INDIANAPOLIS— Governor Mike Braun signed an executive order on Tuesday requiring full transparency for nonprofit foundations and corporations created to assist state government agencies.
He also signed two more executive orders changing Indiana’s economic development approach: one to reassess the state’s economic development ‘regions to better capitalize on distinct regional strengths, and another to set wage growth and job creation for Hoosier workers as the ‘North Star’ of measuring success in Indiana’s economic development strategy.
Executive Order 25-43: Providing Transparency for State Government-Affiliated Foundations
“If organizations like the Indiana Economic Development Foundation were created to assist state agencies with public business, Hoosiers need full transparency into how these non-profits operate, who funds them, and what they do with the money. Today’s executive order mandates that these organizations file financial disclosures – including those missed over the past 10 years – so Hoosiers can have full transparency and accountability,” said Governor Mike Braun.
Hoosiers deserve transparency and accountability for how their state government represents them.
Many non-profit foundations have been created over the years to supplement state agencies, such as the Healthy Hoosiers Foundation, the Indiana Destination Development Foundation, the Indiana State Museu Foundation, and several others.
All government-affiliated non-profits must file an annual form with the IRS (Form 990) that describes where they get their funding, how much they brought in, and how it breaks down between programs and administrative expenses. This form provides Hoosiers with important transparency into these organizations.
However, in 2012, the Indiana Economic Development Foundation received an exemption from the IRS from future filings of its annual Form 990.
State-affiliated foundations are also required to file annual reports with the state budget committee, which the Indiana Economic Development Foundation has not done since 2019.
Governor Braun’s executive order today directs all state-affiliated foundations to comply with mandated reporting requirements, including filing any previously missed reports from the past 10 years no later than December 31, 2025.
All state-affiliated non-profits must also file an annual IRS Form 990, even if they were previously granted an exemption. That includes missed reports from the past 10 years.
These forms must be posted on the relevant agency’s website.
Executive Order 25-44: Prioritizing Wage Growth and Job Creation in Economic Development Initiatives
“Indiana is focusing our economic development efforts on the things that affect your family the most: raising wages and new job opportunities. More jobs and higher pay: that’s our North Star,” said Governor Mike Braun.
This executive order will set wage growth and job creation as the ‘North Star’ for Indiana’s economic development efforts, rather than capital expenditure.
Under this executive order, Indiana will now use the number of jobs created and the average wage of those jobs in all project proposals and performance reports related to state-supported economic development initiatives.
Executive Order 25-45: Standardizing Workforce and Economic Development Regions in Indiana
“My administration is committed to spreading economic development efforts across the four corners of our state, and one important way we’re doing that is starting from scratch on the map of our state’s economic development regions to reflect each area’s strengths better,” said Governor Mike Braun.
This executive order empowers Commerce Secretary Adams to make recommendations on redrawing Indiana’s regional economic development and workforce maps based on the unique strengths, assets, and industries of the different areas.
The new regional designations will represent the industry clusters, workforce capabilities, infrastructure, and natural resources that vary across Indiana.
