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The online agenda for the Coeur d’Alene General Services Committee meeting today shows that Parks Director Doug Eastwood plans to ask the Council to include a line item in the City financial plan to help the Coeur d’Alene City Parks Foundation pay its expenses. The Foundation is a non-profit (IR Code 501(c)(3)), private corporation. Is Eastwood’s proposal appropriate? |
Here is the item from the General Services Committee agenda:
FINANCIAL ANALYSIS:
2. The CDA Parks Foundation has assisted us with the donations/acquisitions of over $4 million in land since their [sic] inception in 2004. They do incur costs on our behalf and have asked for assistance in meeting those costs; letter attached. I am recommending that we establish a line item for the CDA Parks Foundation for $7,500 annually. This can also be reviewed annually with your recommendation for each year’s allocation. (letter attached)
The Parks Foundation letter was not in the online packet, so we don’t know exactly what the Foundation is seeking.
Is Eastwood’s proposal appropriate? Under what conditions, if any, should the City be allowed to budget taxpayer dollars to help pay a private corporation’s annual operating expenses? Since the records of the Parks Foundation are not accessible under the Idaho Public Records Law and only some are accessible under the Internal Revenue Code, how will the public be able to determine exactly how its tax dollars were spent?
I’m sure the IRS would be interested in hearing about a municipal government reimbursing a non-profit’s expenses. Very interested.
Comment by Dan — November 24, 2008 @ 11:48 am
This may never make it past the City Council … or it might.
What I also wonder is why Eastwood, a city employee, is pitching this? According to the Secretary of State, the Foundation’s officers are Steve Wetzel, President; Dick Barclay, Vice President; Ron Ouren, Treasurer; and Jon Mueller, Secretary. Since this private nonprofit is supposedly separate from the city government (I know it’s not, but humor me), shouldn’t the sales pitch have been made by a Foundation officer?
Comment by Bill — November 24, 2008 @ 12:02 pm
A suggested approach:
Dear IRS:
A group of local citizens here in Coeur d’Alene, Idaho try to keep on top of local government activities. We try to offer constructive alternatives to frequent harebrained schemes by our city fathers/mothers, but these often misguided public officials just ignore or ridicule these well meaning citizens. So I ask you, is the request by the head of the city Parks and Recreation Dept. to have the City reimburse the private Parks Foundation for some of their expenses a proper and legal thing to do? Should taxpayers be forced to pay into a private foundation? It is interesting to note that the Foundation is a(501(C)(3)private foundation.
Comment by Gary Ingram — November 24, 2008 @ 3:24 pm
Before writing letters to the IRS, I’d suggest waiting to see what action, if any the GS Committee took on this. If it’s been sent on to the Council for final action, let’s see what action the Council takes. The next Council meeting will be December 2.
Comment by Bill — November 24, 2008 @ 5:18 pm
If this is approved, I see the future lineup at the trough beginning with the Library Foundation, Centennial Trails Foundation, etc.. In my opinion, this is way out of line. Why is Doug pitching this?
Comment by Susie Snedaker — November 25, 2008 @ 8:00 am
My guess is that the Parks Foundation needs cash to pay the bills they incur each year, and must not be doing well in donations of money. They probably have land but no cash.
Comment by mary — November 25, 2008 @ 10:40 am
Well, DUH! Whenever you have the government fork over money to a “charity,” e.g., $3,000,000 of taxpayer rainy-day money, it sours that charity in the eyes of the public. Why “donate” when we are required, under threat, to pay taxes? I find it amusing that our elected city officials seem to miss that key point.
Comment by Dan — November 25, 2008 @ 1:11 pm
To get a partial picture of the Coeur d’Alene Parks & Recreation Foundation’s finances, go to GuideStar and enter “Coeur d’Alene Parks Foundation” (without the ” marks) in the box that reads “Find Nonprofits”. If you have not yet registered with GuideStar, you can register for some limited services at no charge. Once you’ve done that, click on Find Reports, then scroll down to “Form 990 and EDOCS.” That will let you look at the last three years’ filings of IRS Form 990 by the Foundation.
Comment by Bill — November 26, 2008 @ 8:17 am