It’s a paradox, some in the non-profit sector say: In rough economic times, when demand for their services is highest, their ability to fund those services is at its most limited.
It is for that reason some nonprofits support changes to regulations governing the financial management of nonprofit organizations now before state lawmakers.
“The answer is [reform] is sorely needed,” said Nixon Peabody’s Michael Cooney, who represents the Rochester-based Al Sigl Community of Agencies, which serves people with special needs. “The law on this topic was adopted in 1978 and, as you can imagine, a lot has changed since then.”
Already adopted by 44 states and several U.S. territories and introduced to the New York State Legislature and Senate last year, proponents say the Uniform Prudent Management of Institutional Funds Act would make it easier for charitable organizations, churches, universities, hospitals and others to make it through tough economic times while continuing to fund important programs and services. The changes were introduced to state lawmakers last year, but were sidelined due to the ongoing battles over control of the state Senate,
Barry Hawkins, chairman of the National Conference of Commissioners on Uniform State Laws, said recently. The conference has organized a nationwide push for the law, proponents of which are hopeful they’ll see its passage again this year.
The proposed law would update a range of provisions within New York’s current statutes, which would bring the law in line with the rest of the country, Hawkins said. Chief among the new provisions would be several that allow non-profits more flexibility to continue to paying for necessary community services in tough economic times. Another would allow organizations to modify the purpose to which funds originally were set aside when such a change becomes appropriate, Hawkins said.