Doing well by doing good

The nonprofit money gusher continues. Despite talk of not doing earmarks for named nonprofits this budget cycle, a few are slipping through the net. Case in point is SF 2298, the housing bill, one of the few budget bills to make it through the 2025 regular session and onto the Governor’s desk.

For example, the housing bill includes a $1 million direct appropriation for the nonprofit Build Wealth MN Inc. (Line 7.27). The money is to be used for a vague purpose.

This appropriation is for a grant to Build Wealth Minnesota to provide a family stabilization plan program including program outreach, financial literacy education, and budget and debt counseling.

Among those building wealth is the nonprofit’s CEO. According to the nonprofit’s most recently filed tax return (for 2023), the CEO received total compensation of over $432,000 that year. In fact, salaries and wages represents the company’s largest single expense item.

The $1 million for the program matches the amount Build Wealth received in the last budget. Also, in the last budget, the nonprofit was given an additional $5 million direct appropriation for a total of $6 million.

The bill includes (Line 8.7) another earmark for $2 million to the nonprofit Midwest Minnesota Community Development Corporation (MMCDC). According to its 2023 tax return, this nonprofit boasts net assets of over $75 million. But I’m certain they appreciate your additional contribution of another $2 million. In the last budget, MMCDC received a direct appropriation of $100 million (not a typo).

In 2023, the nonprofit reported paying eight (8) employees six-figure-plus salaries. The CEO was paid over $411,000.

Nice work if you can get it, and you can get it, if you try.