Fiscal safeguard increase for state grants to non profit organizations

SF 981 increases fiscal safeguards for Minnesota state grants to nonprofit organizations. It requires nonprofits to submit two years of IRS Form 990, limit officer compensation to the governor’s salary, and prohibit state employees or elected officials from serving on their governing boards. Nonprofits receiving over 50% of revenue from state funds must also provide certified financial audits and undergo background checks for board members. The bill mandates detailed reporting on fund usage, program outcomes, and annual legislative reports to track grant effectiveness. These requirements apply to all state grant recipients under Minnesota Statutes.