NY Not-for-Profit Corporation Act to Be Amended Again

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A further amendment to the Non-Profit Revitalization Act of 2013 has been adopted by the NY State legislature and the legislation is expected to be signed by the governor.  See the Lawyers Alliance for New York memo of June 22, 2016.  Among other things, “independent director” will now be defined on a sliding scale:  a director cannot be independent if the transaction exceeds the lesser of $10,000 or 2% of consolidated gross revenues (“CGR”) and the firm’s CRG was less than $500,000; $25,000 if the CGR was between $500,000 and $10 million; and $100,000 if the CGR was $10 million or more.