Process ongoing to change Fort Smith non-profit funding rules

The city of Fort Smith moved a step closer Tuesday to changing the way it funds non-profit agencies.

In years past, the city board allocated funds to local human service providers and other non-profits like The Fort Smith Classic, a PGA-sanctioned golf tournament that raises money for local charities. The city funded approximately $227,000 in requests for fiscal 2009 — an amount near what the city funds each year, according to City Finance Director Kara Bushkuhl.

But on Tuesday the board gave Tracy Winchell, with the city’s office of economic development, the green light to organize a committee to better manage the process.

Providing city money to the services began as an effort to assist The Boys & Girls Club and other groups that provided youth activities. As with any program that hands out tax money, requests for the money grew, with the board having to make tough and controversial decisions about who to fund and how much.

During an Aug. 11, 2008 study session of the Fort Smith Board of Directors, board members requested city staff devise a more formal and fair process. The first part of that process involves the board’s approval of a city staff proposal to create a task force to design a new application process.

“This task force will not award the funds, but will recommend a fair and impartial method for recruiting an awards committee and will set reasonable timelines designed to benefit not only the city but also area non-profit organizations,” noted a recent memo from Winchell to City Administrator Dennis Kelly.

Winchell said the 2010 city budget would have one line-item for the total funds for the service providers and the awards committee would make funding recommendations to the board of directors.

Winchell, in a report dated August 22, 2008, proposed the following requirements and limitations.
• Contracts would provide funding for capital items.
• Organizations would be eligible for a maximum of 3 consecutive years. Each contract would be for a separate capital project. Following one year away from the program, organizations could be eligible to reapply.
• Agencies would provide documentation of non-profit status.
• Agencies would provide current tax returns.
• Agencies would provide independent audits.
• Agencies would submit brief outcomes/results reporting.

Overall, Winchell’s memo said the goals of the funding would be to help the agencies improve or expand citizen services, achieve an “important step in the organization’s business model,” and meet an “unexpected demand” for services or construction/repair projects.

At the board’s Tuesday (Aug. 11) study session, Winchell presented six names for a seven-member board. A seventh person is being sought, Winchell said.
• Tabitha Embree, BancorpSouth
• Robert Morgan, community volunteer
• Genia Smith, representing the Fort Smith Heritage Center (Clayton House)
• Monica McKinney, Girls Inc. director
• Alvin Bradley, representing Lincoln Youth Center
• Rick Foti, director, Community Services Clearinghouse

“We need to begin to work next week,” Winchell told the board.