CITY OF SALINAS
Policy Statement No:
Adopted: TBD
Category: Administrative
Revised:
Subject: Community Sponsorship Policy
Distribution: All Departments
I. OVERVIEW
City Council recognizes the importance of providing support for community programs that are held for the general economic benefit of the City’s business community; support of nonprofit organizations serving Salinas residents; cultural, athletic, and educational enrichment; and/or promotion of the City of Salinas.
In order to expand access to a wide range of cultural experiences and community connections for all its residents, the City of Salinas provides limited assistance, when the budget allows, through in-kind and cash sponsorships to local organizations in support of community programs that serve a public purpose. The intent is that the general public will receive some intrinsic cultural, educational, or entertainment value from the program, event, or organization.
II. PURPOSE
The purpose of this policy is to establish a standardized process for sponsorship awards to qualifying non-profit community organizations, youth athletic groups/organizations, educational groups, or individuals, that provide a public benefit for the City’s residents.
III. DEFINITIONS
Community Sponsorship Fund – Funds set aside by City Council each year to offset the costs of providing city support for community programs.
Organization – Includes for-profit or not-for-profit agencies and corporations registered to do business in the State of California; educational institutions; government agencies.
Program – A celebration, event, fundraiser, athletic, cultural, or educational activity that demonstrates a public benefit and/or community programs held for the primary purpose of raising funds for a nonprofit organization and for which other intrinsic cultural, athletic, entertainment or educational value is provided for the benefit of the public.
Sponsorship – Cash or in-kind donation which may be used to offset the costs of program operations or support provided by the City for City services in the form of labor, equipment, rental costs, and other fees that would otherwise be due to the City.
IV. POLICY
The budget for the community sponsorship program, including determination of the source of funding to offset this sponsorship program, shall be established by City Council each year during the annual budget process. Fiscal year shall begin July 1 of each year and end on June 30 the following year. (i.e., July 1, 2024 and ends June 30, 2025).
Cash and in-kind sponsorships for eligible organizations and programs will be considered upon filing a sponsorship application with the City Manager’s Office. Organizations are limited to one cash sponsorship per fiscal year. Sponsorships will only be provided for services, programs, and organizations meeting the eligibility criteria stated in this policy. The City Manager’s Office shall be responsible for accounting for the community sponsorship fund; keep a listing of all organizations and programs receiving sponsorships through this program; and maintain a balance of funds available. The total amount of sponsorships awarded each fiscal year shall not exceed the established budget.
Special Event requirements and other requirements must be followed according to City policies, codes, and ordinances. Failure to comply with the City permitting requirements will result in the organization being ineligible for future sponsorships.
Organizations requesting and receiving sponsorships must submit pre and post program financial affidavits. The pre-program affidavit must accompany the sponsorship application. The post program affidavit is due to the City within 30 days after the program. Organizations who fail to submit the post-program affidavit will not be eligible for future sponsorships.
V. FUNDING LIMITS
The City Council shall determine the Community Sponsorship Fund level during the budget process each year. Sponsorship funding will be determined during the application period. The City, in collaboration with City Council, reserves the right to sponsor programs or opt to not fund any or all sponsorship requests. There also will be limits (a cap), on any one submittal, recognizing that the organizational effort has other funding sources.
In the case of partial funding for a program, costs owed to the City, other than those covered by a sponsorship per this policy, shall be borne by the sponsoring community organization and are due and payable before the program begins or within 30 days of the conclusion of the program determined by the City Manager.
VI. APPLICATION REQUIREMENTS
Each applicant will be required to submit:
A community sponsorship application on a form approved by the City Manager, indicating the program dates, times and location, the local office/headquarters of the organization, the organization’s purpose/mission, the purpose of the program, expected number of participants, statement that the program will be open to the general public, and how the organization and proposed program will benefit residents of Salinas.
A financial affidavit showing the proposed profit or loss for the program on a form approved by the City Manager. The financial affidavit must include income from all sources; and all program expenditures listed by category including but not limited to booth rentals, sound and production, facility rental, food and beverage, concessions, staff, advertising, etc. In-kind contributions and volunteer services shall be listed. The budget will be used to determine the extent to which an organization has obtained diversified funding, in-kind contributions, and volunteer resources. Financial affidavits that show a deficit must clearly explain how the deficit will be handled.
Current proof of 501(c)(3), California contribution registration number and/or other non-profit status must be provided (if applicable determined by the City).
A copy of the program’s sponsorship criteria/guidelines that outlines the program’s sponsorship categories and benefits of sponsorships. Incomplete applications will be returned to the applicant and will not be processed.
The City may request additional information as necessary, including requesting other funding sources for the submitting entity.
VII. APPLICATION REVIEW PROCESS
Sponsorship applications will be processed based on the timeline provided by the City Manager.
Sponsorship applications shall first be reviewed for eligibility and financial impact by the City Manager and Sponsorship Committee.
The City Manager shall make a recommendation for award to City Council.
The City Manager will advise the sponsorship applicant when request goes to City Council for approval.
The sponsorship applicant must be present at the Council meeting to answer questions.
City Council will review and provide final approval.
VIII. ELIGIBILITY CRITERIA
The City will not award sponsorships to any religion, church, creed, or sectarian organization to promote religious purposes. Religious organizations are not excluded from sponsorships however, the purpose of the program must be as described in the definitions section of this policy and shall not serve to promote a religious message as the primary purpose.
Political organizations and/or individual campaigns are not eligible for sponsorships for programs they conduct.
Organizations that discriminate on the basis of age, race, sex, sexual orientation, marital status, disability, or national origin are not eligible for sponsorships for programs they conduct.
Individuals are eligible for sponsorships.
For-profit organizations holding fundraiser programs must identify a 501(c)(3), California not-for-profit corporation, or similar non-profit status under the California Law as a recipient of the program proceeds and provide acknowledgement of receipt of said proceeds from that non-profit organization with the post-program financial affidavit.
For-profit organizations are not eligible for sponsorships for promotional programs for which the organization/corporation or its employees or officers will gain personal benefit (i.e. a sales promotion).
All programs must provide a benefit to Salinas.
Programs must be open to the public and the sponsoring organization must also agree to do the following (failure to do so will result in future ineligibility):
Obtain all required permits, clearances, insurances, and program authorizations in compliance with the Code of the City of Salinas, policies, and Special Events Policy requirements.
Acknowledge the support of the City of Salinas where appropriate, and to include on all printed information and advertising related to the event for which sponsorship was provided the following statement: “This program/event is sponsored in part by the City of Salinas” or other statement approved by the City of Salinas.
Allow the City of Salinas to have a sponsor booth at the program/event if the City so desires (at programs/events where a sponsorship booth is appropriate) for the purposes of distributing information regarding City services and community programs. The booth shall be provided at no cost to the City.
IX. PROCEDURE
City Council approves an annual budget item for City sponsorship/grants, to be administered by the City Manager’s Office.
Applicants submit timely and complete sponsorship/grant applications to the City Manager’s Office for review.
City Manager’s Office reviews application using a sponsorship/grant scoring rubric after compliance with eligibility criteria and availability of funds has been determined. City Manager may seek additional information from applicant as necessary.
If an application is approved by the City Manager’s Office, then the approved application marked accordingly shall be transmitted to the applicant with additional instructions, if any.
If an application is not approved by the City Manager’s Office, the City Manager shall notify the applicant in writing. Decisions made by the City Manager cannot be appealed.
If the applicant has received a sponsorship/grant for an event/activity, then applicant shall submit proof that the sponsorship/grant funds have been spent in the manner and for the purposes stated on the application within thirty (30) days after the event/activity.
Applicants that have received a sponsorship/grant, regardless of type of activity, shall maintain sufficient books and records in accordance with generally accepted accounting principles (GAAP). The City shall have the right to audit the books and records of the applicant for up to four (4) years from the date of disbursement of sponsorship/grant funds for the purpose of verifying any and all reimbursement requests made by the applicant.
If an applicant makes a sponsorship/grant request directly to a member of the City Council, whether individually or as a group, the Council shall refer the applicant to the City Manager’s Office for application and review in accordance with this policy.
Staff shall report any distributions of grants/sponsorship in accordance with applicable tax law.
DRAFT