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Colfax council asks staff to draft formal policy for city donations to nonprofits
Summary
Councilmembers debated proposed guidelines for city donations, including match requirements, reporting back by recipients and whether an outside body should manage grants; staff was directed to refine the draft and return to a future agenda.
The Colfax City Council directed staff on Thursday to return with a draft policy that would set standards for when and how the city donates public funds to nonprofits and other community entities.
Councilmembers discussed whether the city should require organizations to match city donations, how large matching shares should be, and what reporting and oversight should be required. Councilmember Caroline McAuley said she favors a match and a mandatory report-back so the public can see how funds were used. “Any group that is requesting taxpayer money should be open to providing that information,” McAuley said.
The request to develop a formal policy grew from an earlier council direction to staff. City Manager (name not specified in transcript) told the council he had assembled examples from other cities to start discussion and asked for direction. Some councilmembers proposed a 40–50% match to ensure recipients had “skin in the game.” Others warned against onerous financial audits for small volunteer groups.
Councilmember Larry (surname not specified) said he did not expect heavy-handed audits but supported requiring organizations to demonstrate fundraising efforts and to provide a post-event accounting or narrative. “I think anybody that we are willing to give our taxpayer money to should be willing to open their books to that level to show it,” he said. Several members emphasized the need for flexibility for new groups that may not have fundraising histories.
City Attorney (name not specified) advised that an outside committee could administer funds but that a council subcommittee would be subject to the Brown Act and public meeting requirements. The attorney also noted there is no legal requirement that city grant funds go directly to an IRS 501(c)(3); the council could allow other “equivalent charitable entities” if it chose to do so.
After public comment and additional discussion, councilmembers asked staff to redline the draft, incorporate the council’s preferences (matching options, reporting requirements and exceptions), and bring back a revised policy for further review and possible adoption at a future meeting.
The council did not adopt a final policy at the meeting; staff was asked to produce a new draft that reflects the feedback provided.
