1.1 The City of Toronto welcomes mutually beneficial sponsorships that enrich the lives of residents by enhancing City properties and programs.
2.1 The purpose of this policy is to establish a City-wide sponsorship protocol that:
3.1 This policy does not apply to:
3.1.1 Naming rights sponsorships are governed by the City's Corporate and Individual Naming Policy
3.1.2 Philanthropic contributions, gifts, or donations in which no benefits are granted to the third party and where no business relationship exists. These are governed by the City of Toronto Donations Policy.
3.1.3 Grants are exempt from this policy. This includes City grants, incentives, rebates, and in-kind support of external projects where the City provides funds to an outside organization.
3.1.4 Internal sponsorships among the City's divisions, agencies and corporations.
3.2 City Council shall approve any sponsorship which varies from the requirements of this policy.
4.1 Donation
A cash or in-kind contribution to the City, without expectation of benefit or business relationship, and is usually eligible for a tax receipt.
4.2 Naming Rights
A type of sponsorship in which an external partner received the exclusive right to name a City property under specific terms. The naming right is sold or exchanged for cash or other valuable consideration.
4.3 Properties
City assets that may include, but are not limited to, events, services, programs, activities, real property, facilities, intellectual property, parks, features (e.g. rooms, ice pads, bridges, playgrounds, etc.), and other assets, but not including streets and lanes.
4.4 Sponsorships
A mutually beneficial business arrangement wherein an external party, whether for profit or otherwise, provides cash and/or in-kind services to the City in return for commercial advantage. This payback may take the form of publicity, promotional consideration, merchandising opportunities, etc. Because of these marketing benefits, a sponsorship does not qualify for a tax receipt.
4.5 Council-approved Initiatives
Programs, projects, or services that are formally endorsed or funded by City Council through an approved motion, plan, policy or budget. Initiatives may include capital projects, service enhancements, community programs, or other corporate-wide initiatives authorized for implementation by the City’s divisions, agencies, or corporations.
5.1 Divisions may solicit, accept and negotiate sponsorships, subject to this policy.
5.2 Sponsorships may only be accepted to supplement Council-approved initiatives. Sponsorships must be for purposes consistent with the receiving division’s mandate and must be considered to be in the public interest of the City.
5.3 Charitable tax receipts shall be issued only in accordance with the Income Tax Act and the policies of the Canada Revenue Agency.
5.4 The City shall retain ownership and control over any sponsored property.
5.5 Potential sponsors must not be canvassed in a manner that uses or implies coercion. Prospective sponsors that decline solicitations for contributions shall not be penalized.
5.6 Divisions are not required to seek out competing bids when a third party initiates the sponsorship opportunity.
5.7 Benefits to the sponsor are limited to those expressly stated in the sponsorship agreement.
5.8 The City does not endorse the products, services, or ideas of sponsor.
5.9 All sponsorship relationships shall be confirmed in writing or by contract as deemed necessary, as required by Section 7.8 of this policy.
5.10 Since sponsorships are only intended to supplement direct City funding and to enhance City initiatives or properties, a division’s normal funding should not be displaced by the sponsorship arrangement.
5.11 Subject to the agreement, proceeds received from a sponsorship in respect of a property shall be applied to the property.
5.12 In order to expedite partnership development, a formal competitive process is not required when soliciting sponsorship opportunities. While there is no obligation to test the market to maximize the contribution, it is expected that several prospective sponsors will be approached when circumstances warrant.
5.13 Divisions are encouraged to bring forward recurring sponsorships through the budget process. However, for new sponsorships, Division Heads (or their designate) may, without prior Council approval, approve and enter into agreements where:
5.14 The City will consider all sponsorship proposals but has no obligation to accept any of them. The City reserves the right to refuse any proposal, including, but not limited to, those submitted by third parties whose activities are perceived to be incompatible with the City’s goals, values or mission.
5.15 All sponsorship agreements must be arranged for a fixed term.
5.16 Sponsorships cannot confer a real or perceived personal benefit to any City employee or Elected Official or their immediate family members.
5.17 The sponsorship must not create an ongoing financial obligation for the City beyond the term of the agreement.
5.18 Sponsorships shall conform to all applicable federal and provincial statutes, and to all relevant City bylaws, policies and practices, and applicable standards set out by the Canadian Code of Advertising Standards Council.
5.19 The sponsorship must not interfere with existing contractual obligations.
5.20 The sponsorship must not unduly detract from the character, integrity, aesthetic quality or safety of the property or unreasonably interfere with its enjoyment or use.
5.21 The sponsorship must not result in, or be perceived to result in any competitive advantage, benefit or preferential treatment for the sponsor outside of the sponsorship agreement.
5.22 Benefits to the sponsor are to be commensurate with the size and scope of the sponsorship. It is the responsibility of the recipient division to determine the appropriate level or manner of benefits.
6.1 To protect the privacy of Toronto’s residents, sponsors are not to have access to personal information held by the City.
6.2 No form of indemnification will be provided to any sponsor without the express approval of the Legal Services Division.
6.3 Sponsors are prohibited from implying that their products, services or ideas are sanctioned by the City.
6.4 There shall be no actual or implied obligation to purchase the product or services of the sponsor.
6.5 The City will not enter into sponsorship agreements with external parties that are currently in a legal dispute with the City and/or otherwise disqualified from doing business with the City.
7.1 Issues regarding interpretation or application of this policy are to be referred to Strategic Partnerships.
7.2 In accordance with the Councillor Code of Conduct, and the principles and criteria noted in this policy, the solicitation, negotiation and administration of all sponsorships are to be conducted by authorized City staff only. Division Heads have overall responsibility for oversight and control of sponsorship activities. The recipient division is to notify the local Councillor when a sponsorship is being considered. The local councillor is to be advised with respect to sponsorship opportunities that have ward-specific implications.
7.3 All unsolicited sponsorship offers are to be referred to the relevant division either directly or via Strategic Partnerships.
7.4 All new sponsorships must be evaluated for compliance with this policy. Divisions are responsible for ensuring that all sponsors and executed agreements comply with this policy and that staff abide by its provisions.
7.5 As part of its due diligence, prior to proceeding with a sponsorship, the recipient division is responsible for consulting with: the Lobbyist Registrar, relevant stakeholders, where necessary, and for conducting a risk/benefit assessment of the opportunity.
7.6 If a sponsorship offer is not accepted, the proponent shall be advised as to the reason.
7.7 Divisions are responsible for ensuring that any use of the City of Toronto’s name, logo and emblems are in accordance with the Corporate Identity Program.
7.8 All sponsorships require a contract or agreement. The Division receiving the sponsorship will collaborate with Legal Services to determine suitable terms and conditions. as well as for the final review and execution of the contract.
7.9 Copies of all sponsorship agreements are to be stored for audit purposes, in accordance with the City’s normal retention policy.
7.10 Sponsorship agreements, including naming rights agreements, may be made available to the public upon a Freedom of Information request and within the terms of the agreement.
7.11 The terms and conditions that form part of a sponsorship arrangement are to be approved by the Division Head or a designate. If the agreement involves more than one division, approval will be obtained from each Division Head (or designate.)
7.12 Subject to 5.13, it is the responsibility of the recipient Division Head(s) to secure Council approval for all sponsorship arrangements.
7.13 It is the responsibility of the recipient division to review the effectiveness of the sponsorship and to ensure that the respective parties are adhering to the terms of the written agreement.
7.14 For purposes of financial control and accountability, sponsorship funds are to be credited to the appropriate accounts. As part of the quarterly budget variance reports process, where they have not already been accounted for in the budget, each division shall disclose the amount of all sponsorships received to the date and report on how the funds were used.
7.15 Divisions are responsible for providing details of sponsorships to Strategic Partnerships on an annual basis for the purposes of tracking.
7.16 An annual Partnership Report detailing the City’s sponsorship activities will produced by Strategic Partnerships. This report will be accessible to the public, staff, and councillors on the City’s website.
8.1 The City’s Donations Policy
8.2 The City's Policy on Income-Tax Receipts for Cash Donations and Gifts in Kind
8.3 The Code of Conduct for Members of Toronto City Council
8.4 Lobbyist Code of Conduct, Municipal Code Chapter 140, Article VI
8.5 Lobbying and Donations to Council member-Organized Community Events Joint Interpretation Bulletin
8.6 The City’s Unsolicited Proposal Policy
8.7 The City’s Identity Policy
8.8 The City's Advertising Policy