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Council Adopts New Rules for County Grants to Nonprofits, Keeps 10% Administrative Cap
Summary
Bill 176, intended to clarify grant definitions and award procedures for county-funded nonprofit grants (including GIA and contingency relief funds), passed second reading; finance will prepare clearer guidance defining direct vs. indirect costs and administrative overhead.
On Aug. 7 the council adopted Bill 176 (draft 3) at second and final reading, a package of changes clarifying definitions, prioritization rules and conditions for county grants to nonprofit organizations. The bill retains a 10% cap on administrative/overhead costs and directs the Finance Department to provide clearer guidance and examples.
Vice Chair Inaba, who sponsored the measure, said the intent is to harmonize county grant practice with standard federal guidance and improve transparency. Finance Director Diane Nakagawa told the council they had "done some research on the administrative costs" and found the 10% cap is "a standard guidance in a lot of federal, regulations," and offered to draft definitions and an applicant checklist to reduce confusion. Several council members urged care to avoid unintended consequences that reduce nonprofit program capacity; the finance director agreed to provide examples distinguishing programmatic from administrative costs.
The ordinance passed on final reading; staff will draft implementing guidance and a vendor/funding report option to improve transparency about multiple county funding streams for nonprofit applicants.
