House Bill 2181 amends Tennessee law to establish new requirements for nonprofit organizations that receive state or federal grants. It introduces a new part to Tennessee Code Annotated, Title 48, Chapter 101, which defines key terms such as "employee," "nonprofit organization," "person," and "salary." The bill mandates that these organizations compile, maintain, and publicly publish the salaries of all employees. If the nonprofit has a website, this information must be made accessible there and updated at least every six months.

Additionally, the bill provides a mechanism for individuals to take legal action if they believe a nonprofit has failed to comply with the salary disclosure requirements. Courts may grant declaratory or injunctive relief and award reasonable court costs and attorney fees to the prevailing party. The act is set to take effect on July 1, 2026, emphasizing the importance of transparency in nonprofit operations.