Naperville plans 'more scrutiny' for fundraisers seeking grants
Grants to help pay for cultural activities in Naperville may someday not apply to events that function mainly as fundraisers.
The special events and cultural amenities fund, known as SECA, is designed to support events that celebrate the city's heritage, diversity and character - not necessarily to help nonprofits raise money, some fund stewards say.
During a review of the fund this year, the commission that oversees its operation decided applications from events that are primarily fundraisers need "more scrutiny," said Rebecca Boyd-Obarski, a city council member who's a liaison to the SECA commission.
"There was general agreement that we don't want to be in the business of funding fundraisers," Boyd-Obarski said. "But we need to figure out what that looks like."
The SECA commission is proceeding cautiously toward a time when fundraisers might not receive as much support from the annual $1.9 million grant made possible by a 1 percent citywide food and beverage tax.
First, two major fundraisers that long have received SECA funds - Ribfest and the Last Fling - have been assigned to a new category called "Legacy Events," which will allow them to seek grants as usual, Boyd-Obarski said. Organizers use the money to offset the cost of police, fire and public works services needed to support their events around the Fourth of July and Labor Day.
Then, beginning with the grant recipients awarded SECA money next year, the city will require statistics to be kept to prove the grant's effectiveness, Boyd-Obarski said.
"Is the money that we are granting making a difference?" is the main question Boyd-Obarski said the statistics will seek to answer. Grantees will be asked to provide how much of their event's budget comes from the SECA grant and how many people attend the activity. Such information hasn't been tracked consistently since the program began in 2004 when the city implemented the food and beverage tax.
"When somebody asks a question, 'Is SECA making a difference?' we want to be able to say, 'Yes,' or 'Not as much as it could,'" Boyd-Obarski said. "And we want to make it more impactful."
Before the reporting requirements and scrutiny for fundraisers go into effect, the city council is set to consider a minor update to the food and beverage tax ordinance to change the way the city reimburses itself for the costs of handling the SECA program.
Finance Director Rachel Mayer said in a memo her department spends $67,500 a year administering the food and beverage tax, and that money has been paid back out of the pot that is given to organizations hosting social and artistic events.
If the council approves the change, the reimbursement to cover city administration costs now will come out of total food and beverage tax receipts, leaving a full $1.9 million for SECA applicants.
Money received in food and beverage taxes above $1.9 million each year goes toward police and fire pensions, social service grants and city debt payments.