City of Culver City, California
Parks, Recreation and Community Services Commission Agenda Item Report
Meeting Date: _06/02/09__ Item Number: _A- 2
AGENDA ITEM: Consideration of a Recommendation to the City Council Regarding
the Development of a 501(c)(3) Foundation as a Resource for Funding City Parks and
Open Space Enhancements.
Contact Person/Dept.: Bill La Pointe,
PRCS Director
Phone Number: (310) 253-6655
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: PRCS Master Notification List (05/28/09).
Department Approval: Bill La Pointe,
PRCS Director (05/26/09)
City Attorney Approval: N/A
Chief Financial Officer Approval: N/A City Manager Approval: N/A
RECOMMENDATION:
Staff recommends that the Parks, Recreation and Community Services Commission
consider a recommendation to the City Council regarding the development of a
501(c)(3) entity (Foundation) as a resource for funding City parks and open space
enhancements.
BACKGROUND/DISCUSSION:
On December 1, 2008, Mayor Scott Malsin received consensus from the City
Council to agendize a discussion on whether or not the City should establish a
501(c)(3) foundation associated with the Parks, Recreation and Community Services
Department similar to the one associated with the Cultural Affairs Department and
the Cultural Affairs Commission. The City Council directed staff to present the
establishment of a foundation to the PRCS Commission for consideration. Mayor
Malsin suggested the foundation be dedicated to the purpose of encouraging
community groups and corporations to donate funds in order to enhance Culver City
parks and open spaces.
The PRCS Commission has, over the years, continued to explore ways of securing
external resources to support the PRCS Department facilities and programs. In May
2006, the PRCS Commission discussed the possibility of establishing a 501(c)(3)
foundation to support park improvement projects and recreational programs. The
Commission took action not to establish a foundation but rather a Commission
subcommittee (now the Financial Resource Development Subcommittee) to explore
funding opportunities. An excerpt of the minutes of the May 2, 2006 meeting is
included as Attachment A.
Donations to the City for public purposes are tax-deductible as outlined in IRS
Publication 526 (2008) which is provided as Attachment B. However, on occasion, City of Culver City, California
Parks, Recreation and Community Services Commission Agenda Item Report
entities or individuals will choose to donate only to a 501(c)(3) organization.
Currently in such instances, the PRCS Department partners with the Culver City
Parks and Service Foundation (CCPSF), an independent 501(c)(3) organization,
which serves in the capacity of fiscal receiver. In essence this partnership allows the
CCPSF, upon approval by their board of directors, to receive donated funds
designated for the purpose of enhancing City parks and open space. The CCPSF
then donates the funds to the City for such use as identified by the donor or the
PRCS Department.
The CCPSF has been used as the City’s fiscal receiver on various occasions, most
recently to receive funds from an individual whose donation supported the
installation of a new piece of playground equipment at Culver West Alexander Park.
Funds donated by the Fox Hills Neighborhood Association to support the purchase
of new barbeque grills and benches for Fox Hills Park, were also received by the
CCPSF.
The PRCS Department has also partnered with other independent 501(c)(3)
organizations for the receipt of charitable contributions such as the Friends of the
Culver City Dog Park and the Culver City Senior Citizens Association.
In contrast to such partnerships, the Culver City Cultural Affairs Commission
established a 501(c)(3) foundation to serve as the tax-exempt entity for the receipt of
charitable contributions for “promoting and supporting the historic preservation,
public art and cultural programming services in Culver City”. These purposes,
outlined in the Cultural Affairs Commission bylaws, are fulfilled through the work of
the Cultural Affairs Commission. The Cultural Affairs Foundation Bylaws and
Articles of Incorporation are included as Attachments C and D.
FISCAL ANALYSIS:
There is no cost associated with the discussion and recommendation of this item to
City Council. However based on the experience of the Cultural Affairs Division, it is
anticipated that there will be costs associated with the development and
establishment of the foundation.
ATTACHMENTS:
A. Excerpt of the May 2, 2006 PRCS Commission Meeting Minutes
B. Excerpt from IRS Publication 526 (2008)
C. Cultural Affairs Foundation Bylaws
D. Cultural Affairs Foundation Articles of Incorporation
City of Culver City, California
Parks, Recreation and Community Services Commission Agenda Item Report
MOTION:
That the Parks, Recreation and Community Services Commission:
1. Recommend that the City Council support the development of a 501(c)(3)
foundation as an additional resource for funding City parks and open space
enhancements; and refer the issue back to staff and the PRCS Commission for
further recommendation.
OR
2. Recommend that the City Council not support the development of a 501(c)(3)
foundation but continue to partner with independent entities to receive charitable
donations on behalf of the City.
OR
3. Provide staff with alternate recommendation(s).
MEETING DATE: June 2, 2009
AGENDA ITEM: Consideration of a Recommendation to the City Council
Regarding the Development of a 501(c)(3) Foundation as
a Resource for Funding City Parks and Open Space
Enhancements.
ATTACHMENTS
Pages
A. Excerpt of the May 2, 2006 PRCS Commission Meeting
Minutes
1 - 2
B. Excerpt from IRS Publication 526 (2008)
3 - 4
C. Cultural Affairs Foundation Bylaws
5 - 13
D. Cultural Affairs Foundation Articles of Incorporation
14 - 18
EXCERPT OF THE MINUTES OF THE
REGULAR MEETING OF THE May 2, 2006
PARKS AND RECREATION COMMISSION 7:00 p.m.
CITY OF CULVER CITY, CALIFORNIA
CHAIR JEANETTE JAMES
Call to Order
The meeting of the Parks and Recreation Commission was called to order by Chair James at 7:10
p.m. in the Council Chambers, City Hall.
0O0
Roll Call
Members Present: Commissioners James, Daly Redholtz, Deen, Shapiro, Cooper
0O0
Item A-1.
Consideration to establish and appoint a Commission subcommittee on the
development of a 501(c)(3) entity to explore funding opportunities to support park
improvement projects and recreational programs.
Bill La Pointe gave the staff report.
Commissioner Daly Redholtz clarified the intent of the subcommittee is not to establish a new
501(c)(3) entity but to support funding opportunities/find ways to go about increasing the PRCS
Department’s ability to raise more money from grants.
MOVED BY COMMISSIONER DALY REDHOLTZ AND SECONDED BY COMMISSIONER
COOPER THAT THE PARKS AND RECREATION COMMISSION APPOINT A
SUBCOMMITTEE TO EXPLORE FUNDING OPPORTUNITIES TO SUPPORT PARK
IMPROVEMENT PROJECTS AND RECREATION PROGRAMS AND TO INCLUDE
DISCUSSIONS WITH THE CULVER CITY PARKS AND SERVICE FOUNDATION IN THIS
EFFORT.
Discussion ensued.
Commissioner Shapiro pointed out that this is not the issue on the agenda.
Heather Iker clarified the agenda item is broad enough to include the action proposed by
Commissioner Daly Redholtz.
Commissioner James said she is in favor of developing a subcommittee and expressed her desire
to serve on the subcommittee.
ATTACHMENT A
1Commissioner Deen said the issue is far too broad for a subcommittee, pointing out that the
Cultural Affairs Commission created a 501(c)(3) after a cultural plan was developed. He said he
would vote against it.
Commissioner Shapiro said she is not in favor of creating a 501(c)(3) because of the cost to staff
time, but indicated she would support a subcommittee to explore funding opportunities and the
subcommittee could bring back information/a report of their findings to the Commission.
AYES: Commissioners James, Daly Redholtz, Cooper, and Shapiro
NOES: Commissioner Deen
ABSTAIN: None
ABSENT: None
The Motion carried by a 4-1 vote.
Commissioner Daly Redholtz emphasized the purpose of the subcommittee is to explore funding
opportunities for the benefit of the City and enhance the quality of the parks for the public.
MOVED BY COMMISSIONER SHAPIRO AND SECONDED BY COMMISSIONER COOPER TO
APPOINT COMMISSIONERS JAMES AND DALY REDHOLTZ TO SERVE ON THE
COMMISSION FUNDRAISING SUBCOMMITTEE TO EXPLORE FUNDING OPPORTUNITIES
FOR PARKS AND RECREATION.
AYES: Commissioner James, Daly Redholtz, Cooper and Shapiro
NOES: Commissioner Deen
ABSTAIN: None
ABSENT: None
The Motion carried by a 4-1 vote.
0O0
2$159,950 ($79,975 if you are married filing sep- Table 1. Examples of Charitable Contributions—A Quick Check
arately), you may have to reduce the amount of
Use the following lists for a quick check of contributions you can or cannot deduct.
certain itemized deductions, including charitable
See the rest of this publication for more information and additional rules and limits
contributions. For more information and a work-
that may apply.
sheet, see the instructions for Schedule A (Form
1040).
Deductible As Not Deductible As
Charitable Contributions Charitable Contributions
Money or property you give to: Money or property you give to:
Reminders
• Churches, synagogues, temples,
• Civic leagues, social and sports
mosques, and other religious
clubs, labor unions, and chambers of
organizations Disaster relief. You can deduct contributions commerce
for flood relief, hurricane relief, or other disaster
relief to a qualified organization (defined under • Federal, state, and local
• Foreign organizations (except certain
governments, if your contribution is Organizations That Qualify To Receive Deducti- Canadian, Israeli, and Mexican
solely for public purposes (for ble Contributions). However, you cannot deduct charities)
example, a gift to reduce the public
contributions earmarked for relief of a particular
debt)
individual or family. • Groups that are run for personal
profit
• Nonprofit schools and hospitals
• Groups whose purpose is to lobby for
• Public parks and recreation facilities
law changes
Introduction
This publication explains how to claim a deduc-
• Salvation Army, Red Cross, CARE,
• Homeowners’ associations
tion for your charitable contributions. It dis-
Goodwill Industries, United Way, Boy
cusses organizations that are qualified to Scouts, Girl Scouts, Boys and Girls
• Individuals
receive deductible charitable contributions, the Clubs of America, etc.
types of contributions you can deduct, how
• Political groups or candidates for
much you can deduct, what records to keep, and • War veterans’ groups
public office
how to report charitable contributions.
A charitable contribution is a donation or gift • Charitable organizations listed in
Cost of raffle, bingo, or lottery tickets
Publication 78 to, or for the use of, a qualified organization. It is
voluntary and is made without getting, or expect-
Dues, fees, or bills paid to country clubs,
Expenses paid for a student living with you,
ing to get, anything of equal value. lodges, fraternal orders, or similar groups
sponsored by a qualified organization
Qualified organizations. Qualified organiza-
Tuition
tions include nonprofit groups that are religious, Out-of-pocket expenses when you serve a
charitable, educational, scientific, or literary in qualified organization as a volunteer
Value of your time or services
purpose, or that work to prevent cruelty to chil-
dren or animals. You will find descriptions of
Value of blood given to a blood bank
these organizations under Organizations That
Qualify To Receive Deductible Contributions.
address below and receive a response within 10 See How To Get Tax Help near the end of
Form 1040 required. To deduct a charitable
days after your request is received. this publication for information about getting
contribution, you must file Form 1040 and item-
these publications and forms.
ize deductions on Schedule A. The amount of
your deduction may be limited if certain rules Internal Revenue Service
and limits explained in this publication apply to 1201 N. Mitsubishi Motorway
you. Bloomington, IL 61705-6613
Comments and suggestions. We welcome
Organizations That
Tax questions. If you have a tax question, your comments about this publication and your
check the information available on www.irs.gov suggestions for future editions.
Qualify To Receive
or call 1-800-829-1040. We cannot answer tax You can write to us at the following address:
questions sent to either of the above addresses.
Deductible
Internal Revenue Service
Useful Items
Contributions
Individual Forms and Publications Branch
You may want to see:
SE:W:CAR:MP:T:I
You can deduct your contributions only if you
1111 Constitution Ave. NW, IR-6526
Publication
make them to a qualified organization. To be-
Washington, DC 20224
come a qualified organization, most organiza-
? 78 Cumulative List of Organizations
tions other than churches and governments, as
We respond to many letters by telephone.
? 561 Determining the Value of Donated
described below, must apply to the IRS. Therefore, it would be helpful if you would in-
Property
clude your daytime phone number, including the
? 4492-B Information for Affected area code, in your correspondence.
Publication 78. You can ask any organization
Taxpayers in the Midwestern You can email us at *taxforms@irs.gov. (The
whether it is a qualified organization, and most
Disaster Areas asterisk must be included in the address.)
will be able to tell you. Or you can check IRS
Please put “Publications Comment” on the sub-
Form (and Instructions) Publication 78, which lists most qualified organi- ject line. Although we cannot respond individu-
ally to each email, we do appreciate your zations. You may find Publication 78 in your
? Schedule A (Form 1040) Itemized
feedback and will consider your comments as
local library’s reference section. Or you can find
Deductions
we revise our tax products.
it on the Internet at http://www.irs.gov/app/
? 8283 Noncash Charitable Contributions
pub-78. You can also call the IRS to find out if an
Ordering forms and publications. Visit
organization is qualified. Call 1-877-829-5500.
www.irs.gov/formspubs to download forms and
(For TTY/TDD help, call 1-800-829-4059.) publications, call 1-800-829-3676, or write to the
Page 2 Publication 526 (2008)
Excerpt from IRS Publication 526 (2008) ATTACHMENT B
3• Churches, a convention or association of the laws of Israel. The deduction will be allowed
Types of Qualified
churches, temples, synagogues, in the amount that would be allowed if the organ-
Organizations
mosques, and other religious organiza- ization was created under the laws of the United
tions. States, but is limited to 25% of your adjusted
Generally, only the five following types of organi-
gross income from Israeli sources.
zations can be qualified organizations.
• Most nonprofit charitable organizations
such as the Red Cross and the United
1. A community chest, corporation, trust,
Way.
fund, or foundation organized or created in
• Most nonprofit educational organizations,
or under the laws of the United States, any
Contributions
including the Boy (and Girl) Scouts of
state, the District of Columbia, or any pos-
America, colleges, museums, and daycare
session of the United States (including You Can Deduct
centers if substantially all the childcare
Puerto Rico). It must be organized and op-
provided is to enable individuals (the par-
Generally, you can deduct your contributions of erated only for one or more of the following
ents) to be gainfully employed and the
money or property that you make to, or for the purposes.
services are available to the general pub-
use of, a qualified organization. A gift or contri-
lic. However, if your contribution is a sub- a. Religious.
bution is “for the use of” a qualified organization
stitute for tuition or other enrollment fee, it
when it is held in a legally enforceable trust for
b. Charitable.
is not deductible as a charitable contribu-
the qualified organization or in a similar legal
c. Educational. tion, as explained later under Contribu-
arrangement.
tions You Cannot Deduct.
The contributions must be made to a quali-
d. Scientific.
fied organization and not set aside for use by a
• Nonprofit hospitals and medical research
e. Literary.
specific person.
organizations.
f. The prevention of cruelty to children or If you give property to a qualified organiza-
• Utility company emergency energy pro-
tion, you generally can deduct the fair market animals.
grams, if the utility company is an agent
value of the property at the time of the contribu-
for a charitable organization that assists Certain organizations that foster national
tion. See Contributions of Property, later.
individuals with emergency energy needs. or international amateur sports competition
Your deduction for charitable contributions is
also qualify.
• Nonprofit volunteer fire companies.
generally limited to 50% of your adjusted gross
2. War veterans’ organizations, including income, but in some cases 20% and 30% limits
• Public parks and recreation facilities.
posts, auxiliaries, trusts, or foundations, or- may apply. In addition, the total of your charita-
• Civil defense organizations. ganized in the United States or any of its ble contributions deduction and certain other
possessions. itemized deductions may be limited. See Limits
on Deductions, later.
Canadian charities. You may be able to de-
3. Domestic fraternal societies, orders, and
Table 1 in this publication lists some exam-
duct contributions to certain Canadian charita-
associations operating under the lodge sys-
ples of contributions you can deduct and some
ble organizations covered under an income tax
tem.
that you cannot deduct.
treaty with Canada.
Note. Your contribution to this type of
To deduct your contribution to a Canadian
organization is deductible only if it is to be
charity, you generally must have income from
Contributions From
used solely for charitable, religious, scien-
sources in Canada. See Publication 597, Infor-
Which You Benefit tific, literary, or educational purposes, or for
mation on the United States-Canada Income
the prevention of cruelty to children or ani-
Tax Treaty, for information on how to figure your
If you receive a benefit as a result of making a
mals.
deduction.
contribution to a qualified organization, you can
4. Certain nonprofit cemetery companies or
deduct only the amount of your contribution that
Mexican charities. You may be able to de-
corporations.
is more than the value of the benefit you receive.
duct contributions to certain Mexican charitable
Note. Your contribution to this type of Also see Contributions From Which You Benefit
organizations under an income tax treaty with
organization is not deductible if it can be under Contributions You Cannot Deduct, later.
Mexico.
used for the care of a specific lot or mauso-
If you pay more than fair market value to a
The organization must meet tests that are
leum crypt.
qualified organization for merchandise, goods,
essentially the same as the tests that qualify
or services, the amount you pay that is more
U.S. organizations to receive deductible contri- 5. The United States or any state, the District
than the value of the item can be a charitable
butions. The organization may be able to tell you of Columbia, a U.S. possession (including
contribution. For the excess amount to qualify,
if it meets these tests. Puerto Rico), a political subdivision of a
you must pay it with the intent to make a charita-
state or U.S. possession, or an Indian tribal
If not, you can get general information
ble contribution.
government or any of its subdivisions that
about the tests the organization must
perform substantial government functions.
meet by writing to the: Example 1. You pay $65 for a ticket to a
Note. To be deductible, your contribution
Internal Revenue Service dinner-dance at a church. All the proceeds of the
to this type of organization must be made
International Section function go to the church. The ticket to the din-
solely for public purposes.
P.O. Box 920 ner-dance has a fair market value of $25. When
Example 1. You contribute cash to your Bensalem, PA 19020-8518. you buy your ticket, you know that its value is
city’s police department to be used as a less than your payment. To figure the amount of
reward for information about a crime. The your charitable contribution, you subtract the
To deduct your contribution to a Mexican char-
city police department is a qualified organi- value of the benefit you receive ($25) from your
ity, you must have income from sources in Mex-
zation, and your contribution is for a public total payment ($65). You can deduct $40 as a
ico. The limits described in Limits on
purpose. You can deduct your contribution. charitable contribution to the church.
Deductions, later, apply and are figured using
Example 2. You make a voluntary contri- your income from Mexican sources. Those limits
Example 2. At a fund-raising auction con-
bution to the social security trust fund, not also apply to all your charitable contributions, as
ducted by a charity, you pay $600 for a week’s
described in that discussion. earmarked for a specific account. Because
stay at a beach house. The amount you pay is
the trust fund is part of the U.S. Govern-
Israeli charities. You may be able to deduct no more than the fair rental value. You have not
ment, you contributed to a qualified organi-
contributions to certain Israeli charitable organi- made a deductible charitable contribution.
zation. You can deduct your contribution.
zations under an income tax treaty with Israel.
To qualify for the deduction, your contribution Athletic events. If you make a payment to, or
Examples. The following list gives some ex- must be made to an organization created and for the benefit of, a college or university and, as
amples of qualified organizations. recognized as a charitable organization under a result, you receive the right to buy tickets to an
Publication 526 (2008) Page 3
4 ATTACHMENT C
5 6 7 8 9 10 11 12 13 ATTACHMENT D
14 15 16 17 18