Discussion regarding the treatment of bonafide Non Profit Organizations. City of Culver City California City Council Agenda Item Report Meeting Date: 09/12/05 Item Number: A 3 AGENDA ITEM: Discussion of City Policies and Practices Definition of a Bonafide Non Profit Organization . Contact Person/Dept.: Nagam Rao/City Treasurer's Office Phone Number: (310) 253 5889 Fiscal Impact: Yes Public Hearing: Public Notification: Master Notification List on 9/7/05 x No General Fund: Yes x No Attachments: Action Item: x Department Approval: Crystal C. Alexander City Controller Approval: Marlee Chang 9/6/05 9/1/05 RECOMMENDATION: CAO Approval: Jerry Fulwood 9/7/05 That the City Council approve a policy regarding the treatment of bonafide Non Profit Organizations and direct the City Treasurer to draft for the City Council s adoption a policy on the manner in which such organizations are to be treated with respect to business tax. BACKGROUND: According to the Culver City Municipal Code of the various possible non profit organizations only charitable organizations and homeowners associations are mentioned under the list of exempted businesses and organizations. Charitable organizations are required to obtain a business tax certificate but not required to pay any business tax. Homeowners associations are neither required to obtain a business tax certificate nor pay any business tax. Under Section 11.01.230 of the City of Culver City s Municipal Code Charitable Organizations are defined as: Any organization conducting a business or activity for charitable purposes; which presents proof of its designation as a tax exempt organization for charitable purposes in a form which is satisfactory to the City Treasurer. For purposes of this Section the Committee may also make a determination that an organization or business is conducting an activity which has a charitable purpose . The Committee referred to in the previous paragraph is the Committee on Licenses and Permits. City of Culver City...
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