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Guadalupe approves MOU with GCAC to serve as fiscal sponsor for Royal Theater campaign
Summary
The council approved a memorandum of understanding authorizing the Guadalupe Community Action Coalition (GCAC) to accept donations and act as fiscal sponsor for the Royal Theater capital campaign; GCAC may retain a 3% administrative fee and must keep records and carry insurance.
The Guadalupe City Council approved a memorandum of understanding with the Guadalupe Community Action Coalition (GCAC) to act as fiscal sponsor for the Royal Theater capital campaign and to accept monetary donations on behalf of the project.
City staff presented the draft MOU and said GCAC — a nonprofit corporation formed by the city to assist with projects the city cannot directly accept funding for — would be authorized to receive donations, host campaign information on its website, and accept online and check donations. The MOU limits GCAC to accepting monetary donations only; in‑kind donations were excluded pending appraisal, logistics, and separate financial arrangements.
Phil (city staff) and Tom Brandaberry (on Zoom), who reviewed the draft, explained that GCAC would be required to keep books and records under generally accepted accounting practices, carry its own insurance, and indemnify the city. The MOU also allows GCAC to retain a monthly administrative fee equal to 3% of gross donations to cover expenses such as insurance, bank fees and website costs. Phil noted that GCAC currently has minimal expenses and that much of the work may be volunteer‑run initially.
Council members asked about GCAC’s membership and expenses; staff said the corporation’s bylaws include the city administrator and finance director as officers and that three non‑city members currently serve on the board (including Michael Jimenez and Garrett Mansura). The staff report said the MOU will remain in effect until the capital campaign concludes or either party terminates with 30 days’ notice.
A motion to approve the MOU was made and seconded; the council approved the measure unanimously. The staff report said GCAC will provide monthly records of donations and that the next step is GCAC board review at its June 4 meeting.
The council did not approve acceptance of in‑kind donations through GCAC because of added administrative costs and appraisal requirements; staff said the MOU was intentionally limited to financial donations to keep the initial arrangement simple.
