Keene weighs tighter rules for nonprofit aid

Keene city leaders are considering changes to the way the city awards money to outside agencies.

Keene city leaders are considering changes to the way the city awards money to outside agencies as the next budget cycle gets underway from the beginning.

At Tuesday’s fiscal policy workshop at City Hall, councilors discussed narrowing the language used to decide which nonprofits and other groups can qualify for city support. One idea raised was to better define what counts as a social service, a change that could reduce the number of organizations eligible for funding.

The city now bases awards largely on the programs applicants propose, even when those services are not a direct match for municipal priorities. Several councilors want that process tied more closely to the Comprehensive Master Plan by identifying annual goals first and then asking agencies to seek money for those specific needs.

City officials said the workshop marked the first stage of reviewing the fiscal policy, which guides the structure of the operating budget and Capital Improvement Program and sets the rules for how resources are allocated. The policy is examined every year and can be adjusted during that review. After city staff consider the council’s ideas and any other revisions, an updated version will go before the Finance, Organization and Personnel Committee, and then require final approval from the full City Council.

The current budget, which took effect Wednesday, includes about $334,000 for outside agencies from the city’s $57 million general fund. Recipients include Monadnock Family Services, The Community Kitchen, the Keene Senior Center, Keene Housing Kids Collaborative and others.

Applicants seeking funds must describe why their work is needed, what it would cost the city if those services were unavailable, and how many Keene residents benefit. They also must identify funding from other municipalities when services extend beyond Keene, estimate savings tied to prevention or intervention, and explain how they avoid overlapping with services already in place. A group made up of councilors and staff reviews the requests and forwards recommendations to the city manager, who prepares the draft budget.

City Manager Elizabeth Ferland said by email Wednesday that if the council wants money reserved only for programs that directly advance Master Plan priorities, the city could create a separate funding track with its own standards.

Councilor Bryan Lake said outside agency support is intended to help Keene meet legal welfare responsibilities such as housing and food assistance, though he noted the range of groups receiving money has expanded over time. He pointed to The Community Kitchen as a major recipient and said the city should continue backing efforts that help ensure residents are fed.

Councilor Laura Tobin said the city should take a more deliberate approach and use the Master Plan to decide which programs are supported. She said that if food insecurity is chosen as a priority, agencies working on that issue could seek those dollars. In her view, the city currently reacts more to requests from organizations than to a planned set of goals, and she wants to be able to give residents clearer explanations for those spending choices.