The operations of most retirement plans are governed by federal legislation, most notably ERISA – the Employee Retirement Income Security Act. On the other hand, the operation of other institutions - such as non-profits, foundations, and endowments - is often guided by state law. For example, New York signed its own version of the Prudent Management of Institutional Funds Act (NYPMIFA) in 2010 to govern foundation and endowments. More recently, the New York State Non-Profit Revitalization Act of 2013 provided updated guidelines for transparency for non-profit corporations.
For local readers, several of Rochester’s largest employers are non-profits and since the law took effect on July 1st, 2014, it is a timely topic of conversation. Our lead consultant, Sean Patton was recently on our local NPR station – 1370 WXXI – talking about the act and what it means in terms of transparency, audit requirements, accountability, modernization, stewardship and governance.
You can listen to the discussion here. Discussion starts around the 40 minute mark.