New York Attorney General Eric Schneiderman announced plans on Tuesday to reform cumbersome laws and regulations burdening the state’s charities in a bid to ease what he called a looming funding crisis.
… U.S. tax authorities grant groups charitable status, exempting them from taxes, but most laws governing nonprofits are at state level from the attorney-general.
Schneiderman said that if a charity received funding from six city or state agencies it could be subject to six separate audits. Nonprofits in New York with revenues of more than $250,000 also have to conduct annual audits, while in other states such as California the threshold is $2 million.
… “New York’s statutory requirements governing charities are so burdensome that one leading not-for-profit lawyer has stated that it is essentially malpractice to advise a not-for-profit client to incorporate in New York,” Schneiderman told the nonprofit Association for a Better New York.