The New York State Legislature recently passed the New York Nonprofit Revitalization Act of 2013 (“Act”) to overhaul the state’s non-profit laws, in the first major revision in more than 40 years. If signed into law, the Act is expected to go into effect July 1, 2014. The Act aims to eliminate administrative red tape that is confusing and burdensome to non-profits and that often prompts New York–based non-profit organizations to incorporate in another state with more favorable laws, such as Delaware.
This Russell Practice Note discusses the changes, implications, and potential actions required for non-profit organizations following New York’s legislative changes to non-profit corporation law.