Entrepreneurial Spirit. Independent expertise.

Non-Profit Revitalization of 2013

Ohio law currently required charitable organizations and groups that solicit contributions from Ohioans to file an annual report with the Attorney General’s Office.  Initially this report was a one page Verification of Filing form that did not require a lot of time or effort to complete.  Now with the new online system in place, there are several questions and pages of information that need filled out if you meet certain criteria.  The purpose of this online system is to portray accountability and transparency for charities in Ohio.  Because of increased monitoring of non-profit organizations, coinciding with the re-vamped Federal Form 990, it is becoming more imperative that charitable organizations stay in compliance with the ever-changing regulations.

New York is one state that is increasing their accountability of non-profit organizations with the signing of the New York Non-Profit Revitalization Act of 2013.  The act was signed into law on Thursday, December 19, 2013 and includes several new provisions that will require organizations to strengthen their governance and responsibility to the public.  Some of the enhanced regulations include the following items:

  • Audit filing requirements (financial thresholds) and audit committee oversight procedures
  • New governance requirements (conflict of interest policy, related party transactions, whistleblower policy, electronic board and member activities)
  • Corporate transactions (mergers, real estate transactions, dissolutions)
  • Simplified and streamlined incorporation procedures (elimination of types, administrative agency consents)
  • Enhanced Attorney General enforcement powers

For many organizations, this will not be something new to adopt or additional work to implement, but for the smaller non-profit charities, it could mean several more dollars spent in order to be compliant.  This specific Act includes non-profit organizations incorporated in New York, New York charitable trusts, and organizations that solicit charitable contributions in New York, whether or not they were incorporated in the state.  As increased regulations continue to unfold, it is not unlikely that a state like Ohio could adopt a similar policy as this Revitalization Act.

Download Article (PDF)