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S 2709Ethics & Transparency

General Assembly - Committees and Staff

Mandates detailed compensation and funding source disclosures for all nonprofits receiving any amount of funding from the General Assembly.

Held for study
Population
Affected
15
Email Legislator
Introduced Feb 27, 2026Committee Senate Judiciary

Plain-English Summary

This bill increases financial transparency requirements for nonprofit organizations that receive funding from the Rhode Island General Assembly. Previously, only nonprofits receiving over $50,000 had to report employee compensation. Now, any nonprofit receiving state legislative funding, regardless of the amount, must report. They are required to disclose the specific compensation package of their highest-paid director, officer, and employee. Additionally, they must list all other funding sources, such as fundraising and endowments. They must also report the total benefits for their top five employees earning over $100,000, though names are not required for this specific list.

For younger readers

This rule is for groups called nonprofits that get money from the state government to help people. Before, they only had to tell the government how they spent money on salaries if they got a large amount. Now, if they get any money at all from the state leaders, they have to tell the government exactly how much they pay their main boss and workers. They also have to say where else they get their money, like from donations. This helps the government see where its money is going and if the bosses are paid too much.

Who & Where It Applies

Impacted groups
Nonprofit organizationsNonprofit employeesGrant recipientsDonorsTaxpayers
Impacted communities
All

Constitutional & Fiscal Check

There is a significant constitutional risk regarding the First Amendment freedom of association. The requirement to disclose "any other sources of funding," which implies donor lists, mirrors issues in *Americans for Prosperity Foundation v. Bonta*. The Supreme Court has ruled that broad mandates disclosing charitable donors can violate the First Amendment by chilling association, especially if the government cannot prove a narrow tailoring to a compelling interest.

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Increases accountability for public funds by ensuring that taxpayer money granted to nonprofits is not being diverted to excessive executive salaries.
  • Promotes transparency regarding "dark money" by requiring the disclosure of all other funding sources, potentially revealing corporate or special interest influence behind certain organizations.
  • Ensures that organizations claiming to serve the public good are actually directing their resources toward their mission rather than administrative overhead or perks.
  • Creates a significant administrative burden on small, grassroots community organizations that may lack the staff to manage detailed compliance, potentially discouraging them from seeking state support.
  • Violates the privacy of donors and employees, potentially endangering those working for or supporting controversial social justice causes if their identities or funding sources are exposed.
  • Could be weaponized by political opponents to target and harass progressive advocacy groups by scrutinizing their internal finances and donor lists.
For Conservatives
  • Ensures strict fiscal responsibility by allowing taxpayers to see exactly how their money is being used and preventing waste on lavish benefits for nonprofit executives.
  • Exposes potential corruption or "grift" within the nonprofit sector, particularly among politically connected organizations that rely on government handouts.
  • Reduces the size and scope of the "nonprofit industrial complex" by adding regulatory friction to those seeking government handouts.
  • Represents government overreach into the operations of private entities, forcing them to disclose internal financial details and proprietary information.
  • Threatens the First Amendment rights of donors to support causes anonymously, a principle conservatives have historically defended to protect against government retribution.
  • Imposes heavy regulatory burdens on religious and charitable organizations that may simply want to help their communities without excessive government intrusion.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 10 additions · 4 deletions

SECTION 1. Sections 22-6-15 and 22-6-16 of the General Laws in Chapter 22-6 entitled "Committees and Staff" are hereby amended to read as follows: 22-6-15. Annual appropriations. The general assembly shall annually appropriate a sum that shall be necessary to carry out the provisions of §§ 22-6-10 — 22-6-14 and § 22-6-16. 22-6-16. Nonprofit funding transparency.

(a) Any nonprofit entity that receives grants or other funding in excess of fifty thousand dollars ($50,000) from the general assembly directly or appropriated through the state budget for any fiscal year shall, within ninety (90) days of the receipt of the grant or appropriation, provide information relating to employee compensation within the nonprofit entity provide a complete and detailed list consisting of the highest paid director, officer and employee, including the name and salary, costs and benefits, including but not limited to, health insurance, retirement or pension benefits, rental cars, lodging, communication devices, and any other form of compensation to the general assembly. Any other sources of funding, including fundraising, endowments, trusts, memorial gifts or any and all activities that fund the nonprofit entity shall also be included in the disclosure.

(b) The nonprofit entity shall disclose the total benefit package paid to the five (5) highest compensated employees with reportable compensation of at least one hundred thousand dollars ($100,000) from the organization during the previous fiscal year. This disclosure shall include a description of the position; the total salary or compensation paid along with all benefits provided, including but not limited to: health insurance, retirement, or pension contributions; and any other allowances for items such as automobiles, lodging, or communication devices. Provided, however, the name of the individual employee need not be disclosed.

SECTION 2. This act shall take effect upon passage.