The Nonprofit Revitalization Act's New Annual Filing Requirements
On December 18, 2013, the Nonprofit Revitalization Act of 2013, proposed by the Attorney General, was enacted. The Act made the first significant changes to the Not-for-Profit Corporation Law ("N-PCL") in decades. It includes reforms that reduce burdens to nonprofits and enhance governance and oversight of nonprofits. The Act is based on recommendations made to the Attorney General in the February 2012 report of the Leadership Committee on Nonprofit Revitalization, which he convened to identify ways to reduce burdens on nonprofits and enhance New York's nonprofit sector.
Among the provisions that reduce burdens on nonprofits are sections of the Act that raise the revenue thresholds that trigger the requirement to file an independent certified public accountant's audit or review report. Revenue thresholds requiring an audit will, over the next seven years, be raised from $250,000 to $1,000,000. This change will result in significant savings to organizations that previously were required to file audits.
The new filing thresholds will be applied to organizations whose annual financial reports are due on or after July 1, 2014, whether the date due is the initial filing deadline or an extended deadline. Please consult our instructions for information on how to request an extension.
The information posted below has been prepared to familiarize nonprofits with the changes to the law. It is not intended to serve as a substitute for legal advice from an attorney, but is designed to help organizations and their attorneys understand the statutory requirements.
- Report of Leadership Committee on Nonprofit Revitalization
- Additional Guidance and Publications from the Charities Bureau