Updated Reporting Requirements for NY Tax-Exempt Organizations

By Eitan Balloul, Tax Manager, Not-for-Profit

In November of 2021, Governor Kathy Hochul of New York signed bill A1141A/S4817A to repeal NY Executive § Law 172-b. This law required certain exempt organizations who were registered with the New York State Attorney General (Department of Law) to submit an additional filing with the New York Department of State.

Executive § Law 172-b became effective on January 1, 2021, and to many Exempt Organizations, it meant the burden of filing the same information with both agencies. There was some concern that the New York Department of State did not intend to keep certain schedules and donor information confidential due to the assumption that disclosing donors’ identities would discourage donations to 501(C)(3) organizations by potential donors who prefer to remain anonymous.

The repealed requirement applied to most Exempt Organizations, specifically the following:

  • Exempt Organizations that were registered under Article 7-A with The New York Attorney General, which solicit contributions in New York
  • Exempt Organizations that already filed an annual Form Char 500 with the New York Attorney General
  • Exempt Organizations that are required to submit an accounting report along with their filing (Review or Audit report when Revenue exceeds the threshold)

Under Executive § Law 172-b, those Exempt organizations would have had to file the Form Char 500 and Federal Form 990 with the Attorney General, as well as submit a copy of those filings to the New York Department of State.

Now that Executive § Law 172-b has been repealed, most Exempt Organizations will only be required to file annually with the New York Attorney General, which has enforcement authority over Exempt Organizations in the state. In addition, bill A1141A/S4817A repealed the requirement to publish donor information contained on Schedule B of the IRS Form 990.

If you need more assistance or additional information please contact Diana Miller, Partner and/or Eitan Balloul, Tax Manager.

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