Magna Contributions and Fee Waiver Policy - Magna Policy #3


To establish uniform standards and guidelines for the solicitation and distribution of contributions to nonprofit groups serving Magna.

1.0       Policy

It is the policy of Magna to review requests from various groups within Magna for funds or services on the basis of public purpose.

2.0       Definitions

The following definitions will be used when referenced hereafter:

2.1 "Annual Recertification" - The official document filed annually by requesting organizations when those organizations have previously been approved and have been included in regular budget appropriations by the Council.

2.2 "Application Form" - The official document, with noted attachments, that serves as a request for contribution of funds, waiver of fees, use of buildings, property, equipment, personnel services, etc.

2.3 "Budget" - The annual budget for Magna, funding all Magna programs based on a calendar year.

2.4 "Nonprofit Organization" - Any benevolent, artistic, educational, philanthropic, humane, patriotic, social welfare, public health, environmental conservation, civic, or other similar organization which is entitled to tax exempt status under the laws of either the United States or the State of Utah.

2.5 "Contribution" - Any donation of public funds or resources in the form of cash, services, or property.

2.6 "Council"- Elected Magna Metro Township Council.

2.7 "Disbursement of Funds Report" - An official report from any receiving agency briefly detailing how the contribution was used.

2.8 "Mayor/Chair" – Council-elected chair of Magna.

2.9 "Public Purpose" – Magna’s government's authority or responsibility to promote the safety, health, prosperity, moral well-being, peace, order, comfort, or convenience of Magna’s inhabitants.

3.0       General Guidelines

3.1 All contributions made by Magna must be made to help advance a bona fide public purpose.

3.2 Contributions may be made by the Council appropriating funds through either the budget or a separate appropriation in a previously approved budget category. Contribution requests may also be directed to the Mayor/Chair for review and recommendation to the Council. All requests must be made on the official application form noted above in 2.1.

3.2.1 Any request which involves a waiver of fees relating to a special event shall be submitted to the Mayor/Chair for processing.

3.3 No contributions or waivers will be made to any organization which stands to gain commercially as a whole or individually.

3.4 All requestors must be a nonprofit organization.

.3.5 All organizations receiving contributions will be required to submit a "Disbursement of Funds Report" on or before January 31st of the year following the calendar year of contribution. These reports are to be submitted to the Council, Mayor/Chair or designee and any failure to submit the report on a timely basis will subject the organization to potential legal action for recovery of the contributed amounts.

3.6 All contributions must be approved by the Council

4.0       Requests for Contributions/Waivers

4.1 Review Process

4.1.1 Every requested contribution under this policy must reflect a valid Magna public purpose, as set out in paragraph 3.1 and as defined in Paragraph 2.9 above. If a requested contribution does not meet a valid Magna public purpose, it must be rejected.

4.1.2 If a requested contribution meets a public purpose, in order for it to be made in the form of an uncompensated contribution or donation, the Magna must receive fair and adequate consideration in exchange. Any question about whether the proposed contribution provides consideration to Magna shall be resolved by the Council, in accordance with Utah Code Ann. Sec. 10-8-1-2 et al.

4.2 Applications must be submitted on the proper forms available through the Council.

4.3 The Mayor/Chair may establish a separate review committee or process for considering contribution requests made to the Mayor/Chair.

4.3.1 Before a contribution or waiver may be considered, the division, department, or office involved in the contribution must have in place a policy explaining the procedures and purposes for contributions and waivers. That policy must be reviewed and approved by the Council. Amounts anticipated for waivers or contributions must be expressly set out in the annual division, department, or office budget request.

4.3.2 Any request which falls under the criteria outlined in departmental or divisional policies must be processed as such according to those policies, but must meet the minimum legal requirements of this policy and procedure and of state law.

4.3.3 Requests for contributions approved by the Mayor/Chair shall be forwarded to the Council for approval in accordance with state law.

4.4 For any organization which the Council determines to be worthy of on-going annual donations to be included in Magna’s annual budgeting process, the initial request for a donation shall be submitted by the organization in accordance with the terms of this policy and procedure. For each year thereafter when the Council determines to include that organization’s request in the Magna budget, the requesting organization shall file an annual recertification notice which sets out that the nature of the organization and that the services contemplated have not changed from the original request of that organization before any funds may be disbursed.

5.0       Requests for Use or Transfer of Surplus Property

5.1 All requests for the use or transfer of surplus property will be handled pursuant to State law.

6.0       Further legal review

When a matter has been reviewed by either the Council or Mayor/Chair and approved by the Council, in accordance with the provisions of this policy and state law and has been approved as such by Legal Staff, further legal approval is not required unless a separate contract is prepared.

7.0       Authorization for Payment

Payment of authorized contributions will be made by the Council upon receipt of either budget documents establishing that the contribution has been authorized, as to both amount and recipient, in the duly adopted budget or any amendment thereof or evidence that the Council has separately approved the contribution. As appropriate, approval will be accompanied by an agreement documenting the contribution amount and the uses for which it is authorized.