The City Council voted 5‑0 to approve a resolution initiating formation of the South El Monte Community Benefit Foundation, a California nonprofit public‑benefit corporation intended to raise tax‑deductible funds for local programs such as scholarships, parks, recreation and community events.

City Attorney staff outlined the formation process and compliance requirements for federal and state tax exemption, noting two IRS application paths: Form 1023 (longer review, for organizations expecting to raise >$50,000 annually) and Form 1023‑EZ (expedited for smaller organizations). The city attorney advised that the city may front modest start‑up costs and be reimbursed by the foundation; estimated initial fees listed in the resolution totaled about $2,000 to cover state and federal filing fees and accounting assistance.

Councilmembers asked about governance and safeguards. The city attorney said the city council would appoint the foundation’s board of directors, that terms could be staggered (four years suggested), and that boards are subject to public‑meeting rules when they hold meetings. Council members also asked whether donors could earmark contributions; the attorney confirmed that earmarked donations must be used for the donor‑specified purpose.

Councilmembers expressed support for the foundation as a way to expand fundraising, offer donors tax deductions and segregate charitable activity from city operations. The council approved the resolution and directed staff to proceed with the steps described in the city attorney’s presentation.