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 applies to:
3.1.1 Sponsorship arrangements wherein a third party provides financial or in-kind services to the City in return for commercial advantage, promotional consideration or other benefits;
3.1.2 City divisions, agencies or corporations that are involved with the solicitation, review, management, and stewardship of prospective and current sponsors; and
3.1.3 Sponsorship arrangements involving City programs, initiatives, events, services, facilities, or other City assets.
3.2 The policy does not apply to:
3.2.1 Naming rights sponsorships governed by the "City of Toronto Individual and Corporate Naming Rights Policy";
3.2.2 Philanthropic contributions, gifts, or donations governed by the “City of Toronto Donation Policy”;
3.2.3 Grants, incentives, rebates, or in-kind support provided by the City to an external organization; and
3.2.4 Sponsorships between the City’s divisions, agencies and corporations.
3.3 City Council shall approve any sponsorship which varies from the requirements of this policy.
4.1 Naming Rights
A type of sponsorship in which an external partner receives the exclusive right to name a City Property in exchange for cash or other valuable consideration.
4.2 Properties
Properties are City assets, whether intangible or real, including, without limitation, intangible assets such as events, services, programs, activities, and intellectual property, and real property such as facilities, parks, and physical features (for example, rooms, ice pads, bridges, and playgrounds).
4.3 Sponsor
An individual or organization that provides a cash, in-kind, or other contribution to the City in exchange for an agreed benefit.
4.4 Sponsorships
A mutually beneficial arrangement wherein a third party provides cash, in-kind, or other contributions to the City in exchange for an agreed benefit, including, without limitation, recognition, publicity, advertising, promotional rights, merchandising or other agreed-upon benefits.
4.5 Sponsorship Agreement
A written, legally binding contract between the City and a Sponsor that sets out the terms, conditions, responsibilities, benefits, and obligations of both parties with respect to a Sponsorship. A Sponsorship Agreement may take the form of a memorandum of understanding, letter of agreement, contract, or other written instrument approved by Legal Services, and reflects the requirements of this Policy.
The following principles should guide the City’s approach to sponsorships:
5.1.1 Divisions may solicit, accept and negotiate a Sponsorship in accordance with this policy.
5.1.2 Sponsorships are intended to supplement direct City funding and to enhance City Assets, including without limitation, programs, services, initiatives, and City-owned real property. A division’s normal funding should not be displaced as a result of a Sponsorship arrangement.
5.1.3 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.
5.1.4 Divisions are not required to seek out competing bids when a third party initiates a Sponsorship opportunity and are exempt from the Unsolicited Proposal Policy.
5.1.5 Divisions are encouraged to bring forward recurring sponsorships through the budget process.
5.1.6 The City shall not endorse the products, services, or ideas of any sponsor.
The following requirements apply to all Sponsorships:
5.2.1 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.
5.2.2 In accordance with the Income Tax Act and the policies of the Canada Revenue Agency, charitable tax receipts are not issued for Sponsorships.
5.2.3 The City shall retain ownership and control over any sponsored Property.
5.2.4 Prospective Sponsors must not be solicited in a manner that uses or implies coercion. Likewise, prospective Sponsors shall engage with the City in good faith and without exerting undue influence. A prospective Sponsor that declines a solicitation for a contribution shall not be penalized, and the decision to decline shall not result in adverse treatment by either party.
5.2.5 All Sponsorship arrangements require a written agreement or contract, or such other form of documentation as may be required pursuant to Section 6.9 of this policy.
5.2.6 Benefits to the sponsor are limited to those expressly stated in the Sponsorship Agreement.
5.2.7 Subject to the terms of the Sponsorship Agreement, proceeds received from a Sponsorship in respect of a Property shall be applied to the Property.
5.3.1 For new sponsorships, Division Heads (or their designate) may, without prior Council approval, approve and enter into Sponsorship Agreements if:
5.3.2 Any Sponsorship that varies from the requirements of this policy shall require approval by City Council.
5.4.1 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.
5.4.2 Sponsorships shall be for a fixed term.
5.4.3 Sponsorships shall not confer a real or perceived personal benefit to a City employee, elected official or an immediate family member of the same.
5.4.4 Sponsorships shall not create an ongoing financial obligation or a continuing non-financial obligation for the City beyond the term of the Sponsorship, including commitments related to staffing, operations, maintenance, service levels, branding, recognition, exclusivity, access or use of City Property.
5.4.5 Sponsorships shall conform to all applicable federal and provincial statutes, as well as all relevant City bylaws, policies, and practices.
5.4.6 Sponsorships shall not interfere with existing contractual obligations.
5.4.7 Sponsorships must not unduly detract from the character, integrity, aesthetic quality or safety of the Property, whether tangible or intangible, or unreasonably interfere with its enjoyment or use.
5.4.8 Sponsorships shall not result in, or be perceived to result in, any unfair competitive advantage or preferential treatment for the Sponsor beyond what is outlined in the Sponsorship Agreement.
5.4.9 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.
5.5.1 The City shall not enter into Sponsorship Agreements with external parties that are currently in a legal dispute with the City and/or are otherwise disqualified from doing business with the City.
5.5.2 The City shall not provide any form of indemnification to any sponsor without the express approval of the Legal Services Division.
5.5.3 Sponsorships shall not create any actual or implied obligation for the City to purchase or otherwise procure the products or services of a Sponsor.
5.5.4 Sponsors shall not have access to personal information held by the City.
5.5.5 Sponsors shall not imply that their products, services or ideas are sanctioned by the City.
6.1 Strategic Partnerships is responsible for issues regarding the interpretation or application of this policy.
6.2 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.
6.3 The recipient division is to notify the local councillor when a sponsorship is being considered, and all local councillors are to be advised with respect to sponsorship opportunities that have ward-specific implications.
6.4 All unsolicited sponsorship offers are to be referred to the relevant division either directly or via Strategic Partnerships.
6.5 Divisions must evaluate all new sponsorships for compliance with this policy. Divisions are responsible for ensuring that all sponsors and executed Sponsorship Agreements comply with this policy and that staff abide by its provisions.
6.6 As part of its due diligence, prior to proceeding with a sponsorship, the recipient division is responsible for consulting with the Lobbyist Register and, where necessary, relevant stakeholders, and for conducting a risk/benefit assessment of the opportunity.
6.7 If a sponsorship offer is not accepted, the division shall advise the proponent as to the reason.
6.8 Divisions are responsible for ensuring that any use of the City of Toronto’s name, logo and emblems is in accordance with the Corporate Identity Program (CIP).
6.9 Sponsorships require a written agreement or contract. 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.
6.10 Divisions are responsible for storing copies of all Sponsorship Agreements for audit purposes in accordance with the City’s normal retention policy.
6.11 Sponsorship Agreements may be made available to the public upon a Freedom of Information request and within the terms of the agreement or contract.
6.12 The terms and conditions of any Sponsorship Agreements must be approved by the Division Head or a designate. Where a Sponsorship Agreement involves more than one division, approval must be obtained from the Division Head or designate of each involved Division.
6.13 Subject to 5.3.1, it is the responsibility of the recipient Division Head(s) to secure Council approval for all Sponsorship Agreements.
6.14 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.
6.15 For purposes of financial control and accountability, sponsorship funds are to be credited to the appropriate accounts. As part of the quarterly budget variance reporting process, where they have not already been accounted for in the budget, each division shall disclose the amount of all sponsorships received to date and report on how the funds were used.
6.16 Divisions are responsible for providing details of sponsorships to Strategic Partnerships on an annual basis for the purposes of tracking.
6.17 An annual partnership report summarizing the City’s sponsorship activities will be produced by Strategic Partnerships. This report will be accessible to the public, staff, and councillors on the City’s website.
7.1 The City of Toronto Donations Policy
7.2 The City of Toronto Individual and Corporate Naming Rights Policy
7.3 The City of Toronto's Policy on Income-Tax Receipts for Cash Donations and Gifts in Kind (can be found in Policy & Finance Committee Report 11(3), adopted Dec 14, 15 and 16, 1999)
7.4 The Code of Conduct for Members of Toronto City Council
7.5 Lobbyist Code of Conduct, Municipal Code Chapter 140, Article VI
7.6 Lobbying and Donations to Council member-Organized Community Events Joint Interpretation Bulletin
7.7 The City of Toronto Unsolicited Proposal Policy
7.7 The City of Toronto Corporate Identity Policy
7.8 The City of Toronto Advertising Policy