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Agenda Item: 8(b) |
Prepared By: Joan Taylor, City Clerk |
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Business: Resolution |
Department: Executive |
Subject:
Title
Resolution - Dissolution of the Marco Island Community Parks Foundation, Inc. as a Public Charity (501c 3)
Body
BACKGROUND:
In 2020, the Marco Island Community Parks Foundation, Inc. (the “Foundation”) was established as a 501(c)(3) public charity to support parks and recreation initiatives in the City of Marco Island.
Since its establishment, the Foundation has experienced operational and financial challenges, including a four-year hiatus during which it did not meet; continued difficulty obtaining a quorum of Directors; inconsistent and limited contributions from donors; and recurring administrative expenses, including accounting and charitable filing costs, that at times exceeded contributions received.
Following the filing of the Foundation’s FY 2025 tax return, the Foundation’s tax advisor advised that the Foundation no longer satisfied the applicable public-support requirements under Section 509(a) of the Internal Revenue Code and would no longer qualify to be treated as a public charity.
At its September 10, 2026, meeting, the Marco Island City Council unanimously adopted Resolution 26-50, pursuant to Article XI of the Foundation’s Articles of Incorporation, entitled “Dissolution,” providing for the dissolution and winding up of the Foundation and authorizing:
1. The transfer of the Foundation’s remaining funds to a separate line item in the City’s ledger, to be used for City Parks projects consistent with Article XI of the Foundation’s Articles of Incorporation; and
2. City staff to execute and file all documents necessary with applicable state and federal agencies to dissolve the Foundation and terminate its status as a public charity.
Pursuant to Section 617.1402, Florida Statutes, the Foundation’s Board of Directors must also authorize the dissolution of the corporation by resolution approved by a majority of the Directors.
Accordingly, the Board of Directors is being asked to adopt Resolution 26-62 to formally authorize the dissolution and winding up of the Foundation and to carry out the dissolution consistent with the provisions by City Council in Resolution 26-50.
Included is the Foundation’s most recent balance sheet, reflecting the funds that, following final reconciliation of outstanding payments, will be transferred to a separate line item in the City’s ledger.
FUNDING SOURCE / FISCAL IMPACT: N / A
RECOMMENDATION: Approve Resolution 26-62.
POTENTIAL MOTION: “I move to approve Resolution 26-62”.