Item - 2012.EX23.17

The Executive Committee recommends that:

1.         City Council adopt the amended “Policy on Donations to the City for Community Benefits” attached as Appendix 1 to the report (September 24, 2012) from the Director, Toronto Office of Partnerships and the Treasurer, deleting the requirement for donors to complete the Donor Declaration Form (as was contained in section 4.4 of the policy) and substitute the following requirements:

1.         All donations must be documented by the recipient division in the following form, and reported through the variance reporting for donations under $50,000 and to City Council for donations above $50,000:

a.         Cash and in-kind donations of $100 or more and under $50,000 must be documented and the terms and requirements communicated to the donor;

b.         Cash and in-kind donations of $50,000 or more must be documented through a legal agreement to the satisfaction of the City Solicitor; and

c.         The donation communication to donors should:

i.          Convey the terms and requirements of the donation, including donor contact information, the purpose of the donation, the value of the donation, information about the tax receipt, how unused funds will be dealt with and the responsibilities of the respective parties;

ii.         A statement acknowledging that the donation may be subject to the provisions of the Municipal Freedom of Information and Protection of Privacy Act;

iii.        For in kind donations, include where necessary in the opinion of the City Solicitor a waiver of liability and an indemnity clause; and

iv.        Include the following statement:

“All donations and/or in-kind donations, made to the City of Toronto and its agencies must be given unconditionally and voluntarily without any expectation of benefit. A donation cannot be used to influence the outcome of an outstanding approval, permit or license application or award of a procurement call. You must advise the City in writing if you, your organization or company is currently involved in a planning approval or procurement process with the City or one of its agencies”.

            2.         All donors must advise the City if a donation is being made concurrently with a planning approval or procurement process in which the donor is involved.

            3.         As part of its due diligence, prior to proceeding with a donation, the recipient Division is responsible for consulting with the Lobbyist Register and relevant stakeholders, where necessary, and conducting a risk/benefit assessment.

2.         City Council authorize the appropriate officials to take the necessary action to give effect hereto.

The purpose of this report is to seek approval to amend the “Policy on Donations to the City for Community Benefits”. The amendment seeks to replace the existing Donor Declaration Form with additional criteria related to the documentation and communication of terms and requirements of the donation. The amendment will align the policy with the City of Toronto Sponsorship Policy adopted by Council on
November 29 and 30, 2011, and facilitate the donations process while maintaining proper financial controls and disclosure.

The Toronto Office of Partnerships (TOP) is responsible for the development and management of corporate infrastructure and capacity to engage, secure and maintain relationships with private and not-for profit partners in order to advance priority City initiatives.  This includes developing policies, procedures and supporting documentation requirements for Divisions and Accounting Services to ensure management controls are in place and adhered to, as well as providing staff training to build competency and capacity related to partnership management. 

TOP reports annually on donations received by the City of Toronto. These recommended changes are intended to improve transparency and accountability.

The Lobbyist Registrar and the Integrity Commissioner have reviewed and agreed to the recommendations contained in this report.