DONATION ACCEPTANCE POLICY
1. Purpose
The purpose of this Donation Acceptance Policy (“Policy”) is to establish guidelines for the acceptance, administration, and use of donations made to the City of Richmond to ensure that all contributions:
A. Serve a legitimate public purpose;
B. Align with the City’s mission, values, and legal obligations; and C. Do not create conflicts of interest, undue influence, or liability.
2. Definitions
Donation means a contribution made to the City without expectation of goods, services, or benefit in return. Donations may be offered in the form of monetary contributions or contributions of real or personal property. A donation may be undesignated, where the donor has placed no limitation on its use, or designated, where the donor has designated its use to a specific purpose. For purposes of this policy, a grant is not a donation.
Donor means any individual, organization, foundation, corporation, or other entity that makes a donation to the City.
Grant means funds or other resources provided to the City by a governmental agency, foundation, corporation, or other entity pursuant to an application, award, or agreement that imposes specific conditions, restrictions, performance obligations, reporting requirements, or compliance obligations on the City. Grants must be managed in accordance with the City’s Grants Management Policy.
In-Kind Donation means a non-monetary contribution of goods, materials, equipment, real property, or services provided to the City.
Monetary Donation means a contribution of cash, check, electronic funds, securities, or other financial assets.
3. Acceptance of Donations – Requirements
A. General Requirements
All donations, whether monetary or in-kind, must comply with the following requirements:
i. Donations must be directly related to providing City programs, services, infrastructure, or other benefits to the public. Donations shall not be used for any personal financial gain of any City elected or appointed official or any City employee. ii. The City’s acceptance of a donation must be consistent with applicable federal, state, and local laws;
iii. The City’s acceptance of a donation must not compromise the City’s integrity, independence, or decision-making;
iv. Donations must not impose unreasonable costs or liabilities on the City; v. Donations must not be conditioned on the award of contracts, regulatory approvals, or other discretionary decisions;
vi. Donations must not create a conflict of interest or the appearance of impropriety.
B. In-Kind Donations – Additional Requirements
i. In-Kind Donations of Goods and Services
The City shall consider potential costs and liabilities if a donation of personal property or a service does not include the same indemnification, insurance, bonding, or warranties that the City would normally receive through the City’s general procurement process. ii. In-Kind Donations of Real Property
Donations of real property require environmental review, where applicable, and title review and due diligence. Before accepting donations of real property, the City must consider whether the donation imposes disproportionate risk of liability or additional expenses, including but not limited to the physical condition of the property, environmental hazards, title or marketability issues, or existence of claims, liens, or encumbrances against the property.
4. Conditions and Restrictions
A. The City may accept donations with reasonable restrictions that align with the City’s goals and objectives and are in the best interest of the City.
B. The City retains discretion to decline or modify donor-imposed conditions.
C. Naming rights or recognition must be separately approved and comply with City policies.
D. Donations shall be used solely for the purposes for which they are accepted.
E. Departments receiving donations are responsible for compliance with any applicable conditions.
5. Ethical Considerations and Conflicts of Interest
A. City officials and employees must comply with all applicable conflict-of-interest laws, including the Political Reform Act of 1974.
B. Acceptance of a donation does not create endorsement of the donor.
C. No City officer or employee shall participate in decisions related to a donation in which they have a financial interest, as defined by applicable law.
D. Donations from parties with pending or foreseeable matters before the City shall be subject to heightened review to avoid actual or perceived undue influence.
6. Procedures
A. Review and Approval Authority
The City Manager (or designee) may accept monetary and in-kind donations having a value of $10,000 or less. City Council approval is required for monetary and in-kind donations having a value of more than $10,000. The City Manager may choose to request City Council approval of any donation.
B. Donation Acceptance Form
i. A Donation Acceptance Form shall be completed for every donation, regardless of value or type. The Donation Acceptance Form is attached hereto as Exhibit A. ii. The form shall include, at a minimum:
a. Donor information;
b. Description and value of the donation;
c. Purpose of the donation (if a designated donation);
d. Any conditions or restrictions; and
e. The receiving department.
iii. The form must be reviewed and signed in the following order:
a. Director of Finance (or designee); and
b. City Manager (or designee) or Mayor if City Council approval is required. iv. A fully executed copy of the Donation Acceptance Form shall be submitted to the Finance Department for recordkeeping.
C. Donation Acceptance Agreement
i. For all donations valued at more than $10,000 that require City Council approval, the donation shall be formalized through a written Donation Acceptance Agreement. The City Manager or City Council may require a donation acceptance agreement for a donation valued at any amount. The Standard Donation Acceptance Agreement is attached hereto as Exhibit B.
ii. The donation acceptance agreement shall be executed by:
a. The donor; and
b. The City Manager (or designee) or Mayor if City Council approval is required. iii. The donation acceptance agreement shall, at a minimum, document the nature, value, purpose, and any conditions or restrictions associated with the donation. iv. The executed agreement shall be maintained by the Finance Department as part of the City’s official records.
D. Donation Receipts
i. For all donations with a value of $100 or greater, or upon request of the donor, the City shall issue a written donation receipt within 30 days of receiving the donation. A form donation receipt is attached hereto as Exhibit C.
ii. The donation receipt shall include, at a minimum:
a. The date of the donation;
b. The name of the donor;
c. The amount or description and value of the donation; d. The purpose of the donation (if a designated donation); and e. A statement that the donor received no goods or services in exchange for the donation.
iii. The Finance Department shall issue an original receipt to the donor and retain a copy for recordkeeping.
7. Accounting and Recordkeeping
A. The Finance Department shall establish and maintain official records of all donations, including monetary and in-kind contributions.
B. All donations shall be recorded in accordance with applicable governmental accounting standards and City financial policies.
C. Monetary donations shall be deposited promptly into appropriate City funds and accounts.
D. In-kind donations shall be assigned a reasonable fair market value and recorded where required.
E. The Finance Department shall retain copies of donation acceptance forms, donation acceptance agreements, donation receipts, and supporting documentation, in accordance with the City’s records retention schedule and applicable law.
F. Records related to donations are public records and shall be disclosed in accordance with the California Public Records Act unless an exemption applies.
8. Acknowledgment and Recognition
A. The City may acknowledge donors in a manner consistent with City policies.
B. Recognition must not imply endorsement or preferential treatment.
C. Anonymous donations may be accepted where appropriate.
9. Reservation of Rights
The City reserves the right to:
A. Decline any donation for any reason;
B. Return a donation if it later becomes inconsistent with this Policy or any other City policy; and
C. Amend this Policy at any time.
10. Effective Date
This Policy shall become effective upon adoption by resolution of City Council.