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Legislature recesses proposed nonprofit pay-and-disclosure law after marathon public hearing
Summary
After a nearly three-hour public hearing in which nonprofit leaders, health professionals and community members warned that caps and donor-disclosure rules would harm services and fundraising, the Suffolk County Legislature voted to recess the proposed law limiting nonprofit executive pay and requiring donor lists.
A Suffolk County Legislature public hearing on a proposed law to cap nonprofit executive pay and require disclosure of donors drew a packed horseshoe of nonprofit leaders, medical professionals, veterans and other residents on Sept. 4, prompting the Legislature to recess the measure.
The bill, IR 1687, would have barred the County from contracting with nonprofit agencies that pay any employee more than the governor’s salary and would have required disclosure of private funding sources for contract agencies. Backers said the measure aimed to increase transparency and ensure taxpayer funds principally fund direct services. Opponents called it arbitrary and harmful.
"Taxpayer dollars should be spent responsibly," said Neil Falkenhan, who identified himself as a Long Island insurance-industry executive, but added the governor’s salary is an arbitrary benchmark and that disclosure requirements could deter donors. "This resolution misses the mark and unfairly targets nonprofit organizations providing valuable services to residents of Suffolk County," he said.
Multiple nonprofit board members and executives told the Legislature that existing oversight mechanisms — volunteer boards with fiduciary duties, annual independent audits, IRS Form 990 disclosures and county Comptroller reviews — already provide fiscal accountability. Robert Creighton, vice-chair of Family Service League’s board, warned the cap would drive away talent and said most contract dollars do not fully cover administrative costs.
"Nonprofits are businesses with missions," said Robert Detor, a retired hospital chief executive who serves on several nonprofit boards. "We want the most experienced leadership because that's what predetermines the quality of the organization and the service it will deliver."
Speakers representing hospitals, recovery schools, veterans’ programs and food banks added that many programs rely on state and private grants that would be disrupted if partner agencies were excluded from contracting. Dr. Isma Chaudhry, a physician and longtime nonprofit board leader, told legislators she often calls nonprofit CEOs directly to get emergency help for families and warned that cuts to partners would directly harm constituents.
Some members of the public used their three minutes to press broader political claims, including a call for an arms embargo and a ceasefire in Gaza from Selma Mohammad, who sharply criticized elected officials’ responses. Her remarks and earlier references prompted discussion among legislators about the scope of public comment and constituent priorities.
After roughly 30 speakers, Legislator Trish Bergin moved to recess the measure to allow further revisions and legal review; Legislator Dominick Thorne seconded. The clerk recorded the vote as 12 in favor and six opposed. Opponents of the recess included Legislators Rebecca Sanin, Jason Richberg, Tom Donnelly, Samuel Gonzalez, Steve Englebright and Ann Welker.
Presiding Officer Kevin McCaffrey said the recess would allow staff and counsel to refine the bill and resolve technical and legal questions raised in the hearing. The matter was recessed for further work and may return to committee for revision before any final vote.
The Legislature later approved other business, including unrelated local laws and capital appropriations, and adjourned at 3:50 p.m.
