The New York Nonprofit Revitalization Act of 2013: Enhancing the Governance and Accountability of the Not-for-Profit Organization around the World

Abstract

New York Non-Profit revitalization Act of 2013 has brought sweeping and critical changes that were lagging for New York’s vital non-profit sector as there has not been any changes in four long decades. The bill was simply seeking to correspond to the prior stagnation and to bring about new rules and regulations that would enhance governance controls and accountability, regain public trust that had been heavily undermined due to the multiple fraud scandals that have occurred in the past. The most significant changes were made in reporting requirements that reduced the regulatory burdens and raised the thresholds for financial reporting and eliminated barriers to incorporation; the Act also reduced procedural hurdles for non-profit transactions and modernized the board procedures and voting requirements. The Revitalization Act of 2013 significantly improved many requirements related to the governance and accountability of the non-profit organizations. In particular the audit functions of the audit committee, as well as internal control conflict of interest and whistleblower policies.