On Nov. 28, Gov. Andrew Cuomo signed into law a Nonprofit Revitalization Reform Bill, Chapter 466 Laws of 2016, that will strengthen the regulation and operation of nonprofit organizations in New York in many ways while also helping the communities they serve. The timing could not be better. In the current national political climate, nonprofits are likely to be called to provide new levels of support in multiple areas, including protection of civil rights, delivery of social services, immigration enforcement, family planning, and more.
Part of the law relating to board chairs goes into effect on Jan. 1, the remainder on May 27. The measure will introduce major improvements in many areas of nonprofit governance. For example, it will help ensure that board members are more familiar with, and responsible for, their organization’s policies and procedures regarding conflicts of interest and whistleblower complaints. It will bar any person who is the subject of a whistleblower complaint from involvement in handling that complaint, and creates new levels of legal liability for individuals who abuse nonprofit assets for personal gain, even when they do not serve as an officer, director, or employee of the organization.
