HomeMy WebLinkAboutCouncil Policy No. 300-05 - Donations
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Donations Policy No. 300-5
Effective Date 12/8/87
Revised: 9/12/06
Page No. 1 of 3
BACKGROUND
From time to time, private individuals and organizations make donations to the City for
general or specific purposes.
PURPOSE
The purpose of this Policy is to establish the conditions and procedures to be followed by
the City in accepting donations.
POLICY
Definitions
“Donation” – A contribution to the City which may consist of a cash grant, real property
(land) or an in-kind contribution (any item or object other than cash or real property
which would serve a useful purpose in the provision of City services) or a work of art.
“Unrestricted Donation” – a Donation to the City without any limitations being placed
upon its use.
“Restricted Donation” – a Donation to the City for a specified purpose.
General
All Donations are subject to the provisions of this Policy and shall become City property
upon (i) formal acceptance by the City Council or the City Manager, and (ii) execution
(and recording, if applicable) of any documents required by the City Attorney to be
executed documenting the conveyance of legal title to the City. Any conditions the City
or the donor places upon the donation shall be stated in writing executed concurrently
with the legal conveyance of title. Such Donations shall be accounted for by the City in
accordance with all applicable accounting rules and the City and its personnel shall
comply with all applicable state, federal or local laws applicable to such donations,
including without limitation, the Internal Revenue Code of 1986, as amended, and all
rules and regulations promulgated in accordance therewith.
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Donations Policy No. 300-5
Page No. 2 of 3
Real Property
Real Property donations shall be reviewed and a legal opinion rendered thereto by the
City Attorney before acceptance by the City. For those donations of real property
determined to be in the best interests of the City and otherwise acceptable to the City
Council and the City Attorney, the City Council shall effect acceptance of all real
property donations by adoption of an ordinance.
Unrestricted Personal Property
Unrestricted Personal Property Donations do not require City Council approval for
acceptance. Cash donations are revenue to the General Fund and upon receipt by a City
representative, shall be immediately remitted to the Administrative Services Director for
deposit to the City’s general bank account. In-kind donations may be made directly to
the using department. All donations are to be reported to the Administrative Services
Director, who will be responsible for ensuring that the City Manager and City Council
are informed of the donations, that the donations are acknowledged, that timely reports
are made and that suitable recognition is afforded the donor.
Single Restricted Personal Property
Single Restricted Personal Property donations may be made to the City for stated specific
purposes. Such donations may be restricted for specific City-wide projects. They may
also be restricted to projects on City property which would benefit only limited groups,
such as installation of ball fields, shuffleboard courts or horseshoe pits in a community
park or recreation facility. These donations may be cash or in-kind contributions. The
City Council shall review the conditions of any restrictive donations and determine if the
benefits to be derived warrant the acceptance of the donations. Subsequent to such
review, the City Council shall determine whether or not to accept any restricted donation.
Accepted cash donations shall be immediately remitted to the Administrative Services
Director for deposit to the appropriate City bank account for future expenditure on the
restricted purpose. Unaccepted donations shall be promptly returned to the donor.
Multiple Restricted Donations
Multiple Restricted Donations are cash donations made to the City for a special purpose
or project by more than one individual or agency. The City Council shall be responsible
for determining whether or not to accept all such donations. All accepted multiple
CITY OF LAKE ELSINORE, CALIFORNIA
COUNCIL POLICY MANUAL
SUBJECT: Donations Policy No. 300-5
Page No. 3 of 3
donations restricted to the same purpose or project shall be received upon the following
conditions:
a) Uniform conditions shall apply to all donations for the particular project.
b) A limited time will be established for accepting these donations.
c) The City shall maintain detailed records of amounts received and how
such monies are used and/or disbursed.
Upon acceptance of multiple restricted cash donations by the City Council, the donations
shall be immediately remitted to the Administrative Services Director for deposit to the
appropriate City bank account for future expenditure on the restricted purpose.
Unaccepted donations shall be promptly returned to the donor.
HISTORY
Adopted by Resolution No. 87-75 12/8/87
Revised by Resolution No. 2006-152 9/12/06