(A) Solicitation of gifts.
(1) When a staff member recognizes a need to solicit a donation for goods or services, approval must be obtained from their immediate supervisor and the staff member must contact the respective Department prior to the solicitation if the amount is in excess of $5,000. The Department Head and staff member will review and discuss the solicitation request to avoid multiple requests of the same donor and provide ideas regarding other possible strategies and suggestions on asking for donations which best meet the needs of the town and donor.
(2) Donations should be solicited from businesses located within the town prior to contacting those outside the area.
(B) Donation procedures.
(1) Donors will be provided with a donor application and town’s donation and sponsorship ordinance.
(2) Cash donations cannot be accepted above the amount of $5,000 without prior approval of the Town Manager and/or the Town Board of Commissioners. Cash donation must be received before the purchase or program expenditure is made. However, when advance payment is not possible, the donor may make special arrangements to reimburse the town for a specific item already purchased.
(3) Cash donations will be deposited to the town and distributed to specified Departments. The Director of Finance will ensure such funds are expended as the donor designated and approved.
(C) Receipt of donations.
(1) The town is able to accept donations of land, materials, in-kind services and cash. Donations of land require Board approval and shall be consistent with other town policies. All donors of land, materials and cash shall be issued a receipt incorporating specific information. All in-kind donations (services) shall be acknowledged upon request, unless requested otherwise by the donor.
(2) Town employees accepting donations shall issue receipts via that Department. The receipt shall include information regarding the donation to include cash amount and memo description of purpose.
(D) Receipt guidelines.
(1) All receipts must include:
(a) Verification that no goods or services were provided in exchange, in whole or in part, for the donation.
(b) The cash receipt should reflect the amount of the cash donation.
(c) The land, material and services receipt shall include a clear description of the land, goods or services donated. Do NOT affix a value to the land, materials or services donated. It is incumbent upon the donor to provide the proper justification and fair market value of the donation. The IRS has regulations that determine the value for donated items; i.e., the donor might need to provide an appraisal to the IRS to declare full deduction. In cases of land donations, the Finance Director or designee shall sign the donor’s IRS Form 8283 (Non-cash Charitable Contribution).
(d) Statement indicating donation is tax deductible to the extent allowed by law and it is the responsibility of the donor to determine the fair market value of the contribution.
(e) If donated for a specific purpose, donor should include a statement that the donation will be used for a specific project located on memo section of check. Town staff shall note specific donation on receipt memo line.
(2) The town will retain a copy of all donation receipts. The town will make receipts and other required information available in the event of an IRS audit of a donor’s return.
(3) In cases where a property is jointly owned by the town and other entities, all parties will negotiate and sign a written agreement indicating ownership of the donated asset.
(E) Failure to comply with application and approval process. The town reserves the absolute right to remove, confiscate, and destroy any item placed on public grounds by any individual or group that has not been through the proper application and approval process for donations, sponsorship or memorials.
(Ord. eff. 4-11-2016)