate dissolutions will be streamlined;
Boards will be required to perform active oversight over financial audits;
Nonprofit employees will no longer be able to serve as the chair of the board; and,
Nonprofits will be able to enter transactions without having to go to court.

Click on links to:
The full article
Summary of the Provisions of the Nonprofit Revitalization Act (A.8072 / S.5845) from the Office of the Attorney General (PDF file)
The legislative history and full text of the act.