Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Nonprofit Agreements topic
No spam. Unsubscribe anytime.
Council corrects Audubon Days agreement to reflect 501(c)(6) nonprofit status
Summary
City officials discovered the Audubon Days use-of-funds agreement described the organization as a 501(c)(4); legal counsel confirmed the actual IRS determination is 501(c)(6), and the council voted to update the agreement language accordingly.
The City Council reviewed an existing use-of-funds agreement with the Audubon Days organization and voted to correct the document’s nonprofit classification.
Staff told the council the agreement described Audubon Days as a 501(c)(4), but that the organization’s IRS determination letter shows it is a 501(c)(6). City legal counsel confirmed a 501(c)(6) designation is tax-exempt for donations in the same way relevant to the city’s agreement and differs from a 501(c)(3) charitable organization.
A motion to change the agreement language from 501(c)(4) to 501(c)(6) passed (motion by Reginald; second by Olsen). Council members directed staff to draft the corrected agreement, have Audubon Days sign the revised agreement and keep a signed receipt on file.
