HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/28/2017 - CITY FOUNDATION CREATIONDATE:
STAFF:
February 28, 2017
Nalo Johnson, Grants Development Specialist
Mike Beckstead, Chief Financial Officer
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
City Foundation Creation.
EXECUTIVE SUMMARY
The purpose of this item is to provide an update to City Council as to establishing a City of Fort Collins
Foundation (City Fund) through the Community Foundation of Northern Colorado, as advised by the Council
Finance Committee. The update provides an operational recommendation as to how the City Fund will be
implemented and seeks Council input on the planned implementation.
Residents may currently donate directly to the City as well as to city-related non-profits, such as the Friends of the
Gardens on Spring Creek or the Lincoln Center Support League. Creation of the City Fund offers people another
option by which they may donate to the City. The City Fund seeks to enhance City-related projects and should
not be viewed as a replacement for the City budget. The City Fund will be governed by an Advisory Committee
similar to the ways in which Community Fund Committees are structured at the Community Foundation of
Northern Colorado. The City Fund will be structured as a portfolio of funds to encompass both organic funding
needs (project ideas generated by the Advisory Committee, Council, City staff and/or community members
themselves) and strategic funding needs (projects that are related to a specific City priority or initiative).
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. What feedback does Council have as to the City Fund Framework?
2. What feedback does Council have as to the structure of the Advisory Committee?
3. What feedback does Council have as to the role of the staff liaison/Donor Relations role?
BACKGROUND / DISCUSSION
In consideration of innovative strategies to fund City-related initiatives, an investigation into establishing a City
Foundation was undertaken in the past year. The investigation concluded that there are no existing models
where a municipal foundation has been created to explicitly fund City-sanctioned projects. Donor options were
presented to the Council Finance Committee in October 2016, which recommended that the City move forward
with establishing a City Fund at the Community Foundation of Northern Colorado (CFNC) as well as examine the
City’s internal processes to eliminate any barriers to donating directly to the City.
A City Fund operational update was presented to the Council Finance Committee in January 2017 which
recommended establishing the City Fund at the CFNC as a “designated fund” in support of the stated purpose:
“Allow residents an opportunity to support initiatives for the City of Fort Collins to provide world-class services
through operational excellence and a culture of innovation.” The City Fund will encompass both project-specific
funds as well as an “unrestricted funds” bucket to be granted to applying departments at the discretion of the City
Fund Advisory Committee. The Advisory Committee will govern the City Fund and consist solely of community
members. However, City Council and City staff may support the Advisory Committee through offering project
recommendations and supporting fundraising efforts.
February 28, 2017 Page 2
Success for the City Fund may be defined as:
A way in which to enhance City projects
Access to a non-profit arm to receive and administer grant funds
An option for those who do not want to give directly to the City
The City Fund’s measures for success may include:
Donor participation rates
Ability to meet fundraising goals
Alignment between City Fund priorities and the City’s triple bottom line approach
Next steps will include:
On March 21, a resolution will be put forward to establish the City Fund Agreement with the CFNC
Identifying how best to resource a staff liaison/Donor Relations role
Identifying whom to participate on the Advisory Committee Nominating Team
Potentially establish an account balance for the City Fund and/or identify a specific project to initially fundraise
for once the Advisory Committee is in place
Staff seeks Council’s input as to the operational recommendation for the City Fund.
ATTACHMENTS
1. Powerpoint presentation (PDF)
1
Establishing the City Foundation
Dr. Nalo Johnson – February 28, 2017
ATTACHMENT 1
Background
• Investigation into the creation of a City Foundation (City Fund)
• Perception that it is difficult to leave donations to the City
• Strategic benefits associated with the City’s access to a non-profit arm
• Along with literature review, interviewed local donors and foundation staff as
well as consulted with the CAO
• Investigation concluded:
• No existing models where a municipal foundation is created to explicitly fund
City-sanctioned projects
• Presented three options to Council Finance in October 2016
• Recommended to establish City Fund at CFNC and examine internal processes
• City Fund Operational update provided to Council Finance in January
2
Why create a City Fund?
What does success look like?
• Way in which to enhance City projects
• Access to a non-profit arm to receive and administer grant funds
• Option for those who do not want to give directly to the City
What are the fund’s measures for success?
• Donor participation rates
• Ability to meet fundraising goals
• Alignment between City Fund priorities and City’s triple bottom line approach
Purpose Statement:
Allow residents an opportunity to support initiatives for the City of Fort Collins to provide
world-class services through operational excellence and a culture of innovation.
3
City Fund:
Project-Specific or Unrestricted Donations
City Fund (umbrella)
Designated fund in support of the stated fund purpose:
Allow residents an opportunity to support initiatives for the City of Fort Collins to provide world-class services through
operational excellence and a culture of innovation.
Project-Specific Funds
- Project-specific designated funds
- Funding distributed specifically to the
project (no application)
- Under the umbrella City Fund agreement,
separate fund agreements may be created
for each project-specific fund
Unrestricted Donations
- Advisory Committee would award grants to
applying departments
4
City Fund: Framework
CFNC:
- Advisory Support
- Fiscal Agent
Establish
City Fund
Council:
- Advisory Cmte Selection
- Project Recommendation
- Support Fundraising
City Fund
Advisory Cmte:
- Project Selection
- Fundraising
- Governance
Govern
City Fund
Support
City Fund
City Staff:
- Staff Liaison (Donor Relations)
- Project Recommendation
- Support Fundraising
- CAO Fund Agreement Review
- Financial Acceptance
5
Support
City Fund
City Fund: Recommendations
to Establish the Advisory Committee
• Step 1: Establish Staff Liaison/Donor Relations role
• Champions the City Fund vision (goals and measures of success)
• Develops list of potential local donors & maintains donor relationships
• Identifies key donors for Advisory Committee consideration
• Step 2: Nominating Team
• Alternative 1 – Consists of Council Members and CFNC staff
• Alternative 2 – Consists of Council Members, City Staff and CFNC staff
• Identify well-connected individuals or people with personal wealth
• Identify individuals that reflect the breadth of the community
• Be clear that committee/fund is more project-focused at this time
• Step 3: Advisory Committee Structure
• 6-8 members; serve up to two three-year terms
• Committee is independent of the City organization
• CFNC staff member advises committee; City staff liaison as POC for committee
6
City Fund: Policy Guidelines
• Create a Fund Agreement between CFNC & the City to establish a City Fund
• Designated fund in support of the stated fund purpose
• Anticipate a portfolio of funds will fall under the City Fund
• CAO can customize the standard fund agreement language
• Recommendations for Project-Specific fund selection
• Need identified by City Leadership/Council, Advisory Committee or Community members
• Identified area of enhancement to a current budget item or city asset
• Recommendations for awarding projects under the “unrestricted” fund
• Application process established with help of CFNC
• Utilize staff liaison to communicate department interests to the Advisory Committee
7
City Fund: Key Caveats
• Councilmembers and/or City staff may fundraise on behalf of the fund,
but cannot be on the Advisory Committee
• IRS deems a conflict of interest
• Project-specific funds may be identified by Advisory Committee
• City may independently approach Advisory Committee
• Community members may approach City with specific requests to approach
Advisory Committee
• City Fund is not a replacement for City Budget but a way in which to
enhance what is funded through the budget and tax initiatives process
8
Next Steps
1) Council/Staff Action
• Resolution to establish umbrella fund agreement
• CAO works with CFNC to finalize fund agreement
• Identify how best to resource Staff liaison/Donor Relations role
• Identify whom to participate on the Advisory Committee Nominating Team
• Establish the Advisory Committee
• CFNC and Staff liaison/Donor Relations role implement committee’s onboarding process
• Potentially establish an account balance for the City Fund and identify a specific project to
initially fundraise for once Committee is in place
2) Messaging and Promotion
• Work with CPIO, CFNC, staff liaison and Advisory Committee to develop and implement
branding and marketing plan
9
Upcoming Resolution
• Anticipate the City Fund Resolution will include:
• Language identifying the intent and goals for the City Fund
• Council endorsement of the fund agreement
• Direction approving the City Manager to sign the fund agreement
• Language suggesting Council’s interest in supporting City Fund efforts
• Language suggesting Council’s expectations of reporting amounts received and
the use of the donation
10
Fundraising Examples
• Historical Projects:
• White Water Park
• Additional features at the SE Community Center
• Poudre River Heritage Walk
• Future Potential Projects:
• 9/11 Memorial Garden at Spring Park
• Enhanced design features at Community Parks (i.e. Streets Park)
• Staff training (i.e. culturally appropriate community engagement training)
• Buy-a-Brick for Old Town Parking Structure
11
Council Direction
Is Council supportive of moving forward with a Resolution to establish the
City Fund as detailed in this presentation?
Any additional insight Council may have as to the recommendation to
operationalize the City Fund?
12
Back-Up Slides
13
Additional Information:
Three Ways to Give to the City
Donation Flowchart:
Three Ways to Give to the City
14
Donors
City Fund
Unrestricted
Project-Specific
Directly to City
City-related
Non-profits
Three Ways to Give to the City
1) Establish a City Fund in connection with CFNC
• City Fund will be structured as a portfolio of funds to encompass both organic
and strategic funding needs
2) Give directly to the City
• Section 4.7 of City Administrative Policies allows donations to be accepted by
Council or the City Manager
3) Donate to non-profits related to City entities
• Friends of the Gardens on Spring Creek; Fort Collins Museum of Discovery;
Lincoln Center Support League
15
Donating directly to the City
• Flexibility is key
• Not all donation situations are alike
• Donors need a “point of contact” to help them through the process
• This can be maintained within each department or through the Donor Relations role
• Relational factor important
• Coordinated internal effort makes a smoother donor experience
• Consider “point” staff member to lead donors through the process
• Staff member responsible for thanking, receipting, recognition
16
Donating to City-related non-profits
• Communicating City Fund intention/goals
• City Fund is not competition to other fundraising entities
• Friends of the Gardens on Spring Creek; Fort Collins Museum of Discovery; Lincoln
Center Support League
• City Fund may enhance, not replace, current fundraising entities
• Stakeholder awareness
• Engage our non-profit collaborators prior to City Fund kick-off
• Allow them the space to inform how the City Fund may enhance their efforts
• Donor Relations role may maintain contact with non-profit collaborators to
ensure good will
17