Alert: Executive Law 172-B Repealed, Ending Redundant Filings for Nonprofits

By Magdalena M. Czerniawski  |  November 15, 2021

Alert: Executive Law 172-B Repealed, Ending Redundant Filings for Nonprofits

On Friday, November 12, Gov. Kathy Hochul of New York signed S4817a/A1141a to repeal Executive Law 172-B, which had required certain organizations – including charitable and nonprofit organizations – registered with the New York State Attorney General (AG) to also file documents with the New York Department of State (DOS). Executive Law 172-B had been strongly opposed by many in the nonprofit community as redundant and burdensome as it required organizations to refile much of the same information that they were already filing with the New York State Charities Bureau with the DOS.

The repealed requirement had applied to most charitable organizations, specifically those that are:

  • Registered with New York Charities Bureau because they solicit contributions in New York, i.e., registered under Article 7-A,
  • Already filing an annual Form Char 500 with the New York Charities Bureau,
  • Required to submit an accounting report along with its filing, i.e., charities with gross revenue of $250,000 or more.

Originally, those organizations would have had to file the Form Char 500 and Federal Form 990 with the AG as well as submit a copy of those filings to the DOS. Now that Governor Hochul has repealed the law, nonprofits will only be required to file annually with the Charities Bureau, which has enforcement authority over the sector.

The original extension deadline for those who were required to file was today, Monday, November 15. The state has not issued any further guidance, but Marks Paneth will be watching for any updates.

Marks Paneth will continue to monitor developments and will provide updates as they become available. Please contact Magdalena Czerniawski, Partner, Nonprofit, Government & Healthcare Group, or your Marks Paneth advisor if you need additional information or assistance.

About Magdalena M. Czerniawski

Magdalena M. Czerniawski Linkedin Icon

Magdalena M. Czerniawski, CPA, MBA, is a Partner at Marks Paneth LLP and a member of the firm’s Nonprofit, Government & Healthcare Group. With over 15 years of nonprofit industry experience, she provides tax services to a wide array of nonprofits, including charitable organizations, schools, social welfare organizations, affordable housing entities, professional associations, private foundations, healthcare organizations and hospitals. In addition to providing tax compliance services, Ms. Czerniawski also provides tax planning and advisory services.... READ MORE +

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