Legal Review Committee Agenda and Packet 2015 09 17

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ILA Cityor Louisville COLORADO • SINCE 1878 LEGAL REVIEW COMMITTEE AGENDA ITEM 7 SUBJECT: DRAFT POLICY REGARDING 501c3 ORGANIZATIONS AFFILIATED WITH THE CITY DATE: SEPTEMBER 17, 2015 PRESENTED BY: MEREDYTH MUTH, PUBLIC RELATIONS MANAGER SUMMARY: In March the Legal Review Committee discussed the role of and liability issues related to the five 501c3 nonprofit organizations affiliated with the City. All parties agree the different 501 c3s do good work for the City and offer great support for City programs and facilities, however there is concern related to liability issues that may arise and how to differentiate between an outside fund raising group acting independently and the City itself. At that time the Committee directed staff to prepare a draft policy identifying rules a 501c3 would need to abide by to be affiliated with the City. Currently there are five 501c3 non - profit entities are affiliated with the City, either through a board or commission or through a facility. These boards raise funds that are spent directly on City programs or facilities. • Cultural Council • History Foundation • Friends of the Arboretum • Seniors of Louisville • Library Foundation Of these five, three (Library, Seniors, History) are distinct boards that act separately from a City board, one (Arboretum) has a number of members who sit both on the 501 c3 and the Horticulture & Forestry Advisory Board (HFAB), and one (LCC) for which all members appointed to the City board are then also directors of the 501 c3. Staff agrees with comments made at the March meeting that we want to make it easy for the 501s to do business. That said, the suggestions below are designed to protect both the City and the 501c3s. Staff recommends the following policy: Any nonprofit 501c3 organization formed specifically to raise funds for City facilities or programs, or created in association with an official City board, shall agree to the following rules: LEGAL REVIEW COMMITTEE