Jeffersonville City Council to reconsider nonprofit funding approach

Currently, nonprofits can approach the city council for any project they wish to have funded, said councilwoman Callie Jahn, who plans to author the new nonprofit funding ordinance.

Over the past three years, Jeffersonville City Council has typically contributed around $4,000 to $5,000 a year to nonprofits from its special projects fund. Recently, the requests have been from nonprofits who want the council to buy a table at a fundraiser, although there was one large expenditure to Jeffersonville High School for a student trip. 

The nonprofits that come before the council with requests often are the same ones because they are the only ones who know that the council gives out funding, Jahn said. She was also told by other council members that prior to 2015, contributions to nonprofits had “gotten out of control,” which caused the council to unofficially rein in their spending. Councilman Nathan Samuel said that in 2007, the city was giving nonprofits $75,000 to $100,000.

These two things — the same nonprofits coming to the council and past overspending – inspired Jahn to clarify the council’s nonprofit contribution strategy.

“I’d rather it be advertised and more transparent," she said.

One ordinance she plans to propose at the next meeting would call for nonprofits to submit applications for funding twice every year: by May 1 and Nov. 1. The funding would come exclusively from Jeffersonville’s gaming revenues from Horseshoe Southern Indiana. Nonprofits could only receive up to $1,000 from a pool of $20,000 and only for projects, not operational costs.

But some council members told Jahn that they didn’t think the council should fund nonprofits with taxpayer money at all. Jahn found their concern valid so she plans to propose a second ordinance at next week’s meeting that would halt all council financial contributions to nonprofits. Nonprofits with line items in the city's budget, such as Jeffersonville Main Street and Jeffersonville Pride, still would be funded.

Samuel, who is also the CEO of local nonprofit Child Place, said that he leans toward that option. He believes the city should help nonprofits in other ways, but not through taxpayer money. His nonprofit has never approached the council for money, he said.

Samuel is open to the idea of contributing gaming revenues to nonprofits, but he still believes that that money could be going toward recouping expenses that the city is paying with tax dollars.

Currently, Jahn said she supports both options.

“I’ve been the one to really foster the conversation about it,” she said. “And I would like to just gauge where council members are on either side before I really take a stance either way.”

Jahn plans to call for an open discussion at the next council meeting among members.

Monday night, Samuel said he wants to make sure that the council thinks through its decision at the next meeting. He worried that if, for example, the Little League approached the council as it has in the past for help going to a state or national tournament, the council could still help them if needed.

Jahn said that Samuel’s concern was something to consider, and she suggested that the council consider those requests as promotion for the City of Jeffersonville, which would qualify the requesting organization for other funding.