Association executives got to start the year off right with sound financial and management know-how at NYSAE’s January Institute. Sessions covered proposed changes in New York State Law affecting associations and nonprofits, understanding one’s fiduciary responsibilities, and updates on retirement plans.
Michael Cooney, Esq., partner, Nixon Peabody LLP, and a member of the New York Attorney General’s Nonprofit Leadership Committee, opened the program with highlights of proposed changes in New York State law. “Though not quite sure of what the final impact will be, the discussion about what may be coming down the pike from Albany was particularly interesting to me,” said attendee Paul Vitale, vice president, finance and administration for the Toy industry Association, “because in addition to working for a trade association, we have a 501(c)3 charity that can be affected. I’m also on the board of another nonprofit, so attending the NYSAE program was very helpful".
Rory Cohen, Esq., partner with Mayer Brown LLP, and Amish Mehta, CPA, director of not-for-profit services, Friedman LLP, talked about the key provisions of the New York Prudent Management of Institutional Funds Act (NYPMIFA). The session covered endowment funding considerations, components of an effective investment process, and the financial reporting and disclosure requirements for endowment funds.
“NYPMIFA expands upon Prudent Investor Act, national guidelines from 8 to10 years ago,” explained David Murphy, CPA, senior vice president of wealth management in the New York office of UBS Financial Services, and a member of NYSAE’s Education Committee. Murphy helped put together the program for the Finance & Management Institute. NYPMIFA, he said, modernizes rules governing appropriation and endowment spending rules; provides greater flexibility and guidance in the management function, as well as greater flexibility about releasing of donor restrictions on institutional funds.
Harvey M. Katz, partner, Fox Rothschild LLP, Barry N. Koslow, JD, managing director, MKA Executive Planners, and David Murphy, presented an update on retirement plans for nonprofits, including the Department of Labor’s (DOL) new Pension Plan Fee Disclosure requirements.
“It’s anticipated that the DOL requirements will go into effect in the second quarter,” said Murphy. The new rules and guidelines cover supplemental retirement programs, such as deferred compensation, as well as information requirement for such things as 401k plans. “In many cases,” said Murphy, “neither the employer nor the employee understands who is paying for the expenses of these plans. The new guidelines puts in place a formal system so that workers and plan sponsors have information they need to evaluate whether getting record keeping investment, and other services at a fair price,” said Murphy.
Sponsorships,endorsements,affinity programs, and other types of activities that may generate revenue also give rise to issues regarding unrelated business income tax and other legal liability concerns. Luncheon speaker George E. Constantine address Legal and Tax Issues for Nonporfit Organizations Generating New Revenue Streames. He shared examples of recent non-dues revenue programs and discussed how they are structured to minimize legal and tax risks. The former staff counsel of American Society of Association Executives (ASAE), Contantine represents numerous trade and professional associations as a partenr in the District of Columbia headquaters offices of Venable LLP.