Over the summer, we posted about Bill No. A. 10365B/S. 7913, containing amendments to the New York Not-for-Profit Corporation Law (the “NPCL”) and the New York Estates, Powers and Trusts Law (the “EPTL”) here. After introduction in May and passage by both houses in June, the bill was delivered to the Governor earlier this month and signed into law on November 28.
As noted in our June blog post, some of the changes contained in the bill should be helpful for nonprofits. For example, the exclusion of de minimis and certain “ordinary course” transactions from the related party transaction rules should reduce the compliance burden for nonprofits. However, the implications of certain other changes – for example, replacing “key employee” with “key person” in the definition of related party – are not immediately clear.
