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FIN-13
Approved by Council Resolution 173-25 May 27, 2025
FIN-013
DONATION AND SPONSORSHIP
POLICY
Contents
1.
Purpose ......................................................................................................... 2
2.
Scope ............................................................................................................ 2
3.
Definitions ...................................................................................................... 2
4.
Guidelines for Monetary Donations ................................................................ 3
4.1
Monetary Donations................................................................................ 3
4.2
Donations for Specific Event Operating Budgets .................................... 3
4.3
Donations for Infrastructure and Memorial Projects ................................ 3
4.4
Roles and Responsibilities ...................................................................... 3
5.
Guidelines for Non-Monetary Donations ........................................................ 4
5.1
Non-Monetary Donations ........................................................................ 4
5.2
Donations of Land and/or Buildings ........................................................ 4
5.3
Agreements with Donors ........................................................................ 5
5.4
Acceptance of Donations ........................................................................ 5
5.5
Roles and Responsibilities ...................................................................... 5
6.
Guidelines for Sponsorships .......................................................................... 6
6.1
Sponsorship of Municipal Recreation or Events ..................................... 6
6.2
Sponsorship of Municipal Programs or Facilities .................................... 6
6.3
Recognition of Donors and Sponsors ..................................................... 7
6.4
Roles and Responsibilities ...................................................................... 7
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Approved by Council Resolution 173-25 May 27, 2025
7.
Council Approval of Donations....................................................................... 7
8.
Special Provisions for Donations Related to Shared Community Projects .... 8
9.
Matching Contributions by Council/Municipal Budget .................................... 8
10.
Donation Receipts and Tax Receipts ......................................................... 8
11.
Online Crowdfunding and Donation Platforms ........................................... 9
12.
Administration and Review ......................................................................... 9
1. Purpose
This policy provides guidelines for accepting, recognizing, and managing
donations and sponsorships to the Municipality of Mississippi Mills to enhance
municipal services, programs, events, and facilities. It ensures consistency,
transparency, and accountability in the acceptance and stewardship of donations
and sponsorships.
2. Scope
This policy applies to donations accepted by the Municipality:
- Monetary donations
- Non-monetary donations, including equipment, artwork, land, and other
goods or services.
- Donations directed toward municipal projects, community events, and
shared community-municipal initiatives.
- Sponsorship of specific events or programs, such as recreation activities
and festivals.
3. Definitions
a) Donation: A voluntary gift of cash, goods, or services provided to the
Municipality without compensation or valuable consideration.
b) In-kind Donation: Non-monetary gifts made to the Municipality, which may
include physical goods, no cost services, tangible and intangible goods,
volunteer time, or professional services
c) Recognition: The acknowledgment of a donor or sponsor's contribution.
d) Sponsorship: A cash or in-kind contribution to support a municipal event,
program, or facility, typically with the expectation of public recognition.
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Approved by Council Resolution 173-25 May 27, 2025
4. Guidelines for Monetary Donations
4.1 Monetary Donations
All donations must be unconditional unless specifically approved by the
Municipality. The Municipality will accept donations that align with its mission,
strategic goals, and community needs. Staff in consultation with the CAO and
Mayor may decline donations that do not meet this criteria.
Monetary donations can be directed toward specific projects or programs, subject
to municipal approval. Specific projects or programs must be endorsed by
Council before staff can accept donations for such projects or programs. In the
case of project or program specific donations, the intent to proceed with said
project or program must be confirmed by Council before donations will be
accepted.
4.2 Donations for Specific Event Operating Budgets
Committees managing municipal events (e.g., 'Light Up the Night') may collect
donations specifically for that event's operating budget. Accountability
mechanisms should be clearly stipulated prior to the event to ensure that
donated funds are duly provided to the Municipality in full. Donated funds should
not be used to cash flow expenditures but rather be accounted for and remitted in
full, with appropriate expense claims submitted separately for reimbursement.
Event-based donations collected on-site (e.g., during fireworks displays or at
other gatherings) will be managed by the municipal Finance Department for
tracking and accounting purposes. Donation receipts will not be provided for
event-based donations collected on-site.
4.3 Donations for Infrastructure and Memorial Projects
Donations for items such as benches and plaques may be accepted according to
the Municipality's existing policies on memorial donations.
For projects such as the Riverwalk or other community assets, donor recognition
options may include name plaques or other forms of acknowledgment approved
by Council.
4.4 Roles and Responsibilities
With respect to monetary donations,
Council is responsible for:
- approving specific projects and programs for which donations will be
accepted
- approving Municipal events for which donations will be accepted
- approving policies related to memorial donations
- approving donor recognition options and programs
Staff are responsible for:
FIN-13
Approved by Council Resolution 173-25 May 27, 2025
- accepting donations for projects, programs and events as identified and
approved by Council
- documenting and enforcing accountability mechanisms that ensure that
donations are collected, managed, safeguarded, and recorded accurately
- carrying out recognition programs as approved by Council
- consulting with the CAO and Mayor as necessary to assess whether a
donation aligns with the Municipality's mission, strategic goals, and
community needs
5. Guidelines for Non-Monetary Donations
5.1 Non-Monetary Donations
The Municipality will accept donations that align with its mission, strategic goals,
and community needs. Staff in consultation with CAO and Mayor may decline
donations that do not meet this criteria.
All donations must be unconditional unless specifically approved by the
Municipality.
Non-monetary donations, including artwork and equipment, will be assessed for
relevance, condition, maintenance costs, and potential liability. Once accepted,
the Municipality assumes responsibility for the care, maintenance, and storage of
donated items.
5.2 Donations of Land and/or Buildings
Donations of land and buildings will be assessed for criteria specific to each
donation. The Corporate Services department will coordinate the initial
assessment to consider condition, risk, forecasted operating expenditures,
maintenance requirements, location, and other relevant factors.
Included in the initial assessment staff will convey whether an up to date survey
is available, and whether there are any known liens or other restrictions on title or
legal costs that might be associated with the transfer of the property.
This initial assessment report shall be brought to Council to determine whether
the donation should be further evaluated.
If Council approves further consideration of the donation, a Phase 1
Environmental Site Assessment (ESA) and if required a Phase 2 ESA and
Record of Site Condition will be obtained. Staff will conduct a title search to
ensure there are no other liens or other restrictions on title. Staff will make
recommendations to Council about further terms of a donation agreement
including but not limited to financial responsibility for obtaining a survey and legal
costs for transfer of the property, and any other considerations specific to that
particular property. The results of this second assessment report will be brought
to Council for final evaluation and acceptance or not of the donation.
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Approved by Council Resolution 173-25 May 27, 2025
The Municipality is not obligated to accept donations or bequests of land and/or
buildings.
5.3 Agreements with Donors
In the case of artwork or other valuable items, the donor may stipulate
requirements related to:
- Care and Maintenance
- Cleaning
- Security
- Insurance
- Temperature / environment
- Copyright
- Other
If the Municipality is unable to meet the requirements as set out by the donor, the
Municipality and donor may agree that the donation be made as a temporary
installation, or not be made at all.
Donated items may be removed, relocated, or altered based on condition, safety,
or municipal needs.
The Municipality and the donor may wish to enter into an agreement respecting
the donation. The agreement must include the items listed above in this Section
5.3, and acknowledgement by the donor that donated items may be removed,
relocated, altered, disposed of, sold, transferred or gifted at the sole discretion of
the Municipality. Alternative arrangements may be agreed to between the donor
and Municipality. All agreements must be approved by Council.
5.4 Acceptance of Donations
The Municipality is not obligated to retain donated items for any specific period of
time, and should the Municipality decide to dispose of, sell, transfer, or gift the
donation this is at the sole discretion of the Municipality, unless otherwise agreed
with the donor.
5.5 Roles and Responsibilities
With respect to non-monetary donations,
Council is responsible for:
- approving any conditions that may be associated with a proposed
donation
- reviewing initial assessment information to direct staff whether or not to
proceed with further evaluating a land or building donation
- reviewing second assessment information and approving or not approving
a land or building donation
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- approving the donation agreement to finalize acceptance of non-monetary
donations, where applicable
Staff are responsible for:
- assessing condition, maintenance costs, and potential liability and sharing
this information with Council to support decision making related to
acceptance of non-monetary donations
- coordinating the initial assessment of condition, risk, forecasted operating
expenditures, maintenance requirements, location, and other relevant
factors related to proposed land or building donations
- following direction from Council related to further assessment including
Phase 1 and Phase 2 ESAs and title search for proposed land or building
donations
- making recommendations to Council about further terms of a donation
agreement including but not limited to financial responsibility for obtaining
a survey and legal costs for transfer of the property, and any other
considerations specific to that particular property
- drafting a donation agreement for Council's consideration and approval,
where applicable
- consulting with the CAO and Mayor as necessary to determine whether a
non-monetary donation aligns with the Municipality's mission, strategic
goals, and community needs
6. Guidelines for Sponsorships
6.1 Sponsorship of Municipal Recreation or Events
Sponsorships for events (e.g., Public Skating, Canada Day celebrations) may be
accepted and can be publicly acknowledged at the event or on promotional
materials.
Sponsorships and associated recognition must comply with municipal branding
and public presentation standards. The Municipality is not obligated to approve
sponsorships and staff, in consultation with the CAO and Mayor, may exercise
discretion in accepting sponsorships, especially related to the mission, vision and
values of the sponsoring organization.
6.2 Sponsorship of Municipal Programs or Facilities
The Municipality may seek and/or approve sponsors for programs such as asset
improvements or beautification. New sponsorship programs shall be approved
by Council.
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In the event that a sponsorship program is agreed upon, such programs shall be
automatically renewed on an annual basis, where appropriate, without renewal of
Council approval.
6.3 Recognition of Donors and Sponsors
Donors and sponsors will be recognized based on the level of contribution, with
appropriate options including public acknowledgment, plaques, certificates, or
naming opportunities (subject to municipal approval).
The Municipality may provide plaques or install donor-recognition features on
specific projects as appropriate.
Donor and sponsor recognition shall be clearly communicated, in writing, prior to
the Municipality engaging in a fundraising initiative.
6.4 Roles and Responsibilities
With respect to sponsorships,
Council is responsible for:
- Approving any new sponsorship programs before implementation
- Approving recognition mechanisms as part of any new sponsorship
program
Staff are responsible for:
- Carrying out public acknowledgement for sponsorships in alignment with
branding and public presentation standards
- Introducing sponsorship programs as approved by Council
- Carrying out recognition for sponsorships as approved by Council
- Consulting with the CAO and Mayor as necessary to determine whether a
sponsor or sponsorship aligns with the municipality's mission, vision and
values
7. Council Approval of Donations
In circumstances where funds are raised for projects that have not previously
been approved by Council, acceptance of donations is conditional on Council
approval. Direction from Council related to acceptance of donations and how the
funds will be spent if the project does not proceed must be shared with donors
prior to acceptance of the donation.
In accepting funds raised for specific projects, a written agreement between the
Municipality and the donor(s) shall be made, detailing the purpose of the
donation, the reserve account in which the funds will be held, contact information
for the donor(s), time limitations for the project if any, and how the funds will be
spent if the project does not proceed.
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Approved by Council Resolution 173-25 May 27, 2025
8. Special Provisions for Donations Related to Shared Community
Projects
The Municipality will enter into an agreement to clarify roles, responsibilities,
outcomes, financial implications, resourcing, and any other important information
respecting shared community projects.
For projects undertaken in partnership with community organizations, donations
may be accepted with terms defining the responsibilities of each party.
For community-led projects on municipal land, donations may be accepted to
support the project's goals, but terms of use and responsibility must be clearly
defined.
It is recognized that the Volunteer Firefighter Associations which operate in
Almonte and Pakenham are separate entities from the Corporation of the
Municipality of Mississippi Mills. While shared community interests do exist,
fundraising and expenditures related to the associations are managed wholly by
those associations and not managed, influenced, monitored, audited, or
overseen by the Municipality.
9. Matching Contributions by Council/Municipal Budget
Council may match donations to significant projects (e.g., Riverwalk), with the
matching contribution determined during budget deliberations and subject to
available funds.
10. Donation Receipts and Tax Receipts
Receipts will be issued for qualifying donations. Donors are encouraged to seek
independent tax advice on the benefits of their contributions.
The Municipality of Mississippi Mills is a qualified donee under the Income Tax
Act, but is not a Registered Charity. The Municipality can issue official donation
receipts for income tax purposes. Before issuing a receipt, the Municipality must
ensure that the donation qualifies as a gift under the Income Tax Act and
determine the eligible amount of the gift.
For a donation to qualify as a gift in Ontario, it must meet several criteria under
the Income Tax Act:
1. Voluntary: The donation must be given freely without any obligation or
expectation of return. If it's made due to a contractual obligation or court
order, it doesn't qualify as a gift.
2. Transfer of Property: The donation must involve a transfer of property,
such as money, securities, or real estate. Donations of services (like time
or labor) do not qualify.
3. No Advantage: The donor must not receive any significant benefit or
advantage in return for the donation. If the donor does receive something
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in return, the value of that benefit must be deducted from the donation
amount to determine the eligible gift amount. .
4. No Directed Gifts: The donor cannot direct the donation to a specific
individual or non-qualified donee. However, they can specify that the
donation be used for a particular program within the qualified donee's
operations.
5. Conditions: If there are conditions attached to the gift, such as a
requirement for the donee to raise matching funds, the gift is only
considered valid once those conditions are met.
These requirements ensure that the donation is genuinely charitable and eligible
for a tax receipt.
The Municipality cannot act as a flow-through organization for other non-
registered charities or organizations. Donations intended for third-party groups
will only be accepted if they directly support municipal projects or programs and
align with the Municipality's charitable purposes.
Eligible Tax Receipts: The Municipality will issue tax receipts for donations that
qualify under CRA guidelines. Contributions that do not qualify as donations
(e.g., sponsorships with advertising or marketing benefits) are ineligible for
charitable tax receipts.
Receipts for non-monetary donations may be issued at the fair market value of
the gift, established by at least one documented third party assessment obtained
by the Municipality. Receipts will not be given for donations of time such as for
volunteering or supporting Municipal events.
Staff are responsible for issuing receipts in accordance with the Income Tax Act.
11. Online Crowdfunding and Donation Platforms
The Municipality may use online crowdfunding platforms for specific projects or
initiatives, provided they meet municipal and CRA guidelines. Information on
donation use, transparency, and fees will be shared with potential donors.
12. Administration and Review
This policy will be administered by the Finance Department, with support from
relevant departments.
The policy will be reviewed every five years or as required to ensure alignment
with municipal objectives, legislation, and best practices.