
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm Insights
Author: Dan Brecher
Date: June 16, 2021
Counsel
212-286-0747 dbrecher@sh-law.comIn the height of the COVID-19 pandemic, the State of New York quietly amended Sections 172-B, 172-E, and 172-F of the state’s Executive Law to establish heightened reporting requirements for charitable tax-exempt organizations. Effective January 1, 2021, certain New York nonprofits must file an annual financial report, a funding disclosure report, and/or a financial disclosure report.
To implement the amended laws, the Department of State issued a notice of proposed rulemaking on February 3, 2021. Below is a brief summary of the new disclosure obligations:
The Annual Financial Report must be filed with the Department of State on or before the fifteenth day of the fifth calendar month after the close of the charitable organization’s fiscal year. So, if a covered entity’s fiscal year ends on August 31, that entity is required to file its Annual Financial Report on or before the following January 15. If the covered entity’s fiscal year ends on December 31, the entity is required to file its Annual Financial Report on or before the following May 15.
The Funding Disclosure Reports and Financial Disclosure Reports must be filed with the Department of State within 30 days of the close of a reporting period. “Reporting period” is defined as the six-month period within a calendar year starting January 1st and ending June 30 or the six-month period within a calendar year starting July 1 and ending December 31.
Reports must be filed online through the Department of State’s Charitable Organization Financial Reporting System. The fee for filing a financial report with the Department of State is $25. Filers need a NY.Gov account to file a report through the Department’s Charitable Organization Financial Reporting System.
If the funding or financial activity described in a covered entity’s Financial Disclosure Report is inconsistent with the charitable purposes of the entity, the report will be published on the Department of State’s website. The published materials will not include the names and addresses of individual donors to covered entities, or the covered entity’s IRS Form 990 Schedule B. The published report may not be made public pursuant to Executive Law Section 172-f if, based upon a review of the relevant facts presented by the covered entity, such disclosure may cause harm, threats, harassment, or reprisals to the source of the donation or to individuals or property affiliated with the source of the donation. The covered entity may appeal the Department’s determination.
Executive Law Section 93-a provides that whenever the Secretary of State, in consultation with the Department of Taxation and Finance or the Department of Law, determines that the nature and extent of a covered entity’s in-kind support to other entities or the nature and extent of a covered entity’s spending on covered communications is inconsistent with the charitable purposes of such covered entity, the Secretary must publish the financial reports, including Annual Financial Reports, on the Department of State’s website. However, any published materials may not include the names and addresses of individual donors to covered entities or covered entity’s IRS Form 990 Schedule B.
If you have questions or if you would like to discuss the matter further, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!