Delinquent nonprofits still getting state money; critics demand tighter controls

(WBFF) — Maryland’s fiscal outlook may be grim, but some nonprofits that are not complying with state solicitation laws are still receiving government money, raising questions about oversight and accountability.

One example is the Greater Baltimore Urban League, which has received almost $1 million in Baltimore city tax dollars over the past two years. The organization has been out of compliance with state solicitation laws since 2020, and for six years the state has deemed the Urban League delinquent. Despite that status, government funding has continued.

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Del. Ryan Nawrocki said the current system is not preventing taxpayer dollars from going to organizations that are not meeting state requirements.

“Clearly the mechanisms in place do not serve to provide appropriate guardrails,” Nawrocki said.

The state’s enforcement system relies largely on voluntary compliance. Last year, the state issued more than 9,000 notices to nonprofits among Maryland’s 42,000 nonprofits in total, but in many cases those notices have not compelled organizations to comply with state solicitation laws. At the same time nonprofits are notified of delinquent status, many also continue to receive government dollars.

Taxpayer advocate David Williams called for the state to stop funding nonprofits that are not following the rules.

“The least the state can do is cut off the spigot to those who aren’t in compliance with state regulations,” Williams said.

Nawrocki pushed for a statewide inspector general to investigate, saying they could help identify problems in how nonprofit compliance is monitored and enforced.

“I do think the inspector general could help uncover many of these issues,” Nawrocki said.

State officials are not sure how many state dollars are going to nonprofits that collect government funding while refusing to comply with state solicitation laws.

Williams said additional oversight is needed when nonprofits receive taxpayer money.

“There’s an added layer of secrecy when a non profit receives money that’s why there needs to be an added layer of oversight when a non=-profit receives taxpayer money,” Williams said.