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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:
Council passed Resolution 20-01 on January 6, 2020, approving the Articles of Incorporation for the creation of the Marco Island Community Parks Foundation, Inc.
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 low contributions from a variety of 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 failed to satisfy the applicable public-support requirements under Section 509(a) of the Internal Revenue Code.
It is recommended that, by Resolution 26-50, Council approve the dissolution and winding up of the Marco Island Community Parks Foundation, Inc. as a 501(c)(3) public charity and:
1. Transfer the Foundation’s remaining funds to a separate line item in the City’s ledger to be used for City Parks projects, as defined under Article XI of the Foundation’s Articles of Incorporation; and
2. Authorize 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.
FUNDING SOURCE / FISCAL IMPACT: N / A
RECOMMENDATION: Approve Resolution 26-50.
POTENTIAL MOTION: “I move to approve Resolution 26-50”.