ATTACHMENT B

Administrative Policy Manaual
Chapter 1
General Management
ARTICLE XIII

ARTICLE X111

Section 1. Purpose. The purpose of this article is to establish procedures for the acceptance of donations to the City and specific City departments. A uniform set of procedures shall be followed in acceptance of all unsolicited donations and proper approval shall be obtained prior to acceptance. All cash, equipment, in-kind services, materials and sponsorships donated to the City or City departments shall be accounted for in accordance with the procedures set forth in this policy.

Section 2. Policy.

The City Manager will accept or reject offers of donations of money, equipment and in-kind contributions or sponsorships to City Departments or the City in general up to $35,000. Donated money will be expended for general purposes within the department or specified purposes, if agreed upon with the donor, as one-time supplements to the department’s operating budget. Donations of equipment will be considered based on program outcomes, department goals and needs. Each donation will be evaluated for usefulness and costs of potential replacement/rental rates will be considered. In-kind contributions and sponsorships for specific events will be treated in the same way as donated funds.

For monetary, equipment and in-kind contributions or sponsorships with values over $35,000, a Report to Council will be written outlining the purpose of each donation and the advantages and disadvantages of accepting the gift. For monetary donations, it will be stated in the Report to Council if the gift is a one-time contribution for a specific purpose or a contribution where the principal could be invested and the interest used to support all or part of a special project or program for a number of years. Council will decide, on a per case basis, if money should be accepted or rejected. A Report to Council will also be written so that Council can decide to reject or accept equipment valued at over $35,000. In-kind contributions and sponsorships of over $35,000 in value will also require a Report to Council. Corporations offering sponsorships or in-kind contributions will be requested to state the value of the offered service.

1. Gift or Donation. For purposes of this policy, the terms "gift" and "donation" shall be synonymous and may be a monetary contribution and/or equipment, in-kind goods or services or sponsorships which a City department or the City has accepted and for which the donor has not received any goods or service in return.

1. Responsibility. Upon acceptance of a donation by the City Manager, responsibility for management of donations shall lie with each department director having authority to expend donations up to the value of $35,000 as determined by the City Manager. All donations that exceed $35,000 must be approved by the City Council through presentation of a Report to Council.

The Finance Department will establish separate donation accounts for each City department and a general account for the City to accept donations and expend donations for specified purposes.

2. Accepting Unsolicited Donations. Unsolicited donations shall be accepted only if they have a valid use to the City.

1. Donors who wish to give a gift which is not specific to a given department may give a gift to the City in general. The Office of the City Manager’s staff will determine if such gifts should go to a specific department or to the general City donation fund.

2. If the item obviously has no use to the City or would be more effectively used elsewhere, the donor will be informed, as soon as possible, and referred to an appropriate agency by the City Manager, in the case of general gifts, or the City department where it was offered.

3. Proof of Ownership. If there is any question as to the legal owner of the donated item, proof of ownership may be requested.

4. Restrictions. Donors shall be encouraged to place minimal restrictions on donated items or funds, allowing the City department or the City in general as much flexibility as possible on determining its use.

3. Conditions for accepting/rejecting donations. Staff shall work with the donor to assure that restrictions are reasonable and do not leave the donor with unrealistic expectations regarding permanency of life of the donation. The following are criteria which may be applied in determining if a donation is appropriate for acceptance:

1. Is the use of the item or money for a designated purchase consistent with existing City policy, program outcomes and department/city goals?

2. Do restrictions upon the use of the item or funds make it practical to accept?

3. Do restrictions on disposal or retention of the item or funds make it practical to accept?

4. Is required accounting for the item or funds excessively difficult?

5. Would equipment require extensive repair or maintenance, and if so, is maintenance support available?

6. Does use of equipment or materials require the purchase of additional items to be useful?

7. Does acceptance of funds, equipment or in-kind services or materials present a conflict of interest for the City or its employees? Regardless of the value of the donation, if the donor is a contractor, potential contractor or there is reason to believe there may be a conflict of interest, then the City Manager will determine if the gift should be accepted, rejected or submitted to Council for approval.

8. Will the donation result in an increase to the City’s budget? Recipients must bear in mind that donations are to be considered one-time supplements to departments and should not be used to develop new programs or services which would require budget supplements from the City in the current or subsequent years.

1. Gifts valued at $35,000 or less.

1. Donation Receipt Form will be completed when donations are received, with the form completed by City staff (Attachment A). The donor shall retain a copy, the director shall be sent a copy and a copy will be sent to Finance.

2. The donor, not staff, must place a value on the gift.

3. The Director will acknowledge each gift by letter, thanking the donor for the gift. A draft letter is included (Attachment B).

4. Monthly summaries of all donations will be sent by departments to the City Manager who will notify the City Council and the Department of Finance which will oversee deposits and expenditure of funds, respectively (Attachment C).

5. If the gift is a capital good of the type that is usually handled by a General Services Program Manager, the Director should collaborate with the appropriate General Services Manager before accepting the gift. Follow-up procedures should be completed with the General Services Manager after the item is received.

2. Gifts valued at more than $35,000.

1. All gifts valued at more than $35,000 as determined by the donor require City Council approval. Subsequent to Council’s acceptance, procedures for acceptance of gifts in excess of $35,000 shall be the same as those in Section A above.

3. Cash Gifts.

1. Depositing and expending cash gifts: All cash gifts shall be deposited immediately with the Finance Department in accordance with City cash collection policy and procedure (Administrative Policy Chapter IV, Article IV) and shall be accompanied by a copy of the Donation Receipt. Funds will be deposited in each department’s donation account(s) or in the City’ s general donation fund, if appropriate. Funds can also be expended from those accounts. Each department director will oversee accounting and expenditures for funds that are deposited in department donation accounts. The Office of the City Manager will oversee general donations to the City when a specific department is not designated by the donor.

2. Recording cash donations. Donations must be supported in department files by the Donation Receipt signed by the donor which identifies the name of the donor, the amount and date of the donation, and the nature of restrictions on spending, if any.

3. Council Authorization and Notification: A request for authorization for monetary gifts and others valued over $35,000 should come to the Council in the form of a RTC.

4. Procedures for Expending Donated Cash. The donations may be spent from each department’s donation fund when an appropriate purchase is made. Funds shall remain in this account until they are spent for their intended purpose. Donations can be carried over to the new fiscal year, in each department’s donation fund.

4. Donations of equipment and in-kind services or materials or sponsorships. As with cash gifts, donations of equipment and /or in-kind services or materials can be accepted by the City Manager if values are under $35,000. Equipment or in-kind services or materials valued over $35,000 by the donor, must be authorized by the City Council through a RTC.

5. Publicity for Donation Opportunities: Individual departments and the City, in general, may produce and distribute publicity outlining opportunities and procedures for donating money in honor or recognition of a person, organization, or event. They may also distribute information on procedures for making bequests.

Return to RTC# 03-156