HomeMy WebLinkAbout6.m. Donation Policy Update
EXECUTIVE SUMMARY
City Council Regular Meeting: January 31, 2022
AGENDA ITEM: Donation Policy Update AGENDA SECTION:
Consent
PREPARED BY: Teah Malecha, Finance Director AGENDA NO. 6.m.
ATTACHMENTS: Draft Donation Policy APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve amended Donation Policy
BACKGROUND
The City’s current Donation Policy was last amended on November 20, 2001. The policy establishes the
guidelines for accepting donations that the City receives from various individuals, businesses, and
organizations. Each donation must meet the following criteria:
a. The donation must have a purpose consistent with those of the City.
b. The donation must be offered by a source acceptable to the City.
c. All designated donations of funds shall be utilized in accordance with the accompanying
designation.
d. The donation shall not result in ongoing costs that the City Council would be unwilling to fund
when the donations are exhausted, unless specific prior authorization to the contrary is given by
the City Council at the time the donation is accepted. If prior authorization is not given, sufficient
donations to meet all anticipated staff and material costs must be in hand before City commitment
is made to personnel and/or materials.
e. The donation shall not bring undesirable or hidden costs to the City.
f. The donation shall not be inappropriate or harmful to the residents of the City.
g. The acceptance of a donation shall not imply City endorsement of any product or service nor shall
it implicitly or explicitly obligate the City to act in any way favorable to the donor.
h. The donation cannot be used for religious or sectarian purposes.
i. The donation shall not be in conflict with any provision of federal, state or municipal law.
The City Council must accept each donation and donor’s terms by resolution or decline the donation and
direct it to be returned. Acceptance of each donation by resolution ensures that the City recognizes the
donor and the receipt of the gift. Each donation received is appreciated as it may improve the efficiency
and effectiveness of City services and enhance the quality of life for residents.
The Procedures – Expenditures section and Donation Revenue Worksheet have been removed from the
policy. The donations that are received are placed is designated donation accounts and are tracked by the
receiving department to ensure that the donor’s terms and policy are followed. Therefore, a formal
Council action to expend the funds is an unnecessary step.
RECOMMENDATION
Staff recommends approval of the amended Donation Policy.
CITY OF ROSEMOUNT
POLICY TITLE: DONATION POLICY
EFFECTIVE DATE: NOVEMBER 19, 1991
PROPOSED BY: FINANCE
DATE APPROVED
BY COUNCIL: NOVEMBER 19, 1991
(AMENDED NOVEMBER 20, 2001)
(AMENDED JANUARY 31, 2022)
PURPOSE
The City of Rosemount appreciates donations as they help to enhance the quality of life
in the City and to improve the efficiency and effectiveness of City services. Donations
may be in-kind gifts, that is, The City may accept a grant or gifts of real or personal
property, including money. (not cash) or cash donations. Each year, residents, civic
organizations, private businesses, etc., make donations to the City. Donations are
sometimes given for a specific purpose (i.e.: park equipment, fire equipment, police
equipment, D.A.R.E.) and sometimes the funds are given without stipulation. The
purpose of this policy is to set up procedures and criteria for donations. for receipt of
donations to the City and for the expenditure of these donations.
PROCEDURES – RECEIPT
a. All potential donors are urged to consult with the City Administrator or his/her
designee(s) before proceeding with plans to ensure maximum utilization of in-kind
gifts and cash any donations.
b. No employee, volunteer or elected or appointed official of the City may solicit
donations without first receiving permission from the City Administrator, acting under
the authorization of the City Council. Departments may receive a single
authorization to solicit donations for the entire year for a specific program or
programs. Major changes in funding of these programs and new programs must
receive specific authorization from the City Administrator. This policy applies to all
departments.
c. All departments that receive donations must report the receipt of the donation to the
City Council. At the time the donation is received, staff is encouraged to have the
donating individual or organization designate a specific purpose, activity, equipment
purchase, etc. for the donation. If a designation is chosen, written documentation of
the designation should accompany the donation. The documentation should be in
the form of a memorandum or letter, on the individual’s or organization’s letterhead if
at all possible. If the donation does not have a specific designation other than to a
specific department it will be received into the designated department’s donation
account. Each department that receives donations will have a special donation
account(s) to receive and maintain donations. Each department will be responsible
for the record keeping of its account(s).
d. The City Council shall make the final determination on the acceptability of an in-kind
gift or cash donations at the Council meeting following the receipt of the donation. A
gift of real or personal property must be accepted by the City Council by A resolution
accepting the donation and donor’s terms and must be approved by a two-thirds
majority of the City Council. A cash donation must be acknowledged and accepted
by motion with a simple majority. If the Council were to decline an in-kind gift or cash
donation, the Council would direct staff to return theat in-kind gift or cash donation to
the individual or organization as soon as possible.
e. After acceptance by the City Council, donated funds that are not designated to a
specific purpose or department shall be placed in a generic donation revenue
account that becomes miscellaneous revenue of the City in that specific year.
f. All donations become City property under the complete jurisdiction of the City
Council and any unused balance of designated funds from a program that has been
completed, cancelled, etc., shall become part of the donation account of the
receiving department.
g. Recognition shall be given to the individuals or groups providing donations to the
City, unless otherwise stipulated by the donor.
h. The donation must meet City criteria in order to be accepted. (See following)
CRITERIA
a. The donation must have a purpose consistent with those of the City.
b. The donation must be offered by a source acceptable to the City.
c. All designated donations of funds shall be utilized in accordance with the
accompanying designation.
d. The donation shall not result in ongoing costs that the City Council would be
unwilling to fund when the donations are exhausted, unless specific prior
authorization to the contrary is given by the City Council at the time the donation is
accepted. If prior authorization is not given, sufficient donations to meet all
anticipated staff and material costs must be in hand before City commitment is
made to personnel and/or materials.
e. The donation shall not bring undesirable or hidden costs to the City.
f. The donation shall not be inappropriate or harmful to the residents of the City.
g. The acceptance of a donation shall not imply City endorsement of any product or
service nor shall it implicitly or explicitly obligate the City to act in any way favorable
to the donor.
g.h. The donation cannot be used for religious or sectarian purposes.
h.i. The donation shall not be in conflict with any provision of federal, state or municipal
law.
PROCEDURES – EXPENDITURE
a. When donations are received, a special donation account will receive the funds and
the applicable department will be responsible for the future expenditures from that
account.
b. After the expenditure is made, staff will bring to the Council a form (attached) that
will amend the revenue and expenditure budgets by the amount of the donation
received. Because amending the budget must be done by resolution, the form that
the Council approves allows for timely handling of donations while the actual
resolution approving all of the budget amendments will be done on a quarterly basis.
DONATION REVENUE WORKSHEET
RECEIPT OF DONATION
Donation Received On: ___________________________________________________
Amount Received: $_____________________________________________________
Purpose of Donation: ____________________________________________________
Account # for Donation: __________________________________________________
(Must be Liability # Assigned for Each Individual Department)
EXPENDITURE OF DONATION
Amount to be Spent: $____________________________________________________
To be Spent from Account #:_______________________________________________
(Must be Expenditure # Corresponding to Individual Department)
Purpose of Expenditure: __________________________________________________
AMENDMENT OF BUDGETS
Amend Donation Revenue Account #101-36230.00: $________________________
Amend Expenditure Account #____________________:$________________________
(The Two Dollar Amounts Must be the Same)
GENERAL JOURNAL ENTRY TO ADJUST DONATION LIABILITY #
Debit: ____________________ (Donation Liability #) $________________________
Credit: 101-36230.00 $________________________
Journal entry to reduce deferred donation revenue account and increase donation
revenue account to actual per City Council action on: ___________________________.