What are the requirements concerning the use of nonprofit assets?

In New York, nonprofit organizations are required to use their assets exclusively for the organization’s purpose, mission, and activities. This means the nonprofit cannot use its assets to benefit any directors, officers, or anyone else outside of the organization. The organization must also demonstrate public benefit—that it is doing something for the public good, such as providing services or working to solve a social problem. When it comes to using the organization’s assets, some nonprofits must make sure their assets are managed in a prudent and responsible manner. This means the nonprofit must use or invest its assets in a way that is in the best interest of the organization and that is consistent with its purpose. Nonprofits also cannot make any private inurement from their assets. This means they cannot use their assets to benefit any of their directors, officers, staff, or anyone else. Additionally, they cannot use their assets to benefit themselves or their own private interests—anything outside of what would benefit the organization’s purpose. Finally, nonprofits in New York must also make sure to follow other legal requirements, such as taxation rules and filing requirements with the Office of the Attorney General. Failure to follow these requirements can result in serious consequences, so it’s important for all nonprofits to understand and follow the law when using their assets.

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What are the requirements concerning the use of nonprofit assets?

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