DATE: October 21, 2026
TO: Honorable Mayor and City Council Members
FROM: Planning and Development Department
2026-095
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
APPROVE THE ESTABLISHMENT OF THE NON-PROFIT “CORONA COMMUNITY FOUNDATION” FOR FUNDRAISING PURPOSES
EXECUTIVE SUMMARY:
This staff report asks the City Council to approve the Articles of Incorporation and Bylaws for the “Corona Community Foundation” The Corona Community Foundation will have 501(c)(3) status, which will enhance the City’s ability to solicit, accept, and manage donations for a wide variety of community purposes.
RECOMMENDED ACTION:
That the City Council:
a. Approve the attached Articles of Incorporation and Bylaws and to be used for the creation of the Corona Community Foundation.
b. Authorize the City Manager, or his designee, to work with outside legal counsel to have the Articles of Incorporation filed with the Secretary of State, have the required paperwork filed with the federal and state governments to obtain the necessary tax exempt status, and take any other steps reasonably necessary for the proper formation of the Corona Community Foundation. c. Authorize the City Manager, or his designee, to plan for the first meeting of the Board of Directors of the Corona Community Foundation.
BACKGROUND & HISTORY:
The City of Corona (City) has a longstanding tradition of civic engagement and community partnership, which has shaped its approach to public service and resource development.
Over the years, the City has worked closely with local non-profit organizations, community groups, and residents to address evolving community needs and enhance the quality of life for all citizens. This collaborative spirit is reflected in the City’s support for initiatives that leverage both public and private resources to deliver services and amenities, not otherwise provided through municipal operations.
Historically, the City has facilitated community benefit through a variety of mechanisms, including the acceptance of donations, sponsorships, and grants from individuals, businesses, and philanthropic organizations. These contributions have supported a wide range of programs, from library outreach and senior services, to public events and facility improvements.
ANALYSIS:
In order to reinforce civic engagement and community partnerships, staff are recommending the formation of a 501(c)(3) foundation to enhance the City’s ability to solicit, accept, and manage donations for a wide variety of purposes. This will offer donors increased confidence in the tax deductibility of their donations, while also providing for more transparent and centralized management and expenditure of raised funds.
The establishment of the 501(c)(3) organization will provide a robust legal and operational structure to support the City’s mission, enhance public trust, and ensure that all contributions are used effectively for the benefit of Corona’s residents.
Articles of Incorporation & Bylaws
As proposed, the Corona Community Foundation (also referenced as the Corporation or Foundation) Articles of Incorporation and Bylaws provide for, among other things, the following:
Articles of Incorporation
Purposes. The Corporation is a nonprofit public benefit organization and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law exclusively for charitable purposes. The specific charitable purposes of the Corporation are to: (1) support all facilities, assets, amenities, programs, and activities owned, operated, provided, or otherwise supported by the City for the benefit of its residents, including, but not limited to, the City’s parks, open spaces, trails, aquatic centers, community centers, senior centers, libraries, public art, fire stations, and police stations; (2) to engage in any other activities in furtherance of the purposes for which the Corporation is formed; and (3) to receive, invest, and utilize funds, property, and in-kind materials or services acquired through the solicitation of contributions, donations, grants, gifts, bequests, and the like for the purposes for which the Corporation is formed. Limitation of Corporate Activities. The Corporation is organized and operated exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code.
Dissolution. If the Corporation is ever dissolved, any remaining assets shall be distributed to the City and used exclusively for the purposes for which the Corporation was established.
Bylaws
Objectives. The Foundation would be allowed to raise funds in support of all facilities, assets, amenities, programs, and activities owned, operated, provided, or otherwise supported by the City of Corona. These include, but are not limited to, the City’s parks, open spaces, trails, aquatic centers, community centers, senior centers, libraries, public art, fire stations, and police stations. Transparency Laws. The Foundation will be subject to the Brown Act, Public Records Act, and Political Reform Act.
Board of Directors. The Foundation Board of Directors (Directors) will be the five people who are the seated City Council Members, at any given time. No Compensation. The Directors shall receive no compensation for their service on the Board.
Open Board Meetings. All meetings of the Board shall be open and public in accordance with the Brown Act. Any member of the public shall be permitted to attend any meeting of the Board, except as otherwise provided in the Brown Act. All meetings of the Board shall be held at the Civic Center or at such other place within the City of Corona as may be designated in the notice of said meeting. Agendas. Agendas shall be prepared for all meetings of the Board of Directors in accordance with the Brown Act.
Officers. The Foundation officers shall be a Chair, a Vice Chair, a Secretary, and a Treasurer. Two or more offices may be held by the same person, except that neither the Secretary nor the Treasurer may serve concurrently as the Chair. While the Secretary and Treasurer need not be, the Chair and Vice Chair must also be Directors.
Committees. Committees may be formed and operate and allowed under the Brown Act.
Next Steps
Following Council authorization, the next steps include the following:
Filing Articles of Incorporation (Date of Incorporation). Staff, or designated outside legal counsel, will file the Articles of Incorporation filed with the Secretary of State. The Corporation is legally formed when the California Secretary of State accepts the articles for filing.
Federal Tax Exempt Determination. Staff, or designated outside legal counsel, will submit documentation to the federal government for its federal tax exempt status. Since this filing will be done within 27 months of incorporating, the IRS will automatically grant tax-exempt status retroactive to the date of incorporation. The IRS issues most determinations within 6 months.
State Tax Exempt Determination. Once the IRS determination is received, staff, or designated outside legal counsel, will file the necessary documentation with the Franchise Tax Board to obtain state tax-exemption.
First Board Meeting. The City does not need to wait to have the first meeting of the Board until the 501(c)(3) determination happens. At the first meeting, the Foundation’s Board of Directors will at least: (1) adopt the bylaws; (2) select officers; and (3) approve a conflict of interest policy.
The estimated time frame to complete all of these steps and receive the determinations from the regulatory agencies is approximately six months.
FINANCIAL IMPACT:
Funding for the recommended actions is available in the Planning & Development’s operating budget within the General Fund (FD_1110). The minor costs necessary for the creation and filing of the formation documents will be covered within the existing budget.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common-sense exemption that CEQA applies only to projects that have the potential for causing significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is to simply approve, adopt, and file the necessary paperwork for the formation of the Corona Community Foundation. Therefore, no environmental analysis is required.
PREPARED BY: JOEL BELDING, PLANNING & DEVELOPMENT DIRECTOR REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – Articles of Incorporation of the Corona Community Foundation
2. Exhibit 2 – Bylaws of the Corona Community Foundation