Nonprofits & Public Disclosure

While it seems clear that all nonprofits—because of the tax exemption benefit they receive from the government—need to embrace the right of the public to know about anything they do; some corporate laws give them more protection than is perhaps warranted, a situation recently rectified in New Hampshire, as reported by the Nashua Telegraph.

An excerpt.

“EDITOR’S NOTE: Newspapers are watchdogs of government because of laws that protect the public’s freedom of information and right to know. Sunshine Week is an annual examination of government’s responsiveness to citizens. The project is spearheaded by the American Society of Newspaper Editors and includes the participation of newspapers across the country.

“In following the state Right-to-Know Law, municipal governments have to make most information available for public review.

“Allowing citizens to see how elected officials and public employees govern is the underpinning of the checks and balances system conceived by the Founding Fathers.

“But what happens when a nonprofit has a quasi-public function and its staff salaries are paid largely by tax dollars?

“Until last month, a nonprofit corporation fitting that profile had contended its salaries and other information were not for public consumption. The Local Government Center in Concord for seven years fought the release of its salaries, arguing that its wages were not of public interest.

“But the state Supreme Court rejected that opinion and in January ordered LGC to give a list of staff salaries to the state firefighters union as well as the public. The Professional Firefighters of New Hampshire wanted to see the salaries, and other documents, because the union contends LGC has misused public money.”