By Elizabeth O. Manchester and Kelley J. O’Donnell
On June 26, 2025, Rhode Island enacted Bill 579 SUB A, Chapter 41, establishing new compliance and reporting requirements for nonprofit organizations operating within the state. Aimed at enhancing transparency and accountability in the nonprofit sector, the law mandates that any nonprofit receiving more than $50,000 annually from the General Assembly must submit an employee compensation report within 90 days of receiving the funds. This report must detail the total compensation, benefits, and other allowances for the five highest-paid employees earning over $100,000 annually. Notably, the law does not require disclosure of the employees’ identities. Nonprofit leaders are strongly encouraged to consult with legal counsel or compliance professionals to ensure timely and thorough preparation for these new obligations. Engage PSH Partner & Nonprofit Chair Elizabeth O. Manchester or attorney Kelley J. O’Donnell should you have any questions or concerns.
