TLDR
New York requires charities soliciting in the state to register with the Charities Bureau under Article 7-A of the Executive Law and to file Form CHAR500 annually. Audit thresholds are tiered: a CPA review at $250,000 in gross revenue and a full CPA audit at $1,000,000. The Non-Profit Revitalization Act (NPRA) imposes governance rules — independent directors, conflict-of-interest policies, whistleblower policies — that take effect at modest revenue thresholds. State grant pass-throughs from OASAS, OMH, OCFS, and DOH carry full Uniform Guidance obligations.
New York’s nonprofit compliance regime has three distinct layers: the Charities Bureau under Article 7-A and EPTL Article 8, the governance reforms imposed by the Non-Profit Revitalization Act, and the state agency-by-agency contracting infrastructure that pushes federal pass-throughs through OMH, OASAS, OCFS, and DOH. Each layer has its own forms, deadlines, and thresholds. The combined footprint is heavier than most states but lighter than California in some respects.
This FAQ collects the questions New York executive directors and grants managers actually ask in the first year. Every answer is grounded in the underlying New York statute, IRS guidance, or Charities Bureau publication, and the source is cited so you can verify the current rule. Use this as a map; when you need formal advice, your New York nonprofit attorney or audit firm is the right call.
Where to go next
- The New York state hub: GrantPipe for New York nonprofits
- Step-by-step setup: New York nonprofit startup guide
- Audit thresholds across states: Nonprofit audit requirements by state
- Free download: New York compliance checklist
Implementation realities and migration notes
Mid-sized nonprofits in this category typically inherit a tangle of restricted-fund histories: federal pass-throughs, state agency contracts, family-foundation grants, and partner funding stretching back many years. Migrating that history cleanly is not optional — auditors and program officers will ask questions that require a year-by-year reconstruction. Implementation timelines run six to ten weeks for organizations that scope the data inventory before signing. Cutting corners on migration to chase a fast launch usually surfaces gaps during the next single-audit cycle, and the cost of fixing those gaps after the fact is meaningfully higher than doing migration right at the start.
Plan accordingly, and require any vendor on the shortlist to demonstrate restricted-fund handling, grant tracking, and donor record migration on a representative sample of your actual historical data before you sign. Vendors that decline to demo on real data are filtering you out for a reason. The demo on your data is where the gaps surface — both the gaps in the vendor’s product and the gaps in your existing records that you will need to clean up regardless of which system you choose. Use that demo to set realistic expectations with the board and the audit committee about timeline and scope before contracts get signed.
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Frequently asked
Frequently Asked Questions
Do I have to register with the NY Charities Bureau?
Yes, if you solicit charitable contributions in New York. Article 7-A of the New York Executive Law requires every charitable organization soliciting in New York to register with the Attorney General's Charities Bureau before soliciting. Separate registration under the Estates, Powers and Trusts Law (EPTL) Article 8 is required for organizations holding charitable assets in New York. Most organizations are dual-registered (7-A and EPTL). File Form CHAR410 for initial registration, $25 fee.
What is Form CHAR500 and when is it due?
Form CHAR500 is the annual filing for registered charities, due four months and 15 days after fiscal year end (May 15 for calendar-year filers). The filing includes a copy of Form 990 and any required audited financial statements or CPA review. Article 7-A registrants pay a fee scaled by contributions, ranging from $25 to $750. EPTL filers pay a separate fee scaled by net worth. Both fees are paid together when the organization is dual-registered. Late filings accrue penalties under Executive Law Section 174.
What are New York's audit thresholds for nonprofits?
Two thresholds. (1) Gross revenue and support over $250,000: an independent CPA review (or audit, at the organization's option) is required. (2) Gross revenue and support over $1,000,000: a full CPA audit is required. The audit must be conducted under generally accepted auditing standards. The thresholds are set under Executive Law Section 172-b. Audited financials are filed with CHAR500. Organizations under $250,000 are not required to submit any CPA-prepared financials.
What is the Non-Profit Revitalization Act?
The Non-Profit Revitalization Act of 2013 (NPRA) modernized New York's nonprofit governance rules. Key requirements: a written conflict-of-interest policy approved by the board, an annual conflict-of-interest disclosure by every director and officer, a written whistleblower policy for organizations with 20+ employees and $1 million+ revenue, an independent audit committee for organizations over $1 million in revenue, and prohibitions on related-party transactions unless properly approved. Most operating charities are subject to at least the conflict-of-interest provisions.
How does New York sales-tax exemption work for nonprofits?
A 501(c)(3) organization applies separately to the New York Department of Taxation and Finance using Form ST-119.2 to obtain an Exempt Organization Certificate (Form ST-119). Once issued, the organization gives Form ST-119.1 to vendors when purchasing taxable items used by the exempt organization. Sales tax exemption does not cover sales of taxable items by the nonprofit — those generally require collection of sales tax unless a specific exemption applies (e.g., qualifying fundraising events, food sales by certain organizations).
Do New York nonprofits get an automatic property-tax exemption?
No. New York Real Property Tax Law Section 420-a provides an exemption for property owned by a nonprofit organization organized exclusively for religious, charitable, hospital, educational, or moral or mental improvement of men, women, or children purposes, and used exclusively for those purposes. The nonprofit applies to the local assessor (typically the town, village, or city assessor) by the local taxable status date — for most jurisdictions, March 1. Annual renewal is required.
How does payroll registration work in New York?
Federal: EIN and EFTPS. State: register with the New York Department of Labor for unemployment insurance and with the New York Department of Taxation and Finance for state withholding. 501(c)(3) organizations may elect the reimbursing-employer method for unemployment insurance. New York State Disability and Paid Family Leave insurance are mandatory for most employers — coverage must be in place from the first day of employment, generally through a private insurer or the State Insurance Fund.
How do I incorporate a nonprofit in New York?
File a Certificate of Incorporation with the New York Department of State under the Not-for-Profit Corporation Law (NPCL). The filing fee is $75. New York classifies nonprofits into four types (A, B, C, D), with most 501(c)(3) charities being Type B. Some types and purposes require consent or approval from a state agency before filing — for example, education-related nonprofits typically need consent from the State Education Department. After incorporation, file IRS Form 1023 and register with the AG Charities Bureau.
What is the minimum board size for New York nonprofits?
Three directors is the minimum under New York Not-for-Profit Corporation Law Section 701. Directors must be at least 18 years of age. NPRA prohibits an employee of the corporation from serving as chair of the board (NPCL Section 713(f)). NPRA also requires that at least one director be 'independent' for organizations subject to the audit committee requirement, with a specific definition under NPCL Section 102(a)(21).
Are there fiscal-year quirks for New York nonprofits?
CHAR500 is due 4.5 months after fiscal year end, the same as federal Form 990 — May 15 for calendar-year filers. The Department of State biennial Statement is on a different cycle, due every two years in the calendar month of original incorporation, not synchronized with fiscal year. Many NY nonprofits operate on a June 30 fiscal year aligned with state government grant cycles, in which case CHAR500 is due November 15 and the federal 990 is also November 15.
How do federal grants flow through New York state agencies?
Major pass-through agencies include the Office of Mental Health (OMH), Office of Addiction Services and Supports (OASAS), Office of Children and Family Services (OCFS), Department of Health (DOH), and Office of Temporary and Disability Assistance (OTDA). The state agency is the pass-through entity under 2 CFR 200.332 and is responsible for monitoring subrecipients. Uniform Guidance allowable cost, procurement, and audit rules apply at the subrecipient level. The state agency may add state-specific reporting requirements on top.
What state-funded grant programs should New York nonprofits know?
Consolidated Funding Application (CFA) for Regional Economic Development Council awards; New York State Council on the Arts (NYSCA) general operating support; NYS Office of the Attorney General Charities Bureau Tax Check-Off grants; New York Health Foundation grants; Empire State Development workforce and capital programs; OASAS treatment and prevention contracts; OMH community mental health contracts; OCFS preventive services contracts. The CFA is the single front door for many state economic development and parks/environment grants.
Where do New York nonprofits file annual reports?
Three places. (1) IRS — Form 990, 990-EZ, or 990-N. (2) NY Charities Bureau — CHAR500 plus 990 attachment and audited financials if required. (3) NY Department of State — Biennial Statement every two years. Organizations operating in New York City should also be aware of the city's Mayor's Office of Contract Services (MOCS) requirements if they hold city contracts. The Charities Bureau filings are public; the search portal is at charitiesnys.com.
What is the most common New York nonprofit compliance mistake?
Missing the audit/review threshold change-year. The CPA review threshold of $250,000 catches small organizations growing into mid-size. Founders submit CHAR500 with no CPA-prepared financials in the first $250K+ year and are flagged by the Charities Bureau, which requires re-filing with the missing audit or review attached. Watch the trailing 12-month revenue figure as the year closes; if you cross $250,000, line up the CPA before fiscal year end so the engagement can complete by the May 15 deadline.
Do New York professional fundraisers register separately?
Yes. Professional fundraisers, fundraising counsel, and commercial coventurers register separately with the Charities Bureau before soliciting in New York. Charities that hire a professional fundraiser file the contract and Schedule 4-A with CHAR500 and verify the fundraiser's registration. Article 7-A includes specific contract requirements — including a 15-day cancellation right for the charity. Failure to verify registration or use of an unregistered fundraiser is a separate violation by the charity.
What are New York's rules on raffles and games of chance?
New York is a tightly regulated state for charitable gaming. The Gaming Commission's Charitable Gaming Division regulates bingo and games of chance under Articles 9-A and 14-H of General Municipal Law. The municipality where the game is conducted must have authorized charitable gaming by local option, and the conducting organization must obtain a license from the local clerk and a Gaming Commission identification number. Raffles with prizes valued at $30,000 or less may be conducted under a streamlined process; larger raffles require additional approvals.
What records must New York nonprofits keep?
NPCL Section 621 requires every nonprofit corporation to keep correct and complete books and records of account, minutes of meetings of members, board, and committees, and a list of names and addresses of members entitled to vote. Records must be available for inspection by directors at any reasonable time. Members have inspection rights subject to procedure. Standard practice: financial records for at least seven years, board minutes permanently, donor restriction documentation for the life of the restriction plus seven years.
Does the NY Open Meetings Law apply to nonprofits?
Generally no. The Open Meetings Law (Public Officers Law Article 7) applies to public bodies. A nonprofit corporation is not a public body unless it has been granted a governmental function. Public-benefit corporations created by state legislation (e.g., MTA, Empire State Development) are subject. Most operating 501(c)(3) charities are not. Organizations with government-appointed board majorities should obtain a fact-specific legal review.
How long does NY 501(c)(3) determination take?
501(c)(3) determination is a federal IRS process, not a state process. Form 1023 typically takes 6 to 12 months; Form 1023-EZ typically takes 2 to 4 weeks. New York state-level work — Department of State incorporation, AG Charities Bureau registration, Department of Taxation sales-tax exemption — runs in parallel and typically completes within 6 to 10 weeks. Education-related nonprofits often have a longer timeline because of the State Education Department consent requirement.
What about New York City-specific requirements?
New York City nonprofits operating under city contracts navigate the Mayor's Office of Contract Services (MOCS), the Procurement and Sourcing Solutions Portal (PASSPort), and contract-specific reporting. The NYC Department of Consumer and Worker Protection regulates door-to-door solicitation in the city. Real property in NYC qualifies for state-level Section 420-a exemption but is administered by the NYC Department of Finance. NYC also has a Conflicts of Interest Board that can apply when officials interact with city-funded charities.
How does GrantPipe help New York nonprofits stay compliant?
GrantPipe tracks every grant award alongside the program funds it supports, surfaces deadlines for federal pass-throughs from OMH, OASAS, OCFS, DOH, and OTDA, and produces audit-ready schedules for both the New York CPA review at $250,000, the audit at $1,000,000, and the federal Single Audit at $1,000,000 in federal awards expended. It is one system for donors, grants, restricted funds, and compliance documentation — built for the mid-sized New York nonprofits handling CHAR500 plus federal pass-through reporting.
Where can I read the underlying New York statutes and forms?
New York Executive Law Article 7-A (charitable solicitation), Estates, Powers and Trusts Law Article 8 (charitable trusts), and Not-for-Profit Corporation Law on the New York State Senate site at nysenate.gov/legislation. Charities Bureau forms and registration at charitiesnys.com. Department of Taxation and Finance exempt organization information at tax.ny.gov. NY State Department of State business filings at dos.ny.gov. Department of Labor unemployment information at labor.ny.gov.