Commission tables draft policy for city nonprofit funding after questions about religious institutions

The City Commission on March 13 tabled a draft policy that would set application standards for nonprofit funding from commission‑allocated dollars after public comment and legal questions about a clause excluding religious institutions.

Staff and the city attorney presented a proposed procedure that would require written applications, budgets, 501(c)(3) documentation and impact statements for any nonprofit requesting city dollars. One paragraph in the draft said the city “shall not consider funding requests for or religious institutions,” language a public commenter said would exclude many faith‑based organizations that operate as 501(c)(3) nonprofits and provide homeless and other social services.

During public comment, a representative highlighted that the city recently approved funding related to a shelter operating in leased church space and argued the draft exclusion could violate the First Amendment by discriminating against religious nonprofits. The city attorney advised commissioners the language was intended to avoid direct funding of a religion (church‑and‑state concerns) but acknowledged the phrasing needed clarification.

Several commissioners said they wanted legal clarification on how to treat faith‑based 501(c)(3) groups and how to define eligibility and said they preferred to set clear benchmarks and rotating funding cycles for nonprofits. A motion to table the item passed so staff and legal counsel could return with revised language and recommendations.

Why it matters: This policy would guide how taxpayer dollars are distributed to nonprofits; the legal distinction between faith‑based programs and religious institutions has implications for constitutionally permissible funding and civic programs.