(The Center Square) — Nonprofit groups that receive public dollars in Louisiana could soon face tighter oversight and more robust reporting requirements under a bill advancing through the Legislature.
Senate Bill 184 by Sen. Heather Cloud, R-Allen, aims to standardize and streamline the way nongovernmental organizations apply for and report on state funding.
The bill is scheduled to be heard by the Senate Finance Committee again on Monday.
The proposal would require nonprofits to provide financial audits, statements of public purpose, and data on performance outcomes before receiving state appropriations. They would also need to maintain a physical office in Louisiana, be registered as nonprofits for at least a year, and keep administrative costs under 15% of total expenditures.
The legislation would build a centralized, searchable portal using the existing Louisiana Checkbook platform to consolidate public financial data.
According to Cloud, the system would allow lawmakers, auditors, and citizens to evaluate how effectively state funds are being used by nonprofits involved in services such as mental health, truancy prevention, reentry programs, workforce development, and more.
“The beauty of it is the data is already being collected by the agencies and the Treasury,” Cloud said. “But the problem is, it doesn’t exist in a centralized portal for review.”
The bill would also prohibit NGOs from receiving state funds for more than three consecutive years without undergoing a performance-based reapplication and review. Any group that fails to file required reports would face a five-year ban on receiving future state funds.
It further bars nonprofits from using any state dollars — directly or indirectly — for lobbying purposes and prohibits elected officials or their family members from holding paid or decision-making roles in recipient organizations.
Cloud introduced a substitute version of the bill that she said simplifies compliance and reduces the burden on smaller organizations, while still holding them to basic standards of transparency.
“We clarified and streamlined the audits, the reporting, the compliance requirements,” she said, adding that the substitute integrates more seamlessly with Louisiana Checkbook to save costs.
The measure comes amid growing legislative scrutiny of how state appropriations to NGOs are managed — particularly in budget cycles when earmarked allocations have drawn criticism for lack of transparency or effectiveness.
“It fosters high-impact outcomes and guards against low-impact investments,” she said. “We’re asking: Who’s getting the money? How much? Where are they from? What are they using it for? And what are the measurable outcomes?”
