Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S1195

Introduced
2/27/25  

Caption

Relative to public charity executive and board of directors compensation

Impact

The bill fundamentally alters how public charities manage executive compensation and governance structures. By imposing strict limits on compensation, S1195 aims to ensure that funds designated for charitable purposes are utilized effectively, preventing the excessive enrichment of individuals in leadership positions. This change may lead public charities to re-evaluate their compensation structures to comply with the new regulations, potentially affecting their ability to attract and retain qualified executives.

Summary

Senate Bill S1195, titled 'An Act relative to public charity executive and board of directors compensation,' aims to regulate the compensation of executives and board members in public charities with annual gross revenues exceeding $1 million. The legislation sets an annual compensation cap of $500,000 for officers, directors in executive roles, and senior managers. Additionally, it seeks to prohibit compensation for board members beyond expense reimbursement, which is designed to enhance transparency and accountability in the operations of public charities.

Contention

Notably, the legislation includes a waiver process, where public charities can seek justification for exceeding the compensation cap or for compensating board members. This process requires a public hearing and the engagement of an independent auditor, aiming to ensure community involvement and oversight. However, some stakeholders may argue that the waiver process is too cumbersome and could deter public charities from operating effectively. Concerns about the bill's potential to disincentivize experienced leadership in nonprofit organizations have been raised, indicating a need for a balanced approach that still allows for competitive compensation in an increasingly complex fundraising environment.

Companion Bills

No companion bills found.

Previously Filed As

MA S1067

Relative to public charity executive and board of directors compensation

MA S686

Relative to executive compensation for mutual companies

MA S1858

Relative to excessive executive compensation

MA S1064

Removing the charitable immunity cap

MA H2967

Establishing a tax on excessive executive compensation

MA H43

To create the executive office of housing and livable communities and to rename the Executive Office of Economic Development

MA S161

Relative to charitable alcohol donations

MA S389

Providing for certification of skilled nursing facility medical directors

MA H2629

Relative to the State Retiree Benefits Trust Fund Board of Directors

MA H3290

Relative to the MBTA board of directors

Similar Bills

No similar bills found.