With the Cypress Council set to provide more than $1.5 million in taxpayer funding to support nonprofit organizations over the next two years, one Council member has suggested further restrictions to nonprofit support to make them more exclusive to the residents of Cypress.
According to the city’s staff report, the current Non-Profit Grant Request Program provides local nonprofits “with the opportunity to request funding and support for programs, services, and events that support the City’s and District’s recreational, educational, and life-affirming services.”
At its March 24, 2025, workshop, the City Council reviewed the Fiscal Years 2025-27 grant applications and the Contribution Policy for Non-Profit Organizations that establishes criteria and procedures for grant awards totaling approximately $1.5 million for the next two-year cycle.
While the city allowed all of these requests to be fulfilled, there is now doubt whether future nonprofit requests will be fulfilled without tightening existing limitations.
“I’ve never felt good about the city being a big nonprofit donor,” said Council member Kyle Chang. “We’re one of the more generous cities when it comes to giving away money,” he said.
Will the city officials have installed reporting requirements for nonprofits to justify their spending of those funds? Chang wants to modify and tighten any current requirements to refocus the city’s generosity to nonprofits serving the city of Cypress or at least governed by boards with Cypress membership.
“The first is that we should enforce a minimum percentage of participants who are residents of Cypress,” said Chang. “This is Cypress taxpayer money, and it should be going back to Cypress,” he said.
He questioned funding for national or regional organizations that perhaps have only 1% or 10% participation in Cypress. “Should those nonprofits be eligible for these grants?” he asked.
Chang suggested the city should “set a floor” of a 55 percent participation rate to qualify for the grants. “Nonprofits should be able to receive support if they meet a minimum requirement,” he said.
In addition, Chang wants nonprofits that receive Cypress taxpayer money to have leadership teams comprised of 55 percent Cypress residents.
“I think only 4 of 19 current grant recipients do not meet this requirement,” he added.
Jeff Draper, the city’s Director of Recreation and Community Services, acknowledged confirming participation rates for complex nonprofits that serve youth sports will be cumbersome, while he said a collection of rosters “from all of our sports groups” did indicate a 55 percent participation rate.
Chang thanked Draper and he is also interested in introducing “a cap per recipient , so in terms of costs, that’s a ceiling of how much we should spend per person from Cypress.”
“Nonprofits should not have to depend on the city to survive,” said Chang. “Fine with us helping out,” said Chang, “but we should not be their main source of income.”
“I have a suggestion,” said outgoing Council member Scott Minikus, “why don’t we leave just as it is, it has worked for this long,” he said. “Provide accountability, of course,” said Minikus, “but why do we need to change,” he wondered.
“I’m looking at this from a different perspective,” said Chang, telling Minikus “I don’t have the bias that many of you. I know you guys might be invested into these programs, you guys have friends in these programs and they probably started some of these programs,” he said.
“I’m just looking for a way to make sure Cypress dollars stay in Cypress,” said Chang.
Council member Bonnie Peat said residency requirements could incidentally force programs to move to other cities.
“If we feel that we don’t want to support a given program because of residency, they may be able to find someplace else, right?” she said. “They may be able to go to a different city and would hate to see that happen,” said Peat.
Peat said everyone has already signed their agreements for the next two years, so there is time to modify the policy, urging the Council to take into consideration in-kind contributions like the Women’s Club of Cypress, a nonprofit organization that receives support under the program using city facilities to meet.
“They (Women’s Club), as an organization, get no cash; they get use of the facility and that’s the funds we get. So we appreciate that, because we don’t have a clubhouse,” she said.
Peat said that, as an organization, they actually changed their bylaws two years ago to ensure the club was in step with the requirements in place then.
“It’s only right to have reporting requirements,” said Peat, but consideration should also be given to “what else do you do and how are you bettering the lives of our community.”
Mayor David Burke thanked the Council for a good discussion, noting that one of the nonprofits on the less had “zero” percent of their executive board from Cypress, yet received more than $300,000 in taxpayer funding.
“I think that it is a good question to ask, should Cypress taxpayers support organizations that mostly serve Cypress residents,” said Burke.
“I would suggest that we bring this back at some point in the future as we consider what other cities do, consider some of the good points everyone has made, and sooner or later, it will come back to the Council,” the mayor said.