Hillsborough County commissioners weigh tighter rules on recurring nonprofit funding

At a Hillsborough County budget workshop, county staff reviewed the county’s nonprofit funding policy and commissioners discussed limiting recurring, automatic awards and adding stronger performance and disclosure requirements.

Kevin Rickey, management and budget, told the board the policy the board approved Feb. 7, 2024, effective Oct. 2024, established funding guidelines intended "to ensure that the county is fiscally responsible in the allocation of county general funds." He said the guidelines require nonprofits to supply their most recently filed IRS Form 990, identify all governmental funding sources, and submit written funding proposals at least one week before a board vote on any new or expanded funding.

The discussion matters because the county’s fiscal year 2025 budget shows about $15.4 million in nonprofit awards across two county general funds and 30 organizations. Rickey said 24 of those 30 first appeared in the budget before FY2000 and that awards added in recent years account for much of the increase.

Commissioners pressed on whether recurring awards should remain automatic. "No one has a right to previous year money," said Commissioner Wilson, arguing the county should not assume automatic renewals for nonprofits. Commissioner Wilson and others said boards should retain flexibility to evaluate organizations year to year. Commissioner Cohen asked when a vote on any policy change would occur, saying, "when do you propose that we actually vote on some kind of a motion related to this?" County staff and several commissioners said the item will return as a future commissioner item for formal consideration and that staff will prepare a draft policy outline and supporting charts for a board meeting vote.

Commissioners raised other concerns: some said recurring awards have been used in political advocacy by getting organizations to campaign, a point voiced by Commissioner Wilson; others urged more consistent performance measures and clearer exemptions for organizations that provide direct governmentlike services. Commissioner Bowles asked staff to confirm whether the projected revenue from changes would cover suggested reductions and was told staff would use reserves and present detailed breakdowns.

Discussion-only items and next steps - The board did not take a formal vote during the workshop. Commissioners directed staff to return the item as a future commissioner item with a proposed policy outline and supporting charts for a forthcoming board meeting. Kevin Rickey and staff will provide category breakdowns and historical charts to clarify which nonprofits are considered core services and which are discretionary.

What the policy requires (as presented) - Required documentation: IRS Form 990 and identification of all governmental funding sources. - New proposals, scope changes, or funding increases must be supported by a written funding proposal provided to the board at least one week before a vote. - The county administrator is not permitted to propose new, increased, or scope changes for nonprofit funding; those actions must be board initiated. - Future nonprofit awards are to be one-time (per the policy) and annual funding shall be listed in the nonprofit section of the county’s annual budget.

Clarifying details presented - FY25 nonprofit total across the two county general funds: approximately $15,400,000. - Number of nonprofits in FY25 budget area: 30 organizations. - Historical baseline: FY1998 nonprofit funding recorded at $5.6 million; recent increases concentrated after FY2016.

Why it matters locally - The policy affects county general funds and unincorporated-area funding streams and, indirectly, property taxpayers who fund county services. - Commissioners signaled they want clearer performance measurement, transparency about government funding sources for nonprofits and limits on automatic recurring awards.

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