Meeting: July 8, 2025
16 ITEM BY COUNCILMEMBERS DAN HALL, ELLIS RASKIN, AND MAYOR PRO
TEMPORE TOROSIS
Request of Councilmembers Hall, Raskin, and Mayor Pro Tempore Torosis that in order to ensure taxpayer dollars are used transparently, lawfully, and for the benefit of all residents, the City Council direct Staff to return with options to reform the conditions for official recognition of community organizations and participation in grant programs.
In Santa Monica, we hold a deep commitment to civic engagement and inclusive community participation. For decades, neighborhood organizations and community groups have played an important role in shaping public dialogue, strengthening local identity, and partnering with the City on outreach, public safety, and planning. As we look ahead, it is important to ensure that the structures guiding these partnerships remain transparent, equitable, and responsive to evolving community needs.
Today, organizations with official City recognition receive public funding, access to information, and are included in planning outreach. With those benefits comes a responsibility to operate with openness, accountability, and broad-based representation.
As the landscape of community engagement changes, now is the right moment to review the standards by which we confer official status—ensuring they reflect best practices in nonprofit governance and support pathways for emerging voices.
This motion reaffirms our belief that public trust is built through fairness and transparency. By modernizing the City’s recognition framework, we can foster stronger neighborhood partnerships, expand opportunities for inclusive participation of residents, and ensure that City support for community organizations aligns with our values of equity, stewardship, and civic integrity.
In order to modernize our civic engagement infrastructure, protect public funds, and strengthen institutional trust,
WE THEREFORE MOVE THAT THE COUNCIL:
1. Direct the City Manager, supported by the City Attorney, to coordinate a Council study session no later than September 30, 2025, to examine and present policy options for reforming the conditions under which community organizations are granted “official” status by the City and participate in the Neighborhood Association Grant Program. The study session should include but not be limited to:
1.1. A legal and administrative review of what privileges official status confers to neighborhood organizations (e.g., funding eligibility, formal consultation by City departments, etc.).
16 ITEM BY COUNCILMEMBERS HALL, RASKIN, AND MAYOR PRO TEMPORE TOROSIS Reforming Conditions for Official Recognition of Community Organizations
1.2. Clarification of the differences, rights, and regulations between the various nonprofit designations and examination of status of current and past recipients of the Neighborhood Association Grant Program or official recognition by the City, including specifically:
1.2.1. 501(c)(3) public charities (eligible for tax-deductible contributions and subject to strict nonpartisanship rules),
1.2.2. 501(c)(4) social welfare organizations,
1.2.3. 501(c)(6) member benefit organizations.
1.3. A review of federal Internal Revenue Service filing compliance and current federal tax-exempt status for all officially recognized community organizations for the past 25 years (or as far back as records allow).
1.4. Options to require annual officer elections, term limits, and democratic governance structures for any organization seeking or maintaining official status.
1.5. Requirement that all bylaws be posted publicly on organization websites and provided upon request to any member of the public.
1.6. Policy or programmatic support for new neighborhood organization formation and creation of a fair, transparent process for granting and revoking official status.
1.7. A legal and administrative review of potential requirements prohibiting any neighborhood organization—or its board—from endorsing political candidates in their official capacity, and whether violations could or should result in the loss of official recognition and associated benefits.
1.8. Review of Santa Monica Municipal Code §3.68.020(a)(h)(1) and recommendations for clarifying or amending the term “development of” in the context of officially recognized organizations' role in public safety.
1.9. Alternative models for City (especially Santa Monica Police and Fire Departments) engagement with residents outside of the neighborhood association structure, including:
1.9.1. Direct community meetings,
1.9.2. Targeted outreach through public facilities, neighborhood libraries, and local schools and Parent-Teacher Associations (in coordination with Santa Monica-Malibu Unified School District officials).
1.10. Options to require financial audits of all public funds or special privileges (e.g. reduced fees for rentals of public buildings) provided to community groups.
1.11. Examination of officially recognized organizations’ role in planning processes, including but not limited to:
1.11.1. Creation of historic districts,
1.11.2. Community outreach meetings,
16 ITEM BY COUNCILMEMBERS HALL, RASKIN, AND MAYOR PRO TEMPORE TOROSIS Reforming Conditions for Official Recognition of Community Organizations
1.11.3. Landmarks processes.
2. Further, direct the City Manager to:
2.1. Suspend distribution of funds to the Neighborhood Association Grant Program until a new policy framework is adopted, except as specified below.
2.2. Continue funding 501(c)(3) organizations for FY2025-2027 solely for open-invitation, community-building events (e.g., block parties, Make Music Day, Open Main Street), subject to independent audit and compliance with nonpartisan activity restrictions.
3. Direct the City Clerk to make any appropriate and necessary changes to comply with the above direction.
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