Baltimore City Can’t Say How Much Taxpayer Money Goes to Nonprofits — And That’s a Problem

By MDBayNews Staff

A new investigative report from The Baltimore Sun has exposed a troubling reality in Baltimore City government: top elected officials cannot say how much taxpayer money is being sent to nonprofit organizations each year — nor where that money is going once it leaves city hall.

The article, part of the ongoing Spotlight on Maryland series, underscores a basic but consequential failure of governance. Despite billions in public dollars flowing through Baltimore’s sprawling nonprofit sector, neither the mayor’s office nor the City Council maintains a centralized, transparent accounting of those funds.

A Simple Question, No Clear Answer

Investigators asked city leaders straightforward questions:
How much taxpayer money goes to nonprofits?
How much of it is spent in each council district?
Should nonprofits be required to publicly disclose how they use public funds?

No one could provide a comprehensive answer.

Several council members declined to comment altogether. Others acknowledged that neither they nor their colleagues track nonprofit spending in their districts. Even city officials defending existing oversight mechanisms conceded that Baltimore lacks a single, user-friendly system that allows residents — or lawmakers — to see the full scope of public funding directed to nonprofits.

That admission alone should concern taxpayers.

Oversight Without Visibility

The administration of Brandon Scott maintains that nonprofits receiving city funds are subject to contract reviews, performance metrics, and reporting requirements, often routed through the Board of Estimates. But critics point out that existing dashboards do not categorize recipients by nonprofit status, provide district-level breakdowns, or show outcomes in a meaningful way.

In short, oversight exists on paper — but visibility does not.

One council member noted that accountability is not about suspicion, but stewardship. Without clear data, city leaders cannot confidently assess whether programs are duplicative, effective, or even necessary. That gap makes it nearly impossible to ensure taxpayer dollars are being used efficiently at a time when Baltimore faces persistent budget pressures, public safety challenges, and unmet basic services.

A Pattern, Not an Isolated Issue

The Baltimore City findings mirror a broader statewide problem highlighted earlier this month, when Maryland officials similarly struggled to account for the total amount of taxpayer funding flowing to nonprofits across the state. Estimates from outside organizations suggest billions of public dollars are involved, yet no centralized tracking system exists.

Previous investigations within the Spotlight on Maryland series have documented cases where nonprofits handled tens of millions in taxpayer funds while missing required audits or operating with minimal public disclosure. These cases are not presented as proof of wrongdoing — but as evidence of a system that relies heavily on trust while offering little transparency.

Why This Matters

Nonprofits play a critical role in Baltimore, delivering health services, youth programs, housing assistance, and community support that government agencies often cannot provide alone. But reliance on nonprofits does not absolve elected officials of their responsibility to track public spending.

From a center-right perspective, this is not an argument against nonprofits — it is an argument for basic accountability. Taxpayers deserve to know how much money is being spent, where it is going, and whether it is producing results.

Transparency is not bureaucracy. It is the foundation of public trust.

The Case for Reform

Some lawmakers have floated ideas such as enhanced disclosure requirements for nonprofits receiving large amounts of public funding, standardized reporting systems, and clearer public dashboards that allow residents to follow the money. These proposals stop short of heavy-handed regulation, focusing instead on visibility and data — tools any responsible government should already have.

Baltimore’s leaders routinely ask residents to trust the system. This investigation makes clear that the system itself does not always know where the money is going.

That should change.

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