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February 17, 2012

N.Y. State Issues Plan for Revising Oversight of Nonprofits

A legislative blueprint for overhauling the regulation of charities in New York, released  Thursday by the attorney general, would broaden the state's powers to rein in executive compensation but also offer financial assistance to struggling groups, according to The New York Times.

The plan, presented by Attorney General Eric T. Schneiderman and written with nonprofit organizations, would amend state law to give the attorney general more authority to challenge high salaries in court and proposes that charities use "independent directors" to monitor pay. It also calls for state-backed, no-interest loans to nonprofits in need and other regulations to assist charities.

The economic downturn makes it "more important than ever to make New York a hospitable environment so nonprofits can continue to carry out their vital work," Mr. Schneiderman said in a statement. "At the same time, we must maintain the public’s trust by ensuring that nonprofits are governed effectively, and with meaningful oversight.”