LoveMB Foundation
A 501(c)(3) Foundation Proposal
for the City of Manhattan Beach
Overview and History
The City of Manhattan Beach has historically had a donation program that was originally created to respond to the desire of Manhattan Beach community members to improve and support their parks, facilities, and open spaces. That program generated funds primarily to support the planting of new trees and the addition of park benches.
Discussions with City Council in May 2020 and January 2021 regarding the program led to putting the existing donation program on hold and to the 2022 initiation of a non-profit 501(c)(3) donation program for the City.
Larger donations to the City to date have been made through other specific private 501(c)(3) corporations established for projects on an individualized basis, such as the recently installed Catalina Classic sculpture and the upcoming renovation of the MB Community Center.
At this time, no general City-affiliated public/private partnership 501(c)(3) vehicle exists for community members, business enterprises, or other interested parties to easily donate to improvement opportunities on a tax-deductible basis for the benefit of the City and its community.
Mission Statement
LoveMB is a 501(c)(3) non-profit corporation established to receive tax-exempt donations from individuals, business enterprises and other interested parties in order to promote, enhance and preserve activities, programs, facilities, parks, and open spaces for the enjoyment, appreciation, and improved quality of life of Manhattan Beach community members.
Specific objectives of LoveMB will be:
1. To educate and promote the benefits of the wide variety of City activities, programs, parks, and open spaces to the community and its residents.
2. To collaborate as a public/private partnership with the City on those projects deemed worthy of fundraising. These projects may include renovations, restorations, new construction, services, programming or activities within the City.
3. To develop partnerships with individuals, regional/local organizations and enterprises interested in collaborating in service and support of the Manhattan Beach community and the Foundation.
4. To pursue new sources of funding, which may include grants and memberships.
5. To market awareness of the Foundation’s existence as a tax-deductible, simple means by which community members can donate to support projects within Manhattan Beach.
Donation Opportunities
1. Tribute items requiring donations of less than $25,000. Examples may include park benches, trees, pavers and tiles.
2. Capital improvement projects over $25,000. Examples may include projects such as a renovated Begg aquatics center, a renovated Joslyn Center, community gardens, youth programs, or renovated park play structures.
3. Annual Gifts—donations may be made on an unrestricted funds basis to be contributed annually for ongoing Foundation/City approved purposes.
Governance and Board of Directors
A Board of Directors will be established to lead and manage the operations of the Foundation.
1. The Board will consist of four (4) Officers: a Chairperson, Vice-Chair, Secretary and Treasurer.
2. The authorized number of Board members will be no less than nine (9) and may be as many as thirteen (13), and will include:
a. City representation (Administrative staff members and/or City Council Members)
b. MBUSD representation (Administrative staff and/or Trustees) c. Parks and Rec Department Director
d. Public Works representative
e. Parks and Rec Commission representative
f. Arts Commission representative
g. Older Adult representative from the community
3. Each member will serve a three (3) year term and not more than two (2) consecutive terms.
Specific Board responsibilities will be to:
● Conduct and manage all business of the Foundation, and to make such rules and regulations that are not inconsistent with law, or with the Articles of Incorporation or the Bylaws.
● Solicit, accept and receive monetary or non-monetary donations, subject to specified guidelines, on behalf of The Foundation and its sponsored projects.
● Work collaboratively with the City, City Council, City departments, and MBUSD, where applicable, and ensure thorough review of proposed projects and distribution of funding raised for those projects, subject to a mutually agreed upon schedule.
● Represent the Foundation in all activities necessary and appropriate in support of the primary purposes of LoveMB.
Administration and Finance
LoveMB will establish its own accounts and operating budget for the Foundation’s operations in support of its approved projects, activities, and programs.
1. The Foundation will have an Executive Director to administer all affairs of the Foundation on a daily basis.
2. The Foundation will hire an independent bookkeeper to record and track all donations, investments, and operating expenses, including both restricted and unrestricted funds.
3. The Foundation will keep accurate books and records of all accounts, along with minutes of all Board meetings, which shall be available to the public.
4. Any member of the Board of Directors, the Manhattan Beach City Council, or the City of Manhattan Beach shall have the right at any reasonable time to review all books, records, documents and property of the Foundation.
5. Revenue sources may include directed donations for specific projects, unrestricted general donations to the Foundation, grant awards, endowment and trust gifts, donations-in-kind such as real property, and other potential revenue streams, such as memberships.
6. LoveMB may also serve as a fiscal sponsor for community organizations or for programs of the City that are aligned with the mission of The Foundation.
7. The Foundation will provide an annual report to the City that will include:
● The status of activities, programming and staffing of the Foundation. ● The assets and liabilities including donations, investments, real property, trust, grant and endowment funds of the Foundation.
● The donation and other revenues of the Foundation, both unrestricted and restricted, detailed by project where appropriate.
● The expenses and disbursements of the Foundation, for both general and restricted purposes.
● The report required shall be accompanied by an audit report of independent certified public accountants, if required by law.
8. The fundraising work of LoveMB will directly accrue to the benefit of the City and the residents of Manhattan Beach. Therefore, as the primary beneficiary, the City agrees to participate with start-up funds in support of the establishment of the partnership.
Communication Plans
1. A domain name of LoveMB will be verified and secured for the Foundation’s website.
2. The website will serve as a communication vehicle for the community-at-large and will provide an ongoing project list and associated timeline as agreed to and supported by both LoveMB and the City Council.
3. As the intended beneficiary of the Foundation’s fundraising, the City will provide marketing support in the form of a link from the City’s website, its Parks and Rec website, and its Older Adult website to the Foundation
website. The City will also support fundraising for specific Foundation/City- approved projects with appropriate marketing materials.
4. The Board of Directors will provide periodic project updates and future plans to City Council.
Bylaws and MOU Documentation and Development
1. The Bylaws have been drafted and require additional review by legal counsel.
2. A draft MOU has been created which requires collaboration and discussion with the City and its legal counsel.
Website links for review
1. Attached is a summary list of long-standing, municipal 501(c)(3) organizations that were evaluated by the committee in the research, development, and support of the establishment of LoveMB.
2. This list denotes a variety of best practices relevant to the work of this committee. They are highlighted in the “Look At” section under each city’s foundation link. The examples range from large cities to small, rural to urban, and vary as to the breadth of fundraising activities in which they engage.
The ‘Ask’:
1. This Foundation is seeking guidance from City Council to designate someone to work with and help refine the organizational Bylaws and MOU.
2. City Council will also provide direction as to what representation it would like, voting or non-voting, on the Foundation Board.
3. City Council will provide guidance and direction regarding other City departments proposed for representation on the Foundation Board.
4. Given that all of the fundraising work of LoveMB will directly benefit the City and its residents, the Foundation is requesting modest start-up funds in support of the establishment of this non-profit 501(C) 3 corporation.