Newberry City Commission Approves Municipal Non-Profit

NEWBERRY – During the Jan. 13, 2025, meeting of the Newberry City Commission, Grant and Funding Manager Jane Sullivan proposed the creation of a municipal non-profit organization to enhance the city's ability to secure grants. The commission unanimously authorized Sullivan’s request to move forward with the initiative, paving the way for Newberry to access funding opportunities otherwise unavailable to government entities.

Sullivan explained that municipalities are permitted to create non-profit organizations under the Internal Revenue Code 501(c)(3), provided the non-profit is separately incorporated and fulfills exempt purposes as outlined by the IRS.

To meet these requirements, the City of Newberry will need to file Non-Profit Articles of Incorporation with the State of Florida and submit Form 1023 to obtain a 501(c)(3) determination letter from the IRS.

Sullivan detailed how the non-profit would be structured, noting that the Newberry Mayor and City Commission would appoint Newberry career staff members to serve as the Board of Directors. The Commission may also, if desired, form an Executive Committee comprised of community members to oversee day-to-day management responsibilities.

Importantly, the City will retain ultimate oversight of the non-profit, reviewing all expenditures and requiring an annual report to the Commission to ensure accountability and transparency.

Sullivan highlighted the advantages of creating a municipal non-profit, emphasizing the ability to pursue funding sources unavailable to government entities.

“The benefits of a municipal non-profit allow the 501(c)(3) to secure funding that is not offered to government entities, such as some foundations, corporate foundations, and specific federal funds earmarked for 501(c)(3) non-profit organizations,” said Sullivan during her presentation.

By establishing a non-profit arm, Newberry positions itself to compete for grants from a broader range of sources, including private and corporate foundations, which often restrict funding to non-profits.

Following the Commission’s approval, Sullivan will begin the process of filing the necessary documents to establish the non-profit and secure 501(c)(3) status. Once operational, the non-profit will work closely with the city to identify and apply for funding opportunities that align with Newberry’s goals and priorities.

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