CCP014 nonprofit agreeCITY OF SAN JUAN CAPISTRANO
COUNCIL POLICY
Subject: Effective Policy
Page Date Number
NONPROFIT PUBLIC BENEFIT
CORPORATIONS 1 of 1 2/5/02 014
This policy is hereby created as a means to ensure that non-profit public benefit
corporations that enter into, and maintain, any agreements or relationships, with the City of
San Juan Capistrano, where the City provides a direct subsidy, or leases property at no
rent or minimal rent levels to the non-profit organization, are not organized for the private
gain of any person. The subject organization must be a non-profit organization with
headquarters or a branch office located within the City of San Juan Capistrano.
The subject organization must:
1. Be organized under the Nonprofit Public Benefit Corporation Law for charitable
purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code.
2. Not carry on any other activities not permitted to be carried on by a corporation
exempt from federal income tax under Section 501(c)(3) of the Internal Revenue
Code.
3. Not dedicate any part of its net income or assets to the benefit of any director,
officer or member of said corporation or to the benefit of any private person.
4. Submit a semi-annual report describing how the agreed upon services or programs
were rendered during the performance reporting period. The report must include:
1. Number of citizens receiving benefits;
2. The city of residence of citizens receiving benefits;
3. Proof of the organization’s continued nonprofit status;
4. Disclosure of all activities the organization has conducted on City property, or
with City funds;
5. An account of organization’s performance as established in agreement with
the City. Such performance measurement standards shall be negotiated at
the time agreement is entered into, and reflected in said agreement. The
agreement shall also identify to whom the report is to be addressed and
establish the dates when it is due to the City.
6. Information on the total revenue received by the organization during the
reporting period and disclosure of the sources of that revenue.
Failure to submit to the City the required performance reports shall make the organization
ineligible for a continued financial relationship, agreement, etc. with the City of San Juan
Capistrano.
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