Adrian DDA board approves Adrian DDA Fund at Lenawee Community Foundation to accept tax-deductible donations
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Summary
At its April 8 meeting the Downtown Adrian Main Street DDA approved creating the Adrian DDA Fund at the Lenawee Community Foundation to allow tax-deductible donations, pursue corporate partners and streamline gift administration; initial administrative cost is $20 per month, covered for the first year by a donor.
The Downtown Adrian Main Street DDA voted on April 8 to establish an "Adrian DDA Fund" at the Lenawee Community Foundation to enable charitable fundraising and accept tax-deductible contributions.
Catherine Denu, interim DDA director, told the board the Adrian DDA currently lacks 501(c)(3) status and that creating a non‑endowed community project fund within Lenawee Community Foundation would allow the DDA to accept donations from corporations, foundations and individuals and provide IRS‑compliant documentation for donors. "Establishing a community project fund with the Lenawee Community Foundation will provide a solution by allowing donations to be made through a recognized charitable entity," Denu said.
Denu described the proposed governance and costs: the fund would be non‑endowed (contributions not invested), the administrative cost is approximately $20 per month (about $240 annually), and a donor has committed to covering the first 12 months of that fee. She said funds collected would be used exclusively for approved Downtown Adrian initiatives and that, while the DDA may recommend distributions, disbursements must align with the charitable purpose of the fund and are subject to approval by the Lenawee Community Foundation board.
Paula, representing the Lenawee Community Foundation, addressed board concerns about the foundation declining distribution requests. After describing her 29 years with the foundation, she said she could not "think of a time where that has happened" and that the foundation would review requests for alignment with the fund's mission. "We would certainly talk about it at the board or the board would talk about it," Paula said, adding the foundation provides donor receipts and reporting access to authorized signatories.
Denu identified the authorized signatories proposed for online access and reporting as Nathan Owens (finance director, City of Adrian), Darcy Gifford (acting board chair), and herself. She said Lenawee Community Foundation will maintain internal controls, including a multi‑signer approval process, and that the DDA would need to address future funding for the administrative fee in its next budget if it wished to continue covering the cost beyond the first year.
A board member asked whether the fund would appear on the foundation's giving portal; Denu said the Adrian DDA would be listed in the drop‑down fund menu on the foundation site and that Paula could create QR codes for events to facilitate donations.
A motion to approve establishment of the Adrian DDA Fund with the Lenawee Community Foundation was moved and seconded and carried on a voice vote. The board will proceed with the fund setup and incorporate ongoing administrative costs into future budgeting discussions.
Next steps: the DDA director will work with the Lenawee Community Foundation to complete fund setup and report back to the board on implementation and any required administrative procedures.
