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Bill would tighten state grant rules for nonprofits after Feeding Our Future controversy
Summary
House File 2786 would narrow which nonprofits can receive state education grants by requiring tax-exempt status, limiting administrative overhead to 25% of revenue and capping employee pay at 110% of the governor’s salary; sponsors cited Feeding Our Future as an example where the IRS revoked tax-exempt status yet payments continued.
Representative Bennett presented House File 2786, a bill that would place additional conditions on state grants and payments to nonprofit organizations that receive funds through the Minnesota Department of Education.
What the bill would require: Bennett described several provisions: MDE would be prohibited from issuing or would be required to terminate grants if a nonprofit fails to maintain tax-exempt status or fails to comply with reporting requirements (including financial filings required by the Minnesota…
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