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New legislation modernizing laws governing Kentucky nonprofit organizations takes effect


House Bill 443, new legislation that makes necessary clarifications and provides statutory flexibility to the laws governing nonprofit organizations in Kentucky, took effect Saturday.

The bill, sponsored by Repreuseative Robert Benvenuti of Lexington, passed unanimously in both chambers of the Kentucky General Assembly and was signed into law by Gov. Matt Bevin on April 26.

The legislation builds on a law passed in 2015 allowing nonprofits greater user of technology that included significant input from a work group convened by Kentucky Nonprofit Network and a task force convened by Secretary of State Alison Lundergan Grimes.

The new legislation will impact a significant part of Kentucky’s workforce. Kentucky’s nonprofit sector is a strong economic engine, employing one in eleven Kentuckians – 9 percent of the state’s workers. “The passage of this legislation provides much-needed guidance and flexibility to nonprofits, ultimately allowing these vital organizations to spend more time doing what they do best – helping to create strong, vibrant communities,” said Danielle Clore, KNN executive director and CEO. “We appreciate the support of elected officials since Kentucky Nonprofit Network began work on this effort in 2014.”

The update to Kentucky’s nonprofit corporation laws, originally written in the 1960s, addresses issues such as the size and structure of a nonprofit organization’s board of directors; the structure and authority of nonprofit board and advisory committees; and guidance on managing board member conflicts of interest.

Additional resources to help nonprofits take advantage of the new laws, including a one page summary, are available at www.kynonprofits.org.

From Kentucky Nonprofit Network


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