NYCON staff members get questions every week about implementing the nuances of the new law governing us all (Nonprofit Revitalization Act). In this column we will be answering our members questions about governance, compliance, committee structures and much more.
Q: We are a nonprofit hospital chartered under the nonprofit laws as a corporation with religious purpose. Do the audit requirements (and conflict/whistleblower requirements) apply to us? Our revenue does exceed $1 million.
A: Michael West, Esq., NYCON's Senior Legal Advisor Responds: If your organization is exempt from NYS filing requirements under Section 172-A of the Executive Law because it’s a Religious Corporation, or otherwise has faith-based purposes, it is also exempt from auditing requirements imposed by the Nonprofit Revitalization Act. Otherwise, with limited exceptions (basically, those applicable to notice requirements under Section 605 of the Not-for-Profit Corporation Law), all other NPRA requirements are equally applicable to both Not-for-Profit and Religious Corporations, including those relative to conflicts of interest and whistleblower protection.
April 15th, 2015 feels like a good time for a finance question...
Q: Is there anything specifically barring a treasurer from being chair of the audit and finance (A&F) committee?
A: Michael West, Esq., NYCON's Senior Legal Advisor Responds "No, assuming the Treasurer is an Independent Director, he/she can serve as an A&F Chair. The Treasurer/A&F Chair prohibition is only an often-recommended best practice, not a legal requirement."
Doug Sauer, NYCON's CEO, notes:
The reasons why it is a best practice are following...
April 2nd, 2015
Q: Are there exemptions for Chartered Organizations under NPRA?
A: NYCON is proud to have many arts, cultural and museum institutions among our members. Recently we were asked if there were exceptions to the new Nonprofit Corporation Law (NPRA) for Chartered Organizations, such as museums.
Michael West, Esq., NYCON's Senior Legal Advisor Responds: "NPRA obligations are binding not only on Not-for-Profit Corporations, but charted educational institutions, in virtually all instances. There are a limited number of exceptions, but none are material with respect to governance--most relate to structural issues (formation, merger/consolidation and dissolution) or property transfers (including those application to collections). And, there certainly aren't specific carve-outs for museums. If you have a 501(c)(3), the NPRA, basically, applies to you."
January 20th, 2015
Q: The New Rules for Nonprofit Audits under the NPRA
Are the new rules for audit thresholds confusing you too? We get a lot of questions about how to go about determining what kind of review or audit our nonprofit members need. Here is a guide for New York nonprofits from the Attorney General's Charities Bureau. If you have questions and are a NYCON Member, please contact us.
Attorney General Eric Schneiderman
Guidance Document 2014-1
Issue date: April 15, 2014
The newly enacted thresholds and the annual filing fees are as follows: http://www.charitiesnys.com/pdfs/NYSGuidance2014_Audit%20Thresholds%20and%20Fee.pdf
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