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Senator Draheim advances proposal limiting state grants to nonprofits with high executive compensation; nonprofit sector opposes
Summary
Senate File 240 would prohibit certain state grants to nonprofits whose executive compensation exceeds a cap tied to the governor’s salary; the Minnesota Council of Nonprofits and disability advocates testified in opposition, warning about hiring impacts and unintended consequences for organizations serving vulnerable populations.
Senate File 240 would restrict grant eligibility for nonprofit organizations if executive compensation exceeds a cap tied to the governor’s salary (the bill proposes a percentage‑based limit and defines compensation broadly to include salary, benefits and retirement contributions).
Senator Draheim, the bill’s author, said the measure is intended to ensure taxpayer funds support programmatic work…
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