Fiscal safeguards for state grants to nonprofit organizations increased, and report required.

HF 2537 strengthens oversight for Minnesota state grants to nonprofit organizations. It requires nonprofits to submit IRS Form 990 for two prior years, limits executive compensation to the governor’s annual salary, and prohibits state employees or elected officials from serving on governing boards. Nonprofits receiving over 50% of revenue from state funds must also provide certified financial audits and undergo background checks for officers/board members. The bill mandates annual reports detailing grant fund usage, program outcomes (like job creation or academic performance), and operating expenses, with additional reporting if a grant recipient is found ineligible. These changes apply to all nonprofits receiving state grant funds under Minnesota law.