(a) A corporation which is, or would be if formed under this chapter,
a charitable corporation shall hold full ownership rights in any assets
consisting of funds or other real or personal property of any kind, that
may be given, granted, bequeathed or devised to or otherwise vested in
such corporation in trust for, or with a direction to apply the same to,
any purpose specified in its certificate of incorporation, and shall not
be deemed a trustee of an express trust of such assets. Any other
corporation subject to this chapter may similarly hold assets so
received, unless otherwise provided by law or in the certificate of
incorporation.
(b) Except as may be otherwise permitted under article eight of the
estates, powers and trusts law or section 555 (Release or modification
of restrictions on management, investment, or purpose), the governing
board shall apply all assets thus received to the purposes specified in
the gift instrument as defined in section 551 (Definitions) and to the
payment of the reasonable and proper expenses of administration of such
assets. The governing board shall cause accurate accounts to be kept of
such assets separate and apart from the accounts of other assets of the
corporation. Unless the terms of the particular gift instrument provide
otherwise, the treasurer shall make an annual report to the members (if
there be members) or to the governing board (if there be no members)
concerning the assets held under this section and the use made of such
assets and of the income thereof.
Structure New York Laws
NPC - Not-For-Profit Corporation
501 - Stock and Shares Prohibited; Membership Certificates Authorized.
502 - Members' Capital Contributions.
505 - Subvention Certificates.
506 - Bonds and Security Interests.
507 - Fees, Dues and Assessments; Fines and Penalties.
508 - Income From Corporate Activities.
509 - Purchase, Sale, Mortgage and Lease of Real Property.
510 - Disposition of All or Substantially All Assets.
511 - Petition for Court Approval.
511-A - Petition for Attorney General Approval.
513 - Administration of Assets Received for Specific Purposes.
514 - Delegation of Investment Management.
515 - Dividends Prohibited; Certain Distributions of Cash or Property Authorized.
516 - Distributions to Members Upon Termination of Membership.
519 - Annual Report of Directors.
519-A - Annual Reports for Certain Transactions Required.
521 - Liability for Failure to Disclose Required Information.