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Westminster Community Foundation seeks city help to remedy bookkeeping issues, asks for temporary operational funding and a new MOU
Summary
The Westminster Community Foundation told council it found bookkeeping lapses and missed IRS filings and asked the city to withdraw an invoice, provide short‑term operational funding and work on a new oversight agreement.
The Westminster Community Foundation’s acting executive director, Brian Head, briefed council Monday about recent organizational problems the foundation discovered and requested short‑term operational assistance while the nonprofit rebuilds its governance and fundraising capacity.
Head said the foundation — which has historically partnered with the city and used a city employee as the executive director under a memorandum of understanding — has missed IRS Form 990 filings since 2022 and now faces bookkeeping and compliance issues. He described the arrangement in which the executive director reported through the city’s parks and recreation director as structurally flawed and said the foundation has engaged a nonprofit accounting firm to reconcile books and to negotiate any penalties with the IRS.
Head told council he is serving as acting executive director at a substantially reduced stipend to stabilize operations and to recruit a permanent director who can expand sustainable giving and donor relationships. He said existing grant funding and recent awards (including HUD funds routed through the foundation for a partner nonprofit and a $12,500 Adams County award) provide some operational runway.
The foundation asked council to take three steps: (1) withdraw an outstanding city invoice for $27,388 representing the foundation’s portion of the previous executive director’s salary in 2024, (2) commit $41,713 in city funding for operational support this year (to cover remaining salary/benefits funds already budgeted), and (3) direct city staff to work with the foundation to draft an updated memorandum of understanding that clarifies oversight, roles and financial arrangements.
Board chair Michael Lazar and board members attending the meeting said they will pursue stronger donor development and governance practices. Councilors asked for clarity and metrics and several said they would be open to short‑term support if the foundation demonstrates a concrete plan and milestones toward self‑sufficiency. Acting city staff said they would work with the foundation to draft a new MOU and return to council with options.
Council took no formal vote during the study session; staff and the foundation were to follow up with draft MOU language and potential conditions tied to any short‑term city funding.
