The city of Santa Ana is considering creating a non-profit community foundation that would be able to accept donations and solicit grants.
City officials want to form a non-profit organization with a 501(c)(3) status, which would allow it to receive tax-deductible donations. A community foundation could solicit grants, receive property, and sponsor or advance “worthy activities, programs and services,” among other functions, according to a report presented to the City Council during a meeting on Tuesday, Nov. 1.
“A community foundation could accept donations from the community, which in turn would use its local expertise to channel those resources to nonprofit organizations and address the most pressing community needs,” the report read.
Among the benefits cited is the possibility that becoming eligible for grants may be easier through a foundation because “some grantors require that recipients be a 501(c)(3) nonprofit organization.”
“Also, some major grantors have a policy against funding tax-supported institutions, but will provide grants to foundations,” according to the report to the council.
Council members didn’t take any action during the meeting this week but may be tasked with reviewing and considering creating a board for the non-profit and reviewing bylaws in the future, according to the staff report.
Source: Orange County Register
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