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05-011 Town Grants Program Policy_2024TOWN GRANTS PROGRAM POLICY PAGE 1 OF 7 FINANCE AND ACCOUNTING Policy 5-011 - Town Grants Program Policy Approval Date: December 9, 2024 Approval Authority: Council, By-Law 2024-128 Effective Date: January 1, 2025 Next Review Date: 2029 Department: Finance Last reviewed: 2024 Revision Date/s: Schedules: 1.0 Purpose 1.1 To establish a governance framework for disbursement of grant funds requests from local non- profit organizations. 2.0 Policy Statement 2.1 The Town of Tillsonburg recognizes that non-profit organizations offer important community services that align with the Town’s Strategic Plan. To encourage eligible non-profit organizations to support the Town’s Strategic Plan, the Town may offer financial assistance in the form of a Grant to assist with operating costs or event costs. 2.2 Subject to budget approval, the Town may provide direct Grants to non-profit organizations that include: a) Promoting Community Vitality – community health, safety and wellbeing; b) Enhancing Environmental Sustainability – initiatives that support community members and stakeholders in embracing sustainable options, including education and awareness initiatives; c) Fostering Progressive Government – assess and continually explore opportunities to establish effective and efficient service delivery levels and models, considering expected growth and community needs. TOWN GRANTS PROGRAM POLICY PAGE 2 OF 7 3.0 Definitions “Application Process” – refers to the application-based process managed by the Town and reviewed by the Town’s Grant Approval Committee to determine and recommend Grant funding to Eligible Organizations. “Community Event” – means a no cost or low cost event primarily designed and delivered for the general population or that promotes the development of a stronger community in The Town of Tillsonburg. “Conflict of Interest” – means a situation when an individual’s personal interests (what they or their close family members could gain financially or otherwise) conflicts or appears to conflict with their duty to administer the Grant funds in a transparent manner and in accordance with the Funding Agreement. “Council” – means the Mayor and Councillors of the Town of Tillsonburg. “Criteria” - used to evaluate Grant applications based on how the organization's initiative will benefit the community (scale, inclusivity, direct and indirect benefits), soundness of business plan (including resources, own funds, and fundraising), the importance of the Town's contribution, and how the success of the initiative will be determined. “Eligible Organizations” – means a non-profit organization with operations in the Town of Tillsonburg or in Oxford County and serves the Town of Tillsonburg. “Essential Services” – means a service considered critical to preserving life, health, public safety and basic societal functioning. “Final Report” – means the summary report of the project or program of the organization, which received Grant funding from the Town. “Financial Statements” – means financial reports prepared in accordance with Canadian Generally Accepted Accounting Principles (GAAP), or in a format otherwise specified by the Town. “Funding Agreement” - means a written document constituting an agreement between the Town and a grant Recipient setting out the obligations or understandings of both with respect to Grant payments. “Grant” – means a conditional financial assistance mechanism through which money and/or direct assistance is provided to carry out approved activities. “Grant Approval Committee” – means the committee with the authority to evaluate and approve Grant allocations based on Council’s Grant funding approval in accordance with this Policy. Members of the Committee include the Chief Administrator Officer (CAO) and Treasurer, and may include additional staff resources, as required. TOWN GRANTS PROGRAM POLICY PAGE 3 OF 7 “Non-Profit” – means associations, clubs, or societies that are organized and operate exclusively for social welfare, civic improvement, recreation, or any other purpose except to generate a profit. “Recipient” – means a Non-Profit organization that will receive Grant funding. “Town” – means the municipal corporation of the Town of Tillsonburg. “Town Treasurer” – means the Director of Finance/Treasurer of the Town. “Treasurer’s Report” – means a report by the treasurer of the Non-Profit organization that accounts for all of the financial transactions of that organization. 4.0 Responsibilities 4.1 Council a) As per Section 107 of the Municipal Act, 2001, Council has the authority to provide grants for any purpose considered to be in the interest of the municipality; b) Council may provide annual or multi-year funding by way of Grants; c) Council may approve Grant funding as part of the annual budget process. 4.2 Finance Department a) Responsible for establishing procedures for the implementation of this Policy, which are consistent with the guiding principles for ensuring compliance with this Policy and related Funding Agreements. b) Responsible to prepare, communicate, distribute and facilitate the annual Application Process; c) Responsible to accept and review applications for Grants on an annual basis, determine completeness and forward the applications to Grant Approval Committee for review, deliberation and decision. d) Responsible to ensure the terms and conditions of Funding Agreements are met. 4.3 Applicant a) Responsible for the accurate completion of the application form within the application deadline and submitting any supplementary information, if required. b) Successful applicants who receive Grant funding from the program must report on how the funding was spent and the impact the funding achieved. 5.0 Guiding Principles 5.1 The Grants Program Policy is guided by the Town’s Strategic Plan to inform decision-making and administration of the Grant program with a Vision “to grow a vibrant and engaged community built on partnerships and entrepreneurial spirit”, TOWN GRANTS PROGRAM POLICY PAGE 4 OF 7 with a Mission to “strive for excellence in local government by providing efficient and effective municipal services, facilitating partnerships, attracting and supporting businesses, promoting local heritage and identity, advancing the community as a regional centre and demonstrating results to the community.” 5.2 Grants are available to Eligible Organizations based in The Town of Tillsonburg. 5.3 Non-resident, Eligible Organizations may be considered for Grant funding, but only if it directly benefits the residents of the Town of Tillsonburg. 5.4 The amount of Grant funding available to Eligible Organizations is subject to Council’s annual budget approval. 5.5 The Grant shall pertain only to the calendar year for which it was approved, unless a multi-year agreement is recommended by the Grant Approval Committee and approved by Council. 5.6 Multi-year agreements, up to three-year terms, are considered for organizations delivering a strategic service for residents of The Town of Tillsonburg. 5.7 Grant requests that meet the established criteria are not guaranteed approval for funding. Applicants may receive full, partial or no Grant funding. 5.8 All Grant applications are reviewed for completeness and eligibility. Applications in compliance with this Policy will then be considered by the Grant Approval Committee. 5.9 There is no appeal process for decisions of the Grant Approval Committee regarding Grant applications. 5.10 Grants awarded will be published on the Town’s budget report approved by Council. 6.0 Funding Conditions 6.1 Annually, the Town will have an intake period to receive applications for Grant funding. 6.2 No funding will be provided to an organization without a completed application form with proof of current registration as a Non-Profit organization. 6.3 An application must include a copy of the most recent Financial Statements or Treasurer’s Report. 6.4 All Eligible Organizations approved for funding will be required to enter into a Funding Agreement with the Town prior to receiving Grant funds. 6.5 The Eligible Organization shall repay any Grant funded surplus. 6.6 Approval of funding in one year does not guarantee funding in subsequent years, unless otherwise approved. Should an Eligible Organization require additional Grant funding in the future, a new funding application would need to be submitted. The Grant Approval Committee may consider, in unique circumstances, multi-year funding approval. TOWN GRANTS PROGRAM POLICY PAGE 5 OF 7 6.7 Grant amounts of $10,000 or less will be paid to the Recipient as a one-time payment. 6.8 Grant amounts of greater than $10,000 will be paid in quarterly payments, unless otherwise negotiated. 6.9 The Grant funding shall only be used for the purpose approved by the Grant Approval Committee. The Recipient must request written approval for any proposed material changes to the project prior to implementation. If the change of scope is not acceptable, the Recipient will submit a cheque payable to the Town for the remaining unexpended funds within thirty (30) days. 6.10 The Recipient of Grant funds must acknowledge the Town of Tillsonburg as a funder in any print, electronic, visual, or audio marketing related to the initiative, subject to review and approval by the Town’s Communications staff. 6.11 The Recipient must complete a Final Report and provide supporting documents and financial statements to the satisfaction of the Town. 6.12 Financial reporting must be completed and submitted by March 15 of the following year, unless an extension of the reporting date has been approved. Failure to meet the reporting requirements will affect future requests for Grant funding. 7.0 Eligible Organizations and Expenses 7.1 The Town provides Grant funding to Eligible Organizations for programs or community events that support one or more of the following priority areas: a) enhances the quality of life by providing programs, projects, and events that address social issues; b) creates equitable access to human, social, and economic resources and services; c) supports community collaborations, involving multiple non-profit organizations, in addressing broader human or social issues; d) supports the promotion, protection, and preservation of arts, culture and human or natural heritage; e) offers opportunities to develop knowledge and skills in arts and heritage; f) improves the environment, protect and preserve natural habitats, and improve open spaces and make nature accessible; g) community events that encourage social cohesion and community building; or h) furthers the social, economic and environmental well-being of local residents and non-profit organizations. 7.2 Eligible expenses include but are not limited to the following: a) materials and supplies; b) costs of services and equipment; TOWN GRANTS PROGRAM POLICY PAGE 6 OF 7 c) research and documentation; d) outreach and engagement activities; e) public program production; f) advertising and promotions; g) information and referral services; h) salary or wage costs specifically related to the program or project; i) contract and professional service; j) project design and delivery; k) venue and equipment rental; l) facility costs where additional space is required for the initiative. The existing space of the applicant is not eligible. 8.0 Exclusions 8.1 The following Non-Profit organizations are not eligible for funding: a) non-profit organizations whose primary purpose is to: i provide funding to other organizations, community groups, or projects; ii provide support to professional associations or colleges; or iii earn profits for itself, its shareholders, or its members; b) non-profit organizations that have overdue or incomplete accounting/reporting relating to any Grant previously awarded by the Town; c) non-Profit organizations that do not have registered status; d) non-profit organizations that have not been operating for one full year; and individuals. 8.2 Ineligible expenses may include but are not limited to the following: a) expenditures incurred to support private or commercial sector projects or programs; b) programs with restricted or extremely limited public access; c) expenditures incurred to support definable political viewpoints and/or seek to attract only a special interest audience or recruit new members; d) expenditures incurred to support events whose primary function is fundraising; e) initiatives related to religious observance; f) hospitals, or medical treatment programs; g) expenditures related to any gaming activity; TOWN GRANTS PROGRAM POLICY PAGE 7 OF 7 h) debt retirement or deficit reduction; i) lease and license agreements; j) endowment funds; k) capital or facility improvements, upgrades, renovations, construction; l) vehicles, equipment and furnishings; m) land or facility purchase; n) scholarships, gratuities and payments for individual benefit; o) expenditures incurred prior to application deadline; p) initiatives that do not provide a community benefit; q) events or programs outside of the Town; r) time and labour provided towards preparation of funding applications, committee planning meetings, and fundraising; s) donor recognition/walls, gifts, gift cards, prizes, awards, honorariums, and alcohol; t) expenditures for time and labour provided towards ground breaking, opening, and other ceremonial events; or u) moving expenditures. 8.3 Review of Grants Program Policy a) This Policy shall be reviewed to align with updates to the Town’s Strategic Plan or sooner if required.