Questions raised over Key West City donations to nonprofit organizations
BY PRU SOWERS
KONK LIFE STAFF WRITER
A debate between Key West City Commissioners over whether to make a $5,000 donation to a local youth organization led to a plan to completely revamp the city’s contribution policy to local nonprofit agencies.
The current policy is not exactly formal. For the past several years, commissioners have traditionally approved substantial municipal contributions to three local organizations: $25,000 to the Boys & Girls Club, $30,000 to the “Idle Hands” summer youth job program, and $1,800 to the local chapter of the American Association of Retired People.
But two things happened this year that have led some commissioners to question whether using taxpayers’ money to supplement the budgets of the three nonprofit organizations is fair. Sponsored by Commissioner Teri Johnston, commissioners voted recently to give a $20,000 donation to a Fair Insurance Rates in Monroe County (FIRM), a grassroots organization fighting to lower property insurance rates. And at the May 19 city commission meeting, a proposal to donate $5,000 to Keys to be the Change, a youth and adults skills organization, opened a Pandora’s Box of sorts.
“Are you being consistent and are you being fair to all other youth programs in this city,” asked Margaret Romaro during the public comment portion of the debate over the $5,000 donation. “How can you possibly show favoritism to one youth organization over all the others?”
Romaro, a former candidate for mayor, emphasized she was not questioning the efficacy and value of the services offered by Keys to be the Change, a program aimed at helping local youths and adults improve health, wellness and skills for success in school and life. But she recommended that in the budget planning for the upcoming 2015/2016 fiscal year, commissioners should set aside a specific amount for donations and allow all of Key West’s 144 nonprofit organizations to apply for a piece of that pie. A ranking system would be put into place to divide up the money, she said.
Romaro’s proposal was quickly embraced by the four commissioners present at the May 19 meeting. Johnston added an amendment to the $5,000 donation resolution that would put a cap on municipal donations each year.
“I think that’s a way we can budget. It’s a way we can invest in our community and still be responsible with taxpayer dollars. I would agree with Margaret [Romaro] that would be a very good, fair way to handle this that wouldn’t eliminate anyone from applying,” Johnston said.
The resolution, however, stopped short of directing city staff to create an application and ranking process for nonprofit organizations. Assistant City Manager Sarah Hannah-Spurlock said after the meeting that while an application process would create a significant amount of extra work for staff, it would be a productive exercise. Currently, the only way a local nonprofit agency – other than the three traditional groups that have been repeatedly funded – can ask for money is to convince a city commissioner to put a resolution on a meeting agenda and hope that the other commissioners support it.
“There are so many nonprofits. It would be a fair and consistent way to give money,” Hannah-Spurlock said about creating a municipal donation policy.
Commissioner Tony Yaniz voted to approve the donation cap. But he warned that taking money away from the three nonprofit organizations that have traditionally received city money each year could force them to hold more raffles, golf tournaments or other types of traditional fundraising activities, putting pressure on their supporters to increase their pledges.
“I agree that we need to look at all the nonprofits. But let’s be clear about one thing. Not all the non-profits need the help as badly as some of the other ones,” he said.
Commissioner Mark Rossi was the lone vote against giving $5,000 to Keys to be the Change. He agreed that a more systematic method of fairly dividing the municipal donation pool needed to be established.
“It’s not fair to any of the nonprofits, the ones that were turned away,” Rossi said, explaining his vote against the $5,000 donation. “If you give to one, you have to give to all of them.”
Monroe County recently increased its annual donation pool 10 percent to $1.9 million. A total of 27 nonprofit social services groups applied for a portion of that money.
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From 1970 through 2005, I was involved in operating not for profit organizations in another state. For the last twenty-five of those years, I was the Executive Director of a very successful agency. I now live in the keys, in Key West. I am simply amazed at the way not for profits are funded, and operated here. There is little oversight or accountability in any aspect of funding or operating these groups.
I would be the first to say that most of them have very worthwhile goals and activities, and most of them involve well meaning and dedicated staff and volunteers. I am a proponent of not for profits as a best way for the community to address certain issues and problems. Locally, there are several organizations that take care of their business in an excellent manner and are to be commended. But that is only due to their own leadership and sense of purpose. Florida law on the subject is sorely lacking and indifferent, allowing for a vast range of quality, or lack thereof, in governing these organizations. The way the system works here leaves me breathless, and very pleased to be retired from this business.