New York State promotes flexibility in updates to nonprofit laws

New York State promotes flexibility in updates to nonprofit laws

On Behalf of | Apr 26, 2023 | Non-Profit Organizations

The legal landscape nonprofit organizations face is always in flux. So, it is good to keep abreast of changes in nonprofit law that might affect your organization. The following are some developments in nonprofit law in New York that provide nonprofit organizations in the state with greater flexibility in leadership and management.

Developments in New York nonprofit law

Leaders of nonprofit organizations in New York are now permitted to hold votes outside of meeting times, if all of their voting members acquiesce to such actions. Consent can be given physically, in writing or via email. The aim of this law is to make voting more efficient for nonprofit organizations.

In addition, a quorum can be satisfied if a director was at a meeting but did not vote because of a conflict of interest. In such situations, the director is deemed present when votes were cast, meaning the requisite quorum has been met and the vote was lawful and effective.

Also, directors of nonprofit organizations in New York who are elected or appointed to fill a vacancy can serve their full term. Previously, directors filling a vacancy could only stay in that position until the next yearly meeting in which directors are elected, unless the organization’s bylaws say otherwise.

Hopefully, these developments will help nonprofit organizations that have been struggling in recent years. Flexibility can be key to good leadership and management of any organization, including nonprofits. It is up to directors of nonprofit organizations to ensure they are complying with all changes in nonprofit law, so that their organization is not adversely affected by their actions.