TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Dan Atchison, City Attorney
SUBJECT:
title
City Council Policy on Acceptance of Donations.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance.
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SUMMARY:
summary
A draft City Council Policy on acceptance of donations is presented for Council’s consideration in response to Council’s direction from the November 10, 2025 Council Meeting (Resolution No. 2025-31).
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ISSUE:
Shall City Council adopt Resolution No. 2025-31, adopting a City Council Policy on acceptance of donations?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2025-31, adopting a City Council Policy on acceptance of donations.
body
FACTS AND FINDINGS:
At the November 10, 2025 Council meeting, City Council adopted a motion from Councilor Nordyke directing staff to prepare a Council Policy concerning acceptance of donations.
The adopted motion sought to provide a framework for accepting donations to the City, URA and SHA to ensure accountability, transparency, prevent corruption and maintain public trust. The draft policy provides:
• Applies to the City, Urban Renewal Agency and Housing Authority,
• Donations must be in the best interests of the City and the public to be accepted.
• Identifies two types of donations; “designated” and “undesignated.” Undesignated donations are not conditioned on any particular purpose or use. Designated donations are conditions for a specific purpose or use.
• Designated donations of $500,000 or less may be accepted by the City Manager, unless acceptance and implementation of the donation requires some other council action, such as adding positions to the budget or other actions requiring council approval. If separate Council action is required, Council action will be required to accept the donation.
• Designated donations greater than $500,000 may only be accepted by the City Council.
• Determining whether acceptance of a donation is in the best interests of the City and the public shall be considered based on multiple factors:
o Is the purpose of the donation consistent with City policy,
o Does acceptance require the City to spend City funds,
o Will the donation create an ongoing obligation for the City or create an undue administrative burden,
o Is there a City match or supplement required to use the donation,
o Does the donation appear to reward or influence a City public official, and
o Does the donation appear to encourage special treatment for the donor.
The above factors will be taken into consideration to determine if acceptance is in the City’s and public’s best interest. Factors may be weighed depending on the specific facts surrounding the donation. In some circumstances, a donation may be consistent with and support a City Policy, but consideration of other factors, such as the cost of long-term obligations related to the donation, may outweigh the benefit of the donation and the donation may be rejected.
• Affiliated nonprofits. For many years the City has maintained a beneficial relationship with private groups who have organized to support a specific City program or service.
These groups, like the Salem Public Library Foundation and Friends of Center50+, have donated countless hours and substantial and invaluable monetary support for City program and services. The City highly values their contributions to these programs and the beneficial impact they make on our residents and community.
Under the draft policy, donations from an affiliated nonprofit that are made to a specific City program or service are treated as unspecified donations, meaning that may be simply accepted by the City upon a determination that the donation is in the best interest of the City and the public. Note that if the donation is not simply for the general use of the City program or service, it would be considered a designated donation and the factors in the policy for acceptance of that type of donation would apply.
• Anonymous donations. In some instances, the City may receive a donation and the City does not know the identity of the donor or the donor wishes to remain anonymous.
The donation may be designated or undesignated. The same process and factors would apply to acceptance of the donation. The donation must be in the City’s and public’s best interest. If the donation is for a designated purpose, the factors set forth in the policy must be considered. In situations where the City knows the identity of the donor, but the donor wishes to remain anonymous, the City will work to accommodate the donor’s desires, however, the anonymous nature of the donation will be taken into account in consideration of the factors set forth in the policy.
Grants are considered separately from donations and are governed by City Council Resolution No. 2017-24. Gifts to City public officials are generally prohibited and governed by City and State ethics laws.
BACKGROUND:
At the November 10, 2025 City Council meeting, Council directed staff to prepare a Council Policy on acceptance of donations by the City.
Dan Atchison,
City Attorney
Attachments:
1. Resolution No. 2025-31
2. Draft Acceptance of Donations Policy