Board Policy - Section Number: 03.02.02.30

Purpose

Hillsborough County contracts with local nonprofit organizations to assist County Departments in delivering services and to provide other services to County residents deemed valuable by the Hillsborough County Board of County Commissioners (the “Board”). The purpose of this policy is to establish nonprofit funding guidelines to assure that Hillsborough County is fiscally responsible in the allocation of County General Funds.

Applicability

This policy applies to nonprofit organizations funded by County General Funds. Awards from other funding sources are not subject to this Board Policy. Additionally, it does not apply to the following:

• Nonprofits selected to provide services through a competitive procurement process conducted by the Procurement Department.
• Nonprofits awarded funding through Board approved programs and policies.

Policy

It is the policy of Hillsborough County to engage local nonprofit organizations in the furtherance of the County’s Mission. On June 7, 2023, the Board adopted a set of protocols to create uniformity, transparency, and accountability in the funding of nonprofit organizations. This policy addresses those protocols as modified by the Board on February 7, 2024. In addition to these minimum requirements, the County also employs other procedures and requirements to uphold proper fiscal stewardship and ensure adherence to local, state and federal laws.

Prior to presenting the Board with a nonprofit funding agreement for approval, adherence to the following guidelines must be met:

Eligibility Requirements

1. Nonprofits shall provide the County with their most recently filed IRS-Form 990 (or internal financialstatementsifnotavailable). This document shall be current in accordance with Internal Revenue Service standards and not delinquent.IRS Form 990 is due on the 15^th day of the fifth month following a nonprofit’s fiscal year end.A six-month extension may be requested.The County will use these dates when considering which Form 990 should be submitted.
2. Nonprofits must be organized under the State of Florida or if organized in a different state, have a local office in Hillsborough County and have operated for at least two (2) years by December 31st of the year preceding the award.
3. Nonprofits shall provide evidence of compliance with Florida’s Solicitation of Contributions Act.
4. Nonprofits shall provide information to the County identifying all governmental funding sources compared to total revenues, and any circumstance where the most recently completed financial statement audit results in other than an unqualified opinion.

Proposal Standards and Restrictions

1. Any non profit proposals for new, increased, or a scope change in funding must be supported by a written funding proposal provided to the Board at least one week in advance of a Board vote to award funds.Funding proposals must demonstrate enhanced services to County residents and provide positive Community outcome measures.
2. Nonprofit proposals must clearly define and detail how their programs impact the health, economic, or social well-being of the clients served, as well as demonstrate how these programs fulfill a public purpose.
3. Nonprofit proposals must include performance measures that define the expected outcomes and impacts on the health, economic, and social well-being of the clients served, as well as demonstrate their contribution to the public good.
4. Nonprofit awards must be used for programmatic expenses (items recognized under Generally Accepted Accounting Practices – GAAP).
5. The County Administrator may not propose any new, increased, or a scope change for any nonprofit funding.Any proposed nonprofit funding changes must be Board initiated.

Nonprofit Funding

1. For nonprofit awards approved prior to February 7, 2024, recurring funding will be phased out in the proposed annual budget over a three-year period in the following manner:
• FY26 recurring funds will be reduced to 75% of the previous fiscal year
• FY27 recurring funds will be reduced to 50% of the previous fiscal year
• FY28 recurring funds will be reduced to 25% of the previous fiscal year
• FY 29 recurring funds will go to $0
2. Nonprofit organizations, inclusive but not limited to those listed in Table 1, are excluded from the recurring phase out if they meet any of the following criteria:
• Operate in County-owned facilities
  Nonprofits that operate from or provide services within facilities owned by the County. Examples: Museum of Science and Industry (MOSI), Tampa Bay History Center, University Area Community Development Corporation (UACDC), etc. This exemption does not apply to nonprofits operating in County-Owned real estate under an operating lease subject to Board Policy – Section Number 08.02.06.00 Non-profit Use of County Real Estate on a Long-Term Basis.
• Provide services that augment County responsibilities or programs
  Nonprofits delivering services that the County would otherwise provide — either currently or due to the establishment of a county program. Examples: Crisis Center of Tampa Bay, Safe and Sound Hillsborough, etc.
3. Beginning in FY29, all nonprofit awards shall be one-time, except those organizations that conduct operations in a County-owned facility, or provide a core County function, or due to the establishment of a County program.
• Each Commissioner shall be allocated an amount determined by Board action, for annualfunding, for ALL nonprofits which shall be included in the nonprofit section of the County’s annual budget.
4. Capital funding awards will only be made when there is a demonstrated ability by the nonprofit to access cash flow financing for the project and be subject to reimbursement by the County. (e.g. receiving an SBA loan and using the County award as collateral guarantor.)
5. Annual funding for each nonprofit subject to this policy shall be included in the Nonprofit section of the County’s annual budget.

• 	Table 1
  1	Crisis Center of Tampa Bay
  2	MOSI
  3	Tampa Bay History Center
  4	Commission on the Status of Women
  5	County Historical Commission
  6	Humane Society
  7	Safe and Sound Hillsborough
  8	Tampa Bay Sports Commission
  9	Tampa Hillsborough Homeless Coalition

Responsibility:

It is the responsibility of Departments managing nonprofit funding agreements to comply with this policy.