NY Not for Profit Corp L § 406 (2021)
2021 New York Laws NPC - Not-For-Profit Corporation Article 4 - Formation of Corporations 406 - Private Foundation, as Defined in the United States Internal Revenue Code of 1954: Provisions Included in the Certificate of Incorporation.

§ 406. Private  foundation,  as  defined  in  the United States internal          revenue code of 1954: provisions included in the certificate of          incorporation.  (a) The following provisions are hereby included in the certificate of incorporation of every domestic  corporation,  heretofore  or  hereafter formed,  to which this chapter applies in whole or in part, and which is a "private foundation" as defined in section 509 of  the  United  States internal revenue code of 1954 ("code"):  (1)  The  corporation  shall  distribute such amounts for each taxable year at such time and in such manner as not to subject  the  corporation to tax on undistributed income under section 4942 of the code.  (2)  The corporation shall not engage in any act or self-dealing which is subject to tax under section 4941 of the code.  (3) The corporation shall not  retain  any  excess  business  holdings which are subject to tax under section 4943 of the code.  (4)  The  corporation shall not make any investments in such manner as to subject the corporation to tax under section 4944 of the code.  (5) The corporation shall not make any taxable expenditures which  are subject to tax under section 4945 of the code. Except   as   provided   in   paragraph   (b),  this  paragraph  applies notwithstanding any other provision of the certificate of  incorporation or any direction in a gift instrument.  (b) Paragraph (a) shall not apply to the extent that it conflicts with any  mandatory  direction  in  a  gift  instrument executed prior to the effective date of this section  unless  such  conflicting  direction  is removed  as impracticable under article eight of the estates, powers and trusts law or in any other manner provided by  law.  The  absence  of  a specific  provision  in  the  gift instrument for the current use of the principal of the fund, or the  presence  in  such  an  instrument  of  a provision,  as  to  the  principal of a fund, limited to the principal's being held, invested and reinvested, is not such a conflicting mandatory direction.  (b-1) A  domestic,  not-for-profit  corporation  that  is  a  "private foundation"  as  defined in section 509 of the code and that is required by section 6104(d) of the code to make available for  public  inspection its  annual  return  shall  publish  notice  of the availability of such return for inspection. Such notice shall be published,  not  later  than the day prescribed for filing such annual return (determined with regard to  any  extension of time for filing), in a newspaper designated by the clerk of the county  in  which  the  principal  office  of  the  private foundation  is  located, having general circulation in that county. When such county is located within a city with a population of one million or more, such designation shall be as though such notice were a  notice  of judicial  proceedings.  The notice shall state that the annual return of the  private  foundation  is  available  at  its  principal  office  for inspection  during regular business hours by any citizen who requests it within one hundred eighty days after the date of such  publication,  and shall  state  the  address  and  the  telephone  number  of  the private foundation's principal office and the name of its principal  manager.  A copy  or  notice  published  in  a newspaper other than the newspaper or newspapers designated by the county clerk shall not be deemed to be  one of the publications required by this paragraph.  (c) All references in this section to sections of the code shall be to such  sections  as  amended  from  time  to  time,  or  to corresponding provisions of subsequent internal revenue laws.  (d) Nothing in this section shall impair the rights and powers of  the courts or the attorney-general of this state.  (e)  For purposes of this section, the term gift instrument shall have the meaning set forth in section 551 (Definitions).