Requires not-for-profit corporations have a board of directors which reflects the ethnic demographics of the communities that they serve to be able to receive state funds.
Summary
This bill would amend the New York Not-for-Profit Corporation Law to make eligibility for state funding contingent on a not-for-profit corporation’s board of directors reflecting the ethnic demographics of the communities it serves. In practical terms, a nonprofit would need to demonstrate that its board composition is representative of the community’s ethnic makeup in order to accept state funds.
The bill applies broadly to not-for-profit corporations that receive state money, and it would take effect one year after becoming law. It does not create a detailed enforcement mechanism in the text provided, but it would add a new statutory condition tied to state funding and board composition, potentially affecting nonprofit governance, grant eligibility, and state contracting relationships.
Impact
The bill would amend Section 701 of the Not-for-Profit Corporation Law by adding a new requirement that nonprofits receiving state funds have boards that reflect the ethnic demographics of the communities they serve. This would create a new legal condition for state-funded nonprofits and could influence board recruitment, governance policies, and compliance practices across affected organizations. Because the bill ties funding eligibility to demographic representation, it could also affect how state agencies evaluate nonprofit recipients and administer grants or contracts.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the materials supplied. Based on the bill text and caption, the measure appears to be framed as a diversity and representation requirement for publicly funded nonprofits, which suggests a policy goal of aligning nonprofit leadership with community demographics. However, without discussion or vote data, the overall sentiment cannot be assessed beyond the bill’s stated intent.
Contention
The main point of contention is likely to be whether the state should condition funding on a nonprofit board’s ethnic composition and how such a requirement would be measured and enforced. Supporters would likely emphasize representation, equity, and community accountability, while critics may raise concerns about administrative feasibility, legal standards for demographic matching, and potential conflicts with nonprofit autonomy or governance practices. The bill text itself does not address these implementation questions, leaving them as likely areas of debate.
Same As
Requires not-for-profit corporations have a board of directors which reflects the ethnic demographics of the communities that they serve to be able to receive state funds.
Requires not-for-profit corporations have a board of directors which reflects the ethnic demographics of the communities that they serve to be able to receive state funds.
Requires not-for-profit corporations have a board of directors which reflects the ethnic demographics of the communities that they serve to be able to receive state funds.
Exempts persons holding the offices of public health director and director of community services of St. Lawrence county from the requirement that such person be a resident of the political subdivision or municipal corporation of the state for which such person shall be chosen or within which such person's official functions are required to be exercised.
Exempts persons holding the offices of public health director and director of community services of St. Lawrence county from the requirement that such person be a resident of the political subdivision or municipal corporation of the state for which such person shall be chosen or within which such person's official functions are required to be exercised.
Requires the board of directors of a residential cooperative housing corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.
Requires the board of directors of a residential cooperative housing corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.
Prohibits non-physician organizations or their representatives to hold majority shares in or serve as directors of professional corporations organized to practice medicine.
Prohibits non-physician organizations or their representatives to hold majority shares in or serve as directors of professional corporations organized to practice medicine.