More than a month after a major overhaul of Florida’s nonprofit corporation law took effect, nonprofit organizations are being encouraged to review their governing documents to determine whether changes are needed under the updated statute. 

The revised Florida Nonprofit Corporation Act, approved through House Bill 797 and effective July 1, comprehensively updates Florida’s existing laws governing nonprofit corporations. The legislation modernizes Chapter 617 of Florida Statutes and provides updated rules concerning organizational governance. 

For nonprofits, however, the new law is not necessarily a signal that major changes are required. 

“What we’re really trying to communicate is that this is not a crisis and doesn’t need to be treated as such,” said Mike Donahue, communications and external affairs manager for the Florida Nonprofit Alliance. “More often than not, it’s just a really good opportunity to do some housekeeping.” 

Donahue said nonprofit executives, boards and organizational leaders should conduct a self-audit of their governing documents to determine where the revised statute applies and whether changes are necessary.  

The law provides default guidelines in areas where an organization’s articles of incorporation or other governing documents may be silent, including matters involving boards, membership, volunteers and staff, Donahue said. Organizations retain flexibility to adopt or revise their own policies rather than necessarily relying on those default provisions.  

The Florida Nonprofit Alliance has provided nonprofits with resources including a self-assessment tool and a webinar explaining the changes. Donahue said organizations can compare those resources with their governing documents and consult legal counsel if they identify potential compliance issues.  

At Loaves & Fishes, an Apopka food pantry, director Lory Reeves said she learned about HB 797 before it took effect and sent information about the legislation to the organization’s five-member board of directors. 

Reeves said she is awaiting feedback from the board about whether any changes are necessary, but her own review has not identified anything she expects will require changes. 

“It’s business as usual,” Reeves said, adding that she does not expect operational changes at the organization.  

Reeves said Loaves & Fishes already keeps its organizational practices and articles of incorporation current. 

“We’ve been doing our quote-unquote housekeeping every day,” she said.  

From what she has reviewed so far, Reeves said she does not expect the law to affect the pantry’s donors or clients. She said she would have a clearer picture after hearing from the organization’s board.  

Donahue said the changes are expected to be felt primarily in nonprofits’ administrative operations and governance rather than by the people they serve. The overhaul was designed to modernize Florida’s nonprofit statute and align it more closely with the Florida Business Corporation Act and the American Bar Association’s Model Nonprofit Corporation Act.  

The Florida Nonprofit Alliance has received significant interest from organizations seeking information about the changes, Donahue said, but no single provision has emerged as a major concern. Instead, nonprofits largely want to make sure their governing documents comply with the revised law.  

“It’s overall a positive thing that ideally should not be a heavy lift or a crisis for any nonprofit organization in the state,” Donahue said.  

The new law comes as Apopka nonprofit organizations continue to play an active role in providing community services. In July, the Apopka City Commission approved $70,000 in grants for 14 nonprofit organizations that support youth, at-risk individuals and seniors.