New contract makes Hilton Head Chamber of Commerce hand over receipts, invoices
The Hilton Head-Bluffton Chamber of Commerce has long served as the town’s destination marketing organization.
It’s also long been the subject of controversy and calls for greater transparency.
The organization receives a substantial amount of public money — close to $4 million in recent years — but has also long been secretive about its spending habits.
The chamber has previously denied council members requests for financial statements, credit card statements and detailed expenses.
At a special meeting Thursday, the Hilton Head Town Council unanimously approved the awarding of the Destination Marketing Organization (DMO) contract to the chamber of commerce for another three years, with the option to extend by two years.
According to the new contract, the chamber will now be required to provide 100% of all invoices and receipts paid as part of its annual accounting report.
Detailed budget requirements
Per the new contract, the Hilton Head-Bluffton Chamber of Commerce will be required to utilize a new form to disclose in detail all of its revenues and expenses, including how much it spends on advertising, salaries and benefits for full-time employees and office costs.
In addition to an annual audit, the chamber will be required to deliver an annual accounting report on or before Sept. 30 of each year that will include 100% of all invoices and receipts paid and its most recent federal and state tax returns.
The contract gives the Town Manager or representative from the Finance and Administration Committee the right to inspect financial records, including third party invoices.
The chamber will be required to post its yearly budget, marketing plan and accounting report on its website and ensure the documents are easily accessible to the public.
Ward 1 Council Member Alex Brown said the new contract “screams transparency.” He added that it also ensures the town council will be able to communicate the needs and wants of residents as it pertains to the marketing plan. The contract mandates that the chamber will present its budget and marketing plan to the town council at an annual workshop.
Chamber allowed to ask for more ATAX money
Ward 2 Council Member Patsy Brison criticized a section of the chamber’s contract that allows it to request for supplemental funds.
“If the DMO has almost $4 million to focus on marketing ... then why in the world do they need additional money?” Brison said. “We may have a lot of organizations here that need additional money, and a lot of them were cut this year. I don’t want to encourage the DMO to ask for money.”
Per its contract, the chamber receives 30% of funds collected from the Accommodations Tax — a 1% tax on hotel and lodging sales.
The town receives the first $25,000 and an additional 5% of this money. The rest of the pool is awarded out in the form of grants to organizations that promote tourism through arts and/or cultural events.
The chamber has received as much as $530,000 in supplemental funds in previous years, but does not receive extra money every year. Town Manager Marc Orlando noted that by default, the chamber is allowed to apply for an ATAX grant unless explicitly barred from doing so, since it is a nonprofit.
Ward 4 Council Member Tamara Becker responded that in the past, when the chamber requested additional funds, there were “extraordinary circumstances.” For example, Hilton Head relied on the chamber to boost tourism after Hurricane Matthew.
