NYS Attorney General Addresses Sales of Not-for-Profit Nursing Homes
The Charities Bureau of the New York State Office of the Attorney General recently released guidance for boards, management, and advisors contemplating the sale of a not-for-profit nursing home. The guidance seeks to address the following areas:
- factors to be evaluated in considering a sale;
- the business process for exploring requests for proposals and evaluating bidders;
- protections to be provided for the class of charitable beneficiaries (i.e., current and future residents) during and after the sale; and
- use of proceeds of the sale consistent with the nursing home’s charitable mission.
The document acknowledges that in cases when the financial situation of the charitable entity, the ability of the nursing home to provide services to existing residents, or the licensing or regulatory status of the nursing home are in jeopardy, the process described in the guidance may not be practical or in the best interest of charitable beneficiaries.
The Charities Bureau supervises charitable organizations to protect donors and beneficiaries of those charities from unscrupulous practices in the solicitation and management of charitable assets. The Bureau also supervises the activity of foundations and other charities to ensure that their charitable assets are properly used and protects the public interest in charitable gifts and bequests made in wills and trust agreements. The Bureau also maintains a registry of charities and fundraising professionals.
Any questions on such transactions may be directed to firstname.lastname@example.org.
Contact: Dan Heim, email@example.com, 518-867-8866