How to fund non-profits? - An opinion

Submitted by Dave Lott

July 2, 2014 1:00 a.m.

The issue raised by Commissioner Pat Gass as to whether the City’s taxpayers should be funding contributions to non-profit organizations is a legitimate one and worthy of additional conversation. Opponents say that such funding should be voluntary, not forced, contributions from the citizens as providing such social services support is not a vital and necessary function of government.

Proponents of funding through property taxes argue that such contributions ultimately offset expenses that would be incurred by the City’s law enforcement, fire rescue and other departments in dealing with the fallout from individuals not receiving the care or attention needed to keep them healthy and safe. Additionally, financial support from the City often allows the organization to receive matching or multiplier funds from grants and other funding sources as demonstration of their value to the overall community.

Regardless of the position that one takes, there generally is no question that these social organizations provide important and vital services to the community. The Fernandina Beach/ Amelia Island community is a very giving community as evidenced by the number of volunteer hours given to various organizations, charity fund raising events and private contributions.

The recently completed Pirates Playground located behind the Atlantic Avenue Recreation Center is a prime example of such generosity and dedication of individual’s time, talents and treasures.

But is the suggestion for an additional voluntary contribution program administered by the City a good solution as a funding source?

The City already supports a “Love Thy Neighbor” donation program where water utility customers can make a one-time contribution or ongoing monthly contribution through their utility bill. The funds are used to provide assistance to in-need people in paying their utility bill. The qualification of the applicants and distribution of the funds is handled through an arrangement with The Salvation Army. In the 2012-2013 fiscal year, there were contributions of just under $3,800 and $2,700 has been contributed so far this fiscal year.

As reported, the “nickel a day” contribution program would be a similar program allowing utility customers to make voluntary contributions. The major difference to the current program is that the distribution of the pooled proceeds to the selected non-profit organizations would be decided by the commissioners. I have heard some concern that such distribution decisions would be unfairly influenced by individual commissioners’ “favorite” organizations rather than from an objective analysis. While such a situation could occur, the need for all five commissioners to agree on the overall distribution should mitigate that concern to some degree.

There is no question that providing an easy means for people to donate has the potential for increased participation, but #1) should the City duplicate it current operational efforts and costs to serve as the collector for the program? #2) Or, should it simply provide awareness of these organizations and encourage individuals to make their donations directly to their favorite organization? #3) Or, should it continue to make taxpayer funded contributions of a reasonable amount?

Personally, I favor #3 as true sign of the commitment of city resources to our community. If we can commit hundreds of thousands of dollars to the animal shelter, I think support for our fellow brother and sister in need is justified.

Editor’s Note: Dave Lott has been a management consultant specializing in consumer banking and payment systems for 30+ years. As a former 11 year resident of the City, Dave has served on numerous City advisory committees. Dave served as Interim City Manager. He currently resides in Atlanta, Georgia.