Lake County nonprofits describe finances, challenges and ask commissioners for closer partnership

At a Feb. 12 work session of the Lake County Board of County Commissioners, a group of local nonprofit leaders laid out how nonprofits in Lake County are governed and financed, described operational constraints such as restricted grant rules and delayed reimbursements, and urged closer, clearer collaboration between nonprofits and county government.

The presentation, led by Emily Olson, executive director of Cloud City Conservation Center, and Idalia Conderas, CEO of Full Circle of Lake County, covered nonprofit legal structure, board duties, budgeting and reporting requirements. ‘‘We believe that nonprofits are a vital part of our community,’’ Olson said, explaining the session’s goal of helping county officials understand how nonprofit decisions and finances work.

Nonprofits’ role and internal rules

Speakers described common governance features: volunteer boards that generally approve budgets and set executive salaries, a legal obligation to invest surplus funds back into an organization’s mission, and the requirement to file IRS Form 990 and an annual report with the Colorado Secretary of State. Alice Pew, who founded Full Circle in 1991 and spoke as a citizen, described nonprofits as ‘‘the soul of the community’’ and noted the sector’s long history in Lake County.

The group emphasized that boards have three legal duties — care, loyalty and obedience — and that many organizations rely on board approval to take on new programs or spend outside the adopted budget. Idalia Conderas said the IRS will not allow funds to be spent outside an organization’s mission.

Finances, audits and fiscal sponsorship

Presenters explained that nonprofits combine multiple revenue streams: grants (often restricted to specific programs), private donations, earned income, event revenue and occasional major gifts. Olson and other speakers stressed the difficulty of securing general operating funds — money nonprofits can use for rent, payroll and reserves.

Nonprofits described standard oversight and reporting: annual Form 990 filings (publicly available but often months delayed online), Secretary of State annual reports in Colorado, and an audit requirement when an organization receives more than $750,000 in federal funds in a year. Speakers said most funders also require periodic financial reporting tied to grants.

Lake County Community Fund’s fiscal sponsorship role was discussed as a way for some organizations or government entities to accept charitable donations without having their own 501(c)(3) status. Kelly (last name not specified), who said she formerly served as secretary for the Lake County Community Fund, clarified that ‘‘the Lake County Community Fund handles its fiscal sponsorships, [but] they do not accept all financial and legal liabilities for that group’’ and that the limits are spelled out in each agreement. John (no last name provided), representing the Community Fund, described an estate gift administered through fiscal sponsorship: a $253,000 gift to the Lake County Public Library that otherwise would not have been possible without sponsorship. He also cited a disaster relief fund that raised roughly $300,000 for rental and utility aid during the COVID emergency.

Operational challenges and local impact

Speakers listed recurring operational problems: delays in reimbursements from state and federal agencies (one nonprofit recounted nearly $180,000 in outstanding receivables caused by a state-level processing issue); limited local housing options that make recruiting specialized staff difficult; high employee health-insurance costs (one presenter cited $1,800 monthly for family coverage); shrinking volunteer pools; and grant rules that restrict overhead. One nonprofit representative said an overhead allowance in many grants remains around 10 percent, though some funders have recently increased that to 15 percent.

Several presenters described local economic impact figures and fundraising wins. A representative of the Trail 100 Legacy Foundation said the foundation raised just over $680,000 last year, money that the speaker said is re-invested into the Lake County community. Another speaker described a multiyear estate gift and other major donations that have had substantial local effect.

Requests to county officials and suggestions

Presenters urged Lake County officials to improve communications and public messaging about nonprofit work, offer consistent procedures when the county is asked to support organizations, and avoid informal requests for detailed staff-level financials outside normal funding-review processes. Speakers said it is normal for funders to request financials when the county is considering formal funding, but that asking for detailed payroll or client-level data outside that context raises legal and confidentiality concerns.

Nonprofits asked county staff and commissioners to help counter misinformation and suggested several outreach tactics including coordinated messaging from government, quarterly in-person town halls and using county channels to amplify nonprofit services. Carly of Build Generation said she is working with local government staff to organize town halls.

What happened next

No formal board actions or votes were taken at the session. Presenters and commissioners discussed follow-up meetings, including broader community conversations about housing and contingency planning. Several nonprofits said they would continue to seek work sessions with county leaders to share additional details on specific programs and to coordinate around services.

Ending

Speakers closed by thanking commissioners and reiterating a desire to ‘‘hit the reset button’’ on county–nonprofit relations through clearer communications and ongoing collaboration. The session concluded with multiple nonprofits offering to provide additional materials and to meet again with county staff on specific topics such as housing and grant reporting.