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Legislative News and Views - Rep. Nels Pierson (R)

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Pierson Guards Nonprofits

Monday, April 11, 2022

As more and more groups are trying to claim nonprofit, tax-exempt status, Representative Nels Pierson (R-Rochester) is ensuring that these organizations are legitimate and serve a purpose.

“What we don’t want is a few bad actors to tarnish the reputations of necessary and meaningful nonprofits,” Pierson said. “These safeguards will make sure nonprofits provide what they claim and benefit our communities.”

As part of HF4682, nonprofits are eligible to receive grant money if they can file an IRS Form 990 for the two years prior to the grant agreement. Additionally, the nonprofit must not compensate an officer or employee in an amount greater than the governor’s annual compensation. A nonprofit may not have a board member or voting member who is a state employee or an elected official.

HF4682 sets additional parameters for eligibility, as well as notices of ineligibility,  grant application requirements and reporting requirements.