A symbol of accountability in nonprofit organizations through government transparency.
Representative Patricia Serpa has introduced a transparency bill in Rhode Island aimed at requiring nonprofits that receive state funding to publicly disclose executive salaries. This legislation responds to growing concerns over high executive compensation in the nonprofit sector amid layoffs and budget constraints. The bill seeks to shed light on how taxpayer funds are used and ensure accountability from nonprofits. A companion bill has also been introduced in the state Senate, emphasizing the importance of transparency and resource allocation in organizations serving vulnerable communities.
Rhode Island – Representative Patricia Serpa has introduced a new transparency bill aimed at increasing accountability for nonprofits that receive state funding. The proposed legislation mandates that these organizations publicly disclose the salaries of their top executives on their websites. The initiative is a response to rising concerns about excessive compensation packages at a time when many nonprofits are facing layoffs and budget constraints.
The bill, designated as 2025-H 6265, is designed to shed light on how taxpayer money is utilized within nonprofit organizations. This move comes in the wake of striking salary increases among nonprofit CEOs, despite significant layoffs. For instance, the CEO of Providence Community Health Centers (PCHC), Merrill Thomas, saw his salary increase from $421,180 in 2019 to $650,669 in 2023—a staggering 47% increase over five years. Concurrently, PCHC has cut its workforce by 12%, laying off around 70 employees.
Critics of high executive salaries at nonprofits highlight the apparent disconnect between increasing compensation for leadership and the struggles faced by the organizations, particularly in the context of serving low-income communities. As part of a broader trend, the PCHC has not only reduced its staff but also closed its Olneyville healthcare center, contributing to a total of 110 job cuts in recent months.
The proposed bill would require nonprofits to provide transparent information regarding the salaries of their top ten highest-paid directors, officers, and employees. This effort aims to address growing concerns over the fiscal responsibility of nonprofit boards and the appropriateness of CEO compensation in relation to the services they provide to the community.
Serpa’s concerns are compounded by the situation surrounding Lifespan’s former CEO, Timothy Babineau, who was granted a severance package of over $6.8 million after advocating for increased state funding. Such instances raise questions about the appropriateness of compensation in the nonprofit sector, particularly when contrasted with the financial hardships that many of these organizations endure and the essential services they provide to vulnerable populations.
A parallel version of this legislation, 2025-S 0579, has also been introduced in the state Senate by Senator John P. Burke. Both bills position themselves as a necessary measure to counteract the growing disparity between executive salaries and the wages of regular employees within the nonprofit sector.
The push for transparency reflects a larger movement within Rhode Island and across the nation, aiming to ensure that organizations receiving public funding demonstrate responsible allocation of resources. It also underscores the need for nonprofits to align executive compensation with their mission-driven goals and the communities they serve.
As the bills advance, advocates stress the importance of transparency and accountability, pointing out that the public deserves to know how nonprofits are compensating their leaders, especially when these organizations rely heavily on taxpayer dollars.
This legislative effort comes at a crucial time when conversations about economic disparity, the role of nonprofits, and accountability for taxpayer money are increasingly relevant. The outcome of these proposed bills could significantly impact how nonprofit organizations operate and how they are perceived by the public moving forward.
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