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Village formalizes fire‑department donation fund with ordinance, approves transfer to newly formed 501(c)(3)
Summary
To address an audit finding and clarify who controls donated funds, the Village adopted Ordinance 26‑02 on March 12, 2026, creating a formal process for accepting and spending fire‑department donations and authorized a one‑time transfer of the existing fundraising balance (reported in the mid‑$40,000 range) to a newly formed 501(c)(3).
The Village Board adopted Ordinance 26‑02 on March 12 to formalize the handling of donations made for the fire department and to bring the village into compliance with Wisconsin Statute 66.0608 regarding municipal handling of donation funds.
Under the new ordinance, donations made to the fire department that are held by the village will be deposited in a designated village account. Expenditure authority for funds under a specified threshold will be delegated to authorized officials identified in the ordinance (the fire chief and the fire‑department treasurer) subject to documentation requirements; expenditures above the set threshold must be approved by the village board. The ordinance requires that village checks be issued by the treasurer (to maintain audit‑clean accounting) and that receipts and supporting documentation be retained and available for audit.
Board members said the ordinance responds to recurring audit flags where donations were held and expended outside of the treasurer’s controlled accounts. The fire department has chosen to create an external 501(c)(3) charitable organization to receive future fundraising proceeds; the board authorized a one‑time transfer of the existing balance of the fundraising account (reported in the mid‑$40,000 range) to that newly formed charity and directed closure of the village account that previously held those funds. The auditor (Paul) indicated the one‑time transfer under these conditions is acceptable for audit purposes.
The ordinance motion included a requirement that the draft be routed for legal review and then formally placed into ordinance form. The board approved the ordinance with that legal review requirement and approved the one‑time transfer in a separate motion.
The ordinance aims to protect donor intent, ensure proper accounting and preserve the fire department’s ability to use donated funds for gear, training or other authorized purposes within the thresholds and approval processes set by the ordinance.
