One year has passed since the Nonprofit Revitalization Act, the most sweeping reform of New York’s nonprofit laws in decades, took effect, and the early indicators are positive. Nonprofits are adapting to the new statute, implementing necessary governance reforms while benefiting from a more streamlined and modernized regulatory framework. Helpful guidance from the Attorney General’s Charities Bureau and some recent amendments, passed but not yet signed into law, will further aid the transition. But the real test is still to come: Will the cultural change within boardrooms that the new law was intended to prompt be realized?

The Nonprofit Revitalization Act seeks to transform the traditional nonprofit governance paradigm. Deferential and passive nonprofit boards no longer comport with evolving expectations of fiduciary responsibility. Increasingly, donors, regulators, the media and the public expect that nonprofit boards are actively engaged in overseeing funds and assets entrusted on their watch. The Madoff fraud, the fiscal crises and the numerous scandals splashed across the front pages in recent years highlight not just the importance of board oversight but the often profound consequences of failing to provide it. The lesson learned is that nonprofit boards must be positioned to spot issues before they turn into problems—to spot the yellow flags before they turn red. Because once the flag turns red, it is often too late.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]