The Strategic Planning Committee voted to support the mayor entering into an agreement with the Community Foundation to receive and manage donations for a proposed downtown recreation area and related philanthropic activities. Committee members asked staff to bring the contract and fee implications to the appropriations process for further review.

Staff said placing donations with the Community Foundation makes it easier to accept one‑time and recurring gifts, provides donors with documentation and may allow tax‑deductible treatment because the foundation is a 501(c)(3). The Community Foundation’s standard administrative fee was cited as 0.75 percent; staff showed example fee totals under hypothetical average balances and pointed to the foundation’s cash‑account interest rates (noted at roughly 3.5–3.95 percent in the foundation’s 2024 reporting) that could offset administrative costs.

Finance and legal staff briefed the committee on alternatives. The City Auditor noted the municipal office can receive and receipt donations, but the auditor’s office cannot guarantee federal tax deductibility for donors because the City is not a 501(c)(3). “We can manage it. We can issue receipts. We can keep it in separate (accounts),” the auditor said, but added the Community Foundation route offers clearer charitable reporting for donors. The Law Director had reviewed the Community Foundation agreement; legal staff raised that the engagement could be treated as a professional services contract and therefore may require a competitive process when fees exceed statutory thresholds.

Committee members expressed two consistent themes: (1) convenience and clearer charitable reporting for donors argue in favor of the Community Foundation option; and (2) staff should explore whether the City can negotiate fee relief or consider other nonprofits to ensure the City protects taxpayers’ interests. Staff said the foundation indicated willingness to discuss fee structure with its board.

A motion supporting the mayor entering the Community Foundation agreement, with the understanding the contract and any needed appropriations would be reviewed by the appropriations committee, passed by voice vote.

Ending: Staff will bring the draft contract and a recommendation to the appropriations committee to resolve procurement, fee and reporting questions before Council authorization.