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Northeast Performing Arts Alliance: Profit-Sharing Production Series
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NY vs Delaware- automated analysis


Nonprofit Charter Outline:

Nonprofit Charter Outline:
I. Introduction
A. Purpose of the Analysis
The purpose of this analysis is to provide a comprehensive framework for the establishment and operation of NEPAAL - the Northeastern Performing Arts Alliance. It outlines the key considerations, requirements, and best practices in nonprofit regulations for both New York State and Delaware. By understanding the variances between these states, NEPAAL can tailor its organizational structure, policies, and bylaws to ensure compliance and effectiveness in both jurisdictions.
B. Overview of Nonprofit Regulations in New York State and Delaware
New York State and Delaware have specific regulations and requirements governing the establishment and operation of nonprofit organizations. While there may be similarities between the two states, it is essential to understand the nuances and differences to ensure compliance with state laws and regulations. This analysis will identify and address key areas of variance, including nonprofit charter provisions, bylaws, governance, reporting, and other essential considerations.
II. Nonprofit Charter Outline
Name and Purpose
The name of the organization shall be NEPAAL - the Northeastern Performing Arts Alliance.
Purpose: NEPAAL’S principal objectives are to drive collaboration, provide support, and foster growth in the performing arts sector throughout the Northeastern United States. The organization aims to generate grants and opportunities for creative artists, to offer operational support to other arts organizations, to facilitate new forms of collaboration between creatives and institutions, and to promote transparency and sustainability in the performing arts industry- in short, to provide a unique and comprehensive platform for performing artists and arts organizations in the Northeast region.
Scope: NEPAAL aims to drive collaboration, foster artistic growth, and support the development of the performing arts through grants, advocacy, sustainable forms of administrative infrastructure and operational support.
Nonprofit Status
NEPAAL is organized exclusively for charitable, educational, and cultural purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. NEPAAL is organized and shall be operated as a nonprofit corporation in accordance with the laws of the state of incorporation.
Duration
NEPAAL's duration shall be perpetual, unless dissolved earlier as provided by law.
Registered Office and Agent
NEPAAL shall maintain a registered office in the state of incorporation and shall have a registered agent designated to receive service of process on behalf of the organization.
Governing Body and Governance
NEPAAL shall have a governing body consisting of a board of directors responsible for the overall management and decision-making of the organization.
Composition: The board shall consist of a minimum of three (3) and a maximum of fifteen (15) members.
Responsibilities: Board members shall be responsible for overall governance, fiduciary duties, and strategic direction of the organization.
Conflict of Interest: The organization shall adopt a Conflict of Interest Policy to address conflicts of interest that may arise among board members, officers, and employees.
The board shall adhere to the applicable laws and regulations governing board composition, fiduciary duties, responsibilities, and board governance.
Membership
NEPAAL may establish membership categories and criteria as determined by the board. Membership shall not be a requirement for participation in NEPAAL's programs, activities, or services.
Meetings and Governance
Meeting Frequency: Regular board meetings shall be held at least [insert frequency] per year.
Notice: Board members shall be provided with written notice of regular and special meetings.
Quorum: A quorum shall be required for the transaction of business at board meetings.
Minutes: Detailed minutes shall be recorded for all board meetings.
Officers
NEPAAL shall have officers appointed by the board, which may include a President, Vice President, Secretary, and Treasurer. The officers shall have the responsibilities and duties as outlined in the organization's bylaws.
Conflict of Interest
NEPAAL shall establish a Conflict of Interest Policy to address conflicts of interest among board members, officers, and employees. The policy shall include provisions for disclosure, recusal, annual statements, review and approval by the board, and recordkeeping in compliance with applicable state laws.
Amendments
NEPAAL's charter may be amended as provided by law and in accordance with the organization's bylaws.
Dissolution
Process: In the event of dissolution, the organization's assets shall be distributed for exempt purposes or to appropriate government entities in accordance with state-specific dissolution requirements.
policies
Policy Title
Subsections
Purpose
Provisional Working Policy
Conflict of Interest Policy
6
Policy on Conflicts of Interest
Ensure transparency and uphold interests
The organization acknowledges that conflicts of interest may arise among board members, officers, and employees. To ensure transparency and uphold the organization's best interests, the following policy shall be in place:
Disclosure
​
Any individual who has a financial, personal, or professional interest that could influence their decision-making or actions on behalf of the organization shall disclose such interest to the board of directors.
Recusal
​
Individuals with a conflict of interest shall recuse themselves from any discussion, decision, or vote relating to the matter in question.
Annual Statements
​
Board members, officers, and designated employees shall provide an annual written statement disclosing any potential conflicts of interest.
Review and Approval
​
The board of directors shall review and evaluate disclosed conflicts of interest to determine if they may compromise the organization's integrity or mission. In such cases, the board may take appropriate actions to address the conflict and ensure that the organization's interests are protected.
Recordkeeping
​
The organization shall maintain records of all disclosed conflicts of interest and actions taken to address them
Recordkeeping Policy
6
Policy on Recordkeeping
Maintain accurate and complete records
The organization recognizes the importance of maintaining accurate and complete records. The following policy shall be in place to ensure proper recordkeeping practices
Documentation
Maintain accurate and complete records
The organization shall maintain comprehensive records, including financial records, meeting minutes, resolutions, changes to the composition of the organization, and other important documents.
Archiving
Maintain accurate and complete records
Records shall be properly stored and archived in a secure and accessible manner.
Retention Period
Maintain accurate and complete records
The organization shall comply with state-specific record retention requirements and retain records for the designated period.
Confidentiality and Privacy
Maintain accurate and complete records
The organization shall implement measures to protect the confidentiality and privacy of sensitive information contained in the records.
Record Access:
Maintain accurate and complete records
The organization shall establish procedures for authorized individuals to access and retrieve records as needed.
Financial Disclosure Policy
5
Policy on Financial Disclosure
Maintain transparency and accuracy
NEPAAL is committed to maintaining transparency and providing accurate financial information to stakeholders. The policy shall include the following provisions
Financial Reporting
Maintain transparency and accuracy
NEPAAL shall prepare and present financial statements in accordance with generally accepted accounting principles (GAAP) and any additional requirements imposed by state and federal laws.
Financial Transparency
Maintain transparency and accuracy
NEPAAL shall disclose financial information to the board members, donors, and other stakeholders on a regular basis, ensuring openness and accountability.
Internal Controls
Maintain transparency and accuracy
NEPAAL shall establish and maintain internal controls to safeguard assets, prevent fraud, and ensure the accuracy and reliability of financial records.
Compliance
Maintain transparency and accuracy
NEPAAL shall comply with all applicable tax laws and regulations concerning financial disclosures, including the timely filing of IRS Form 990 and other required reports.
Payment Policies
5
Policy on Payment Practices
Ensure fair and ethical payment practices
NEPAAL shall adopt fair and ethical payment practices for compensating officers and employees. The policy shall include the following provisions
Policy on Payment Practices
Ensure fair and ethical payment practices
Forms of Payment: NEPAAL shall use authorized forms of payment, such as direct deposit or checks, for compensating officers and employees.
Policy on Payment Practices
Ensure fair and ethical payment practices
- Prohibited Forms of Payment: NEPAAL shall prohibit unauthorized or improper forms of payment, including cash payments or personal expenses charged to the organization. -
Policy on Payment Practices
Ensure fair and ethical payment practices
Approval Process: NEPAAL shall establish an approval process for expense reimbursements, ensuring compliance with the organization's expense policy and documentation requirements. -
Policy on Payment Practices
Ensure fair and ethical payment practices
Compliance: NEPAAL shall comply with all applicable tax laws and regulations regarding employee compensation, benefits, and reporting.
Engagements and Contracts Policy
5
Policy on Engagements and Contracts
Establish fair and transparent processes
NEPAAL shall establish fair and transparent processes for entering into institutional engagements and contracts. The policy shall include the following provisions:
Solicitation and Evaluation
Establish fair and transparent processes
NEPAAL shall establish procedures for soliciting proposals, evaluating potential engagements or contracts, and selecting partners based on the organization's goals and mission.
Conflict of Interest
Establish fair and transparent processes
NEPAAL shall require individuals involved in the engagement or contract process to disclose any potential conflicts of interest and recuse themselves when appropriate.
Impartiality and Fairness
Establish fair and transparent processes
NEPAAL shall ensure that engagements and contracts are awarded impartially and based on merit, without compromising the organization's integrity or mission. -
Compliance
Establish fair and transparent processes
NEPAAL shall comply with all applicable laws, regulations, and best practices regarding engagements and contracts, including recordkeeping and reporting obligations.
Privacy Policy
1
Policy on Privacy
Protect privacy and confidentiality
Policy on Privacy: NEPAAL is committed to protecting the privacy and confidentiality of individuals' personal information. The policy shall include the following provisions: - Data Collection and Use: NEPAAL shall collect and use personal information only for the purposes specified and with individuals' consent. - Data Security: NEPAAL shall implement appropriate technical and organizational measures to protect personal information against unauthorized access, loss, or misuse. - Data Retention: NEPAAL shall retain personal information for the necessary period as required by law and the organization's recordkeeping policy. - Data Sharing: NEPAAL shall not disclose personal information to third parties without individuals' consent, except as required by law or with appropriate legal justifications. - Compliance: NEPAAL shall comply with all applicable privacy laws and regulations regarding the collection, use, storage, and disclosure of personal information.
Non-Compete & Mutual nondisclose policy
3
Policy on Non-Compete
Protect organization's interests
NEPAAL officers, employees, and volunteers shall not engage in activities that compete with NEPAAL's goals and mission during their affiliation with the organization.
​
​
​
Non-Disclosure:
​
NEPAAL individuals shall maintain the confidentiality of proprietary and sensitive information acquired during their involvement with the organization, both during and after their affiliation.
Ethical Standards Policy
4
Policy on Ethical Standards
Uphold high standards of ethical conduct
Policy on Ethical Standards: NEPAAL is committed to upholding the highest standards of ethical conduct in all its operations. The policy shall include the following provisions: -
Principles of Conduct
​
NEPAAL individuals, including board members, officers, employees, and volunteers, shall adhere to principles such as honesty, integrity, respect for others, compliance with laws and regulations, and promoting transparency and sustainability. -
Compliance with Laws
​
NEPAAL shall comply with all applicable laws and regulations governing its operations and activities.
Responsible Resource Use
​
NEPAAL individuals shall use organizational resources responsibly and for authorized purposes.
Lobbying and Political Activities Policy
1
Policy on Lobbying and Political Activities
Comply with IRS limitations and reporting requirements
Policy on Lobbying and Political Activities: NEPAAL shall adhere to the limitations imposed by the Internal Revenue Code on lobbying and political activities. The policy shall include the following provisions: - Permissible Lobbying Activities: NEPAAL shall engage in permissible lobbying activities within the constraints of the law, including direct lobbying and grassroots lobbying. - Reporting and Compliance: NEPAAL shall monitor and track lobbying activities, ensuring compliance with applicable laws and reporting requirements. - Prohibited Political Activities: NEPAAL shall refrain from engaging in partisan political activities, endorsing or contributing to political campaigns, or supporting specific candidates for public office. - Compliance: NEPAAL shall establish procedures for monitoring and enforcing compliance with the Lobbying and Political Activities Policy, ensuring that all activities are conducted in accordance with the law and regulations.
Public Benefit Policy
1
Policy on Public Benefit
Demonstrate public benefit provision
Policy on Public Benefit: NEPAAL shall demonstrate its commitment to providing public benefit beyond stating its overall charitable purpose. The policy shall include the following provisions: - Metrics and Reporting: NEPAAL shall establish metrics and reporting mechanisms to assess and communicate its impact on the community, the performing arts, and the advancement of arts organizations. - Grantmaking and Support: NEPAAL shall prioritize providing grants and support to other nonprofit performing arts organizations and individual artists to promote the public benefit. - Transparency and Accountability: NEPAAL shall ensure transparency and accountability in its operations, providing timely and accurate information about its programs, impact, and use of resources to stakeholders and the public. - Compliance: NEPAAL shall comply with all applicable laws and regulations governing public benefit provisions and reporting requirements.
Employment and Labor Policies
1
Policy on Employment and Labor
Ensure fair employment practices
Policy on Employment and Labor: NEPAAL is committed to fair employment practices and compliance with employment and labor laws. The policy shall include the following provisions: - Equal Employment Opportunity: NEPAAL shall provide equal employment opportunities to all individuals without regard to race, color, religion, sex, national origin, age, disability, or any other legally protected status. - Fair Compensation: NEPAAL shall establish compensation structures that ensure fair and equitable remuneration, in compliance with applicable state and federal laws. - Workplace Policies: NEPAAL shall maintain workplace policies that promote a safe, inclusive, and harassment-free environment, addressing issues such as anti-discrimination, accommodation, and code of conduct. - Compliance: NEPAAL shall comply with all applicable labor laws, including those related to minimum wage, overtime, benefits, and other employee rights.
Best Practices for Media Licensing Policy
1
Policy on Best Practices for Media Licensing
Promote fair and progressive licensing practices
Policy on Best Practices for Media Licensing: NEPAAL recognizes the importance of promoting fair and progressive licensing practices in the media industry. The policy shall include the following provisions: - Fair Compensation: NEPAAL shall ensure fair and reasonable compensation for artists' work when entering into licensing agreements. - Transparency and Accountability: NEPAAL shall provide clear and transparent terms in licensing agreements, including information on usage, royalties, and attribution. - Artist Protection: NEPAAL shall prioritize the protection of artists' rights, including their intellectual property and creative control. - Licensing Review: NEPAAL shall implement a thorough review process for licensing agreements, ensuring that they align with NEPAAL's mission, values, and legal requirements. - Compliance: NEPAAL shall comply with all applicable copyright laws, licensing regulations, and industry best practices in media licensing.
⁠

Bylaws: New York State:
Nonprofit Incorporation: The organization must file Articles of Incorporation with the New York Department of State.
Charitable Registration: Nonprofits must register with the New York State Attorney General's Charities Bureau.
Fundraising and Solicitation: Nonprofits must comply with New York's specific laws and regulations governing fundraising and solicitation activities.
Board Governance: New York has specific laws regarding board composition, fiduciary duties, and responsibilities that should be reflected in the bylaws and policies.
State-Specific Reporting: Nonprofits are required to file annual reports with the New York Department of State and may have additional reporting obligations depending on their activities and revenue.
Delaware:
Nonprofit Incorporation: The organization must file a Certificate of Incorporation with the Delaware Secretary of State.
Bylaws: Delaware does not require nonprofits to file bylaws, but it is essential to have comprehensive bylaws that address governance, meetings, and other key provisions.
Registered Agent: Nonprofits must maintain a registered agent with a physical address in Delaware.
Annual Franchise Tax: Nonprofits in Delaware are subject to an annual franchise tax based on their authorized shares or assumed par value capital.
Conflicts of Interest: Delaware has specific laws governing conflicts of interest, and nonprofits should have policies and procedures in place to address and manage such conflicts.

Bylaws
Article
New York State
Delaware
1
Article of Incorporation
NEPAAL shall file Articles of Incorporation with the New York Department of State, complying with New York's specific nonprofit incorporation requirements.
NEPAAL shall file a Certificate of Incorporation with the Delaware Secretary of State, complying with Delaware's specific nonprofit incorporation requirements.
2
Charitable Registration
NEPAAL shall register with the New York State Attorney General's Charities Bureau, complying with New York's specific charitable registration requirements.
NEPAAL shall register with the Delaware Attorney General's Office, Charitable Solicitation Section, complying with Delaware's specific charitable registration requirements.
3
Fundraising and Solicitation
NEPAAL shall comply with New York's fundraising and solicitation laws, including registration, reporting, and disclosure requirements.
NEPAAL shall comply with Delaware's fundraising and solicitation laws, including registration, reporting, and disclosure requirements.
4
Board Composition and Governance
NEPAAL shall establish bylaws addressing New York State's board composition requirements, fiduciary duties, responsibilities, and board governance laws.
NEPAAL shall establish bylaws addressing Delaware's board composition requirements, fiduciary duties, responsibilities, and board governance laws.
5
Reporting Obligations
NEPAAL shall comply with New York's reporting requirements to the New York Department of State, based on revenue and activity, including the filing of annual reports and financial statements.
NEPAAL shall comply with Delaware's reporting requirements, including the filing of annual reports and financial statements.
6
Retaining a Registered Agent
NEPAAL shall retain a registered agent with a physical address in Delaware, such as Corporate Creations, to fulfill the registered agent requirement in Delaware.
N/A
7
Conflict of Interest
NEPAAL shall establish a Conflict of Interest Policy that addresses conflicts of interest, including disclosure, recusal, annual statements, review and approval by the board, and recordkeeping, in compliance with New York State laws.
NEPAAL shall establish a Conflict of Interest Policy that addresses conflicts of interest, including disclosure, recusal, annual statements, review and approval by the board, and recordkeeping, in compliance with Delaware laws.
8
Additional Bylaws for New York State
NEPAAL shall include additional bylaws that address New York State's fundraising and solicitation laws, board composition and governance laws, and reporting requirements to the New York Department of State, based on revenue and activity.
N/A
9
Additional Bylaws for Delaware
N/A
NEPAAL shall include additional bylaws that address Delaware's provisions for retaining a registered agent and specific requirements around conflict of interest.
There are no rows in this table
⁠
Please note that the "N/A" denotes sections that do not have specific variances or additional bylaws for a particular state.





Summary:
In summary, the nonprofit charter and policies outlined in V2 provide a comprehensive framework for NEPAAL - the North Eastern Performing Arts Alliance, in establishing and operating a nonprofit organization in both New York State and Delaware. The charter covers the organization's purpose, board governance, meetings and governance, officers, dissolution, and a summary of the differences between the states. The policies address key areas such as conflict of interest, recordkeeping, financial disclosure, payment practices, engagements and contracts, privacy, non-compete obligations, ethical standards, lobbying and political activities, public benefit, employment and labor, and best practices for media licensing. These policies are customized based on state-specific laws, regulatory requirements, and best practices in the nonprofit sector, ensuring compliance and effectiveness in both states.
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