Westminster Community Foundation board seeks short-term city funding, vows path to self‑sufficiency after governance problems

Leaders of the Westminster Community Foundation told councilors at the March 24 study session that the nonprofit has discovered lapses in bookkeeping and IRS filings and asked the city for short‑term financial support while the foundation re‑establishes donors, governance and an executive leadership search.

Brian Head, serving as the foundation’s acting executive director, said the foundation’s board recently retained a nonprofit accounting firm to bring the organization back into compliance with IRS requirements and to review its books. He said the organization had missed required IRS filings (Form 990) since 2022 and that the board is working to determine and negotiate any fines. The board also has replaced prior bookkeeping arrangements with a contract accounting resource while it corrects records.

Funding request and oversight ask: Head told council the foundation was invoiced by the city for a portion of the prior executive director’s salary and asked that the city withdraw that invoice. He also asked the city to commit to funding the foundation for the remaining balance the foundation says the city budgeted for 2025 compensation and benefits — Head identified that remaining balance as $41,713 — and to maintain the city’s 2026 budgeted contribution at the 2025 level to provide a runway while the foundation rebuilds its donor base.

Why it matters: The foundation has historically facilitated private gifts and grants for specific city projects (for example parks and memorial installations) and, according to the board, can serve as a local hub to coordinate donors and help residents and nonprofit partners access services. Board members said they intend to relaunch fundraising, pursue events and partnerships, and hire a permanent executive director once bookkeeping and governance issues are resolved.

Council response and next steps: Councilors praised the board members who stepped in and asked for guardrails, performance metrics and a draft updated memorandum of understanding (MOU) between the city and the foundation. City staff said they will work with the foundation to draft an updated MOU and return to council with options and documentation of the proposed short‑term funding. Several councilors urged the foundation to establish clear KPIs and a timeline for moving to self‑sufficiency.

Taper: The foundation’s board described the request for near‑term funding as a short runway to allow the group to stabilize, relaunch fundraising and seek permanent leadership. Council members asked staff to return with an MOU draft and options for council consideration.