SB 2444 Summary

• Allows nonprofit corporations to conduct annual and special membership meetings electronically via internet or other electronic communications technology if members can read/hear proceedings, vote, pose questions, and make comments.

• Requires nonprofits incorporated after January 1, 2012 that solicit contributions to have at least three (3) directors and to state their initial planned primary nonprofit activity in articles of incorporation.

• Permits electronic transmission of notices, records, and communications to members and establishes procedures for electronic delivery including authorization and revocation mechanisms.

• Limits director liability for nonprofits that are not charitable organizations to liability for: financial benefits received improperly, intentional harm, violations of conflict of interest rules, and intentional criminal violations.

• Requires charitable nonprofits to notify the Secretary of State within thirty (30) days of receiving tax-exempt status determination under IRC Section 501(c)(3) and within thirty (30) days if that status is suspended or revoked.