AIRPORT SPONSORSHIP POLICY

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1 AIRPORT SPONSORSHIP POLICY The Muskegon County Airport (MKG) Sponsorship policy (Policy) is intended to ensure Airport sponsorships are coordinated and aligned with its business goals, maximize opportunity for corporate visibility, foster long-term relationships, are within the airport s sponsorship budget, and are consistent with FAA Policy and Procedures Concerning the Use of Airport Revenue (Attachment A). This Policy provides general information and guidelines for airport staff and those seeking sponsorship. The intent of this Policy is to enhance the Airport s community involvement by supporting non-profit organizations, as well as other groups within the airport s commercial service area, by contributing donations on behalf of the Airport to events that have a bona fide benefit to the marketing and support of the airport to include air service development and economic development. This Policy will cover three (3) areas of sponsorship and contributions to ensure MKG maintains compliance with federal regulations regarding the use of airport revenue. 1. Sponsorship by monetary donation. 2. Sponsorship by promotional material donation. 3. Sponsorship by collaborating with a Commercial Airline. I. STATEMENT OF PURPOSE It is the mission of the Muskegon County Airport to be the preeminent source of air travel to the Western Michigan Lakeshore region by providing quality services and competitive fares in a safe, secure environment. Further, it is our duty to provide a cost effective, full-service airport facility, which will enhance the economic well-being and quality of life in the region and establish MKG as one of the premiere small commercial airport facilities in the Country. II. PRIOR BUSINESS PRACTICES This Policy supersedes and replaces all prior MKG policies, practices, and guidelines in regards to sponsorships and charitable contributions. III. DEFINITION For the purpose of this Policy, a sponsorship is an agreement between the County of Muskegon and a group or organization promoting an event for the support of community activities, participation in community events, or in support of community-purpose uses of MKG s property if such expenditures are directly and substantially related to the operation of the Airport or its services. In accordance with the agreement, MKG provides funds, resources or services and in return for its sponsorship investment, receives rights and associations that will increase MKG s visibility, foster long-term relationships and promote commercial airline services or other services. The agreement EFF: Page 1 of 6

2 does not have to be in the form of a formal contract, but can include, for example, a letter outlining the terms of the sponsorship and a written application. IV. GUIDELINES MKG may enter into sponsorship agreements provided the agreement is aligned with its business goals and objectives, applicable County policies, applicable Federal or State guidelines, and are within its annual operating budget. The sponsorship agreement must provide an opportunity to promote and increase MKG s corporate visibility, foster long-term relationships, or promote air service opportunities. A. GENERAL PRINCIPLES Sponsorships must conform and meet the following general principles: 1. The focus of MKG s sponsorships shall be local community-related activities and education. Sponsorships may be coordinated with employee volunteer opportunities to achieve maximum impact within budget guidelines. 2. All sponsorships shall promote MKG s business goals, create positive visibility, and meet the principles and guidelines of this Policy. 3. Sponsorships must be of mutual benefit to both parties. 4. Sponsorships shall go directly to a qualifying non-profit agency. Sponsorships shall not be executed with organizations representing non-profit agencies. 5. Sponsorships must be with individuals, businesses, and/or organizations whose value and practices are not in conflict with County policies and practices. 6. Sponsorships shall not be regarded by any entity as an entitlement or as a means of gaining favorable terms from the County. 7. The filing of an application does not guarantee that a Sponsorship will be provided. 8. Financial contribution solicitations that do not include a value in-kind type of sponsorship will not be considered for a sponsorship (i.e. non-profit conducts a fundraiser and requests a dollar amount donation only). B. PROHIBITED SPONSORSHIPS The following exclusions apply to sponsorships: 1. MKG shall not make charitable contributions or donations. 2. MKG shall not support individuals, businesses, or organizations that discriminate based on age, sex, race, religion, national origin, disability, or any other protected classes. 3. MKG shall not participate in or sponsor any event that promotes a particular religion, religious organizations, events, or programs. Community events or programs sponsored by several organizations, some of which are religious organizations, may be considered as long as the purpose is not to promote a particular religion or religious organizations. 4. MKG shall not participate in or sponsor not-for-profit sports teams, this includes youth sport organizations such as Little League, American Legion, etc. 5. MKG shall not support or participate in requests that solicit financial support for individuals, businesses, or organizations for political candidates, political issues, causes, and/or political campaigns. 6. MKG shall not support or participate in requests that do not provide a benefit to MKG as stated and defined in this policy. EFF: Page 2 of 6

3 7. MKG shall not participate in funding any activity that could be considered a violation of the Rules and Regulations of the Federal Aviation Administration (FAA) regarding the use of revenue and revenue diversion (See Attachment A). C. MONETARY DONATION, CONTRIBUTION, OR SPONSORSHIP BUDGET APPROVAL Sponsorship request forms must be filled out completely and submitted with all supporting documentation in order to be considered. Request forms must include evidence of current Section 501(c) (3) tax status. All sponsorships must be included in the MKG budget and must be received a minimum of ninety-(90) days, or sooner, prior to the sponsored event date. Once the annual budget amount has been approved, no additional donations, contributions, or sponsorships shall be awarded without authorization from the Airport Manager. Successful applicants will be required to file a written report of the sponsorship event to include attendee participation data within three months of the event date. This information will be used to assist the airport in determining the benefit of the sponsorship and assist in future fiscal year budget development. D. MONETARY DONATION, CONTRIBUTION, OR SPONSORSHIP APPROVAL PROCESS All sponsorships must follow the following process: 1. Requests: All sponsorship requests shall be coordinated and administered by the Airport. Individuals and/or organizations seeking sponsorship funding shall furnish the Airport with a fully completed MKG Sponsorship Request Form to include a summary detailing the event, the expected benefits to MKG, and County-required documentation. 2. Due Diligence: MKG shall perform its due diligence review of each sponsorship request as follows: a. Ensure that potential sponsor is not in legal or financial conflict with the County. b. Ensure that the potential sponsor satisfies the general principles of this Policy. c. Ensure that the potential sponsor is not excluded under this Policy. d. Ensure that there is no duplication of sponsors, events, uses, or purposes. 3. Approval: If due diligence indicates potential sponsor is acceptable and meets the County s business practices, the Airport Manager will approve the sponsorship funding and complete the sponsorship application authorizing sponsorship. This statement will include the following information: a. Legal name, address and contact person(s) of the organization. b. Tax ID number of the organization and evidence of current Section 501 (c) (3) tax status. c. Total amount of funds or description of services to be contributed by MKG. d. Fiscal year in which funds are to be spent. e. State how sponsorship aligns with MKG objectives as stated in this Policy, the branding opportunities for MKG, or the ability to foster long-term business relationships. f. Provide a copy of the completed Sponsorship Request Form to the Airport. Funds will not be disbursed until the signed statement authorizing sponsorships and all required documentation is received. EFF: Page 3 of 6

4 4. Contract: MKG shall have a written contract or agreement with the soliciting organization executed and in place prior to any activity connected with the sponsorship. The agreement shall specifically state the contribution made by MKG and the benefits received for the sponsorship. A copy of the agreement shall be provided to the County Finance Department along with pertinent financial information in order to process payment. The individual/organization shall provide MKG documentation of the contribution for audit and tax purposes. 5. Communication with Soliciting Organization: All organizations seeking a MKG sponsorship shall communicate directly with the Airport. The Airport shall advise all inquiring individuals/organizations of approval and/or disapproval of their requests. The Airport shall communicate directly with individuals/organizations regarding approved requests and coordinate any collateral activities or materials such as ads, tickets, invitations, banners volunteers, etc. 6. Sponsorship Limit: Sponsorships to any organization shall not exceed $1,000.00, in a fiscal year unless otherwise authorized and approved by the Airport Manager. 7. Marketing and Media Relations: a. The organization shall work with the Airport to approve all use of County/Airport logos and other branding. b. The Airport must approve any promotional materials, signs, etc. that will carry the Airport logo or brand. E. PROMOTIONAL MATERIAL DONATION/ CONTRIBUTION APPROVAL PROCESS All Promotional Material Requests shall follow the process set forth above; however, the maximum amount shall not exceed $ during the fiscal year. F. PARTNERSHIPS WITH COMMERCIAL AIRLINES & AVIATION RELATED ENTITIES MKG may participate and/or collaborate with any local non-profit organization in conjunction with a Commercial Airline or aviation business to produce a charitable event. The charitable event must be in need of airport participation due to the location of the event or need for a participating aircraft or equipment. G. AUTHORITY AND INTERPRETATION. The Airport is responsible for the official interpretation of this Policy. Questions regarding the application of this Policy should be directed to the Airport Manager. MKG reserves the right to revise this Policy at any time with or without notice. EFF: Page 4 of 6

5 Attachment A - Federal Revenue Use Regulations: 49 USC 47107(b) and 47133; B Appendix E 15.9 Permitted Uses of Airport Revenue 15.9.b. Promotion of the Airport. Sponsors may use their airport revenue to promote public and industry awareness of the airport's facilities and services. Airport revenue may be used to promote new air service and competition at the airport, but it may not directly subsidize air carrier operations. A sponsor may use its revenue to pay the salary and expenses of airport or sponsor employees engaged in efforts to promote air service at the airport. The sponsor may participate in cooperative advertising where the airport advertises new services with or without matching funds. The name of the airport must be prominently featured in the marketing and promotional material. The sponsor may pay a share of promotional expenses designed to increase use of the airport. The promotion must include specific information about the airport. In addition, the sponsor may support promotional events, such as a Super Bowl hospitality tent for corporate aircraft at a sponsor-owned general aircraft terminal. The sponsor may use airport revenue to pay for promotional items bearing airport logos distributed at various aviation industry events. The Revenue Use Policy does not prohibit a sponsor from spending airport revenue from one airport for promotion of another within that sponsor s airport system h. Community Activities. A sponsor may use airport revenue to support community activities and to participate in community events if such expenditures are directly and substantially related to the operation of the airport. For example, it may purchase tickets for an annual community luncheon at which the airport director delivers a speech reviewing the state of the airport. The airport may also contribute to a golf tournament sponsored by a friends of the airport committee. The FAA also recognizes that contributions for community or charitable purposes can provide a direct benefit to the airport through enhanced community acceptance and that a benefit of that nature is intangible and not quantifiable. Consequently, where the amount of contribution is minimal, the FAA will not question the value of the benefit so long as there is a reasonable connection between the recipient organization and the benefit of local community acceptance for the airport. An example of a permitted expenditure in this category is a $250 fee for a booth focusing on the operation of the airport and career opportunities in aviation at a local school fair. An airport may use its revenue to support a community's use of airport property if the expenditures are directly and substantially related to the operation of the airport Prohibited Uses of Airport Revenue e. Market and Promotion. When unrelated to airport operations, marketing and promotion costs are prohibited uses of airport revenue. Examples include participating financially in marketing as destinations city or regional attractions such as hotels, convention centers, sports arena, theaters, and other entertainment attractions having no connection to the promotion of the airport l. Community Activities. Using airport funds to support community activities and to participate in community events or using airport property for community purposes except to the extent permitted under the Revenue Use Policy is a prohibited use of airport revenue. EFF: Page 5 of 6

6 Attachment B - Airport Sponsorship & Materials Request Form Contact Information Contact Name: Contact Organizations Information Organization Name: Type of Organization: Contact Phone Number: Organization Website: Organization s Mission: Event Information Event Name: Event Location: Event Date(s): Event Times: Estimated Attendance: Estimated Number of Attendees from outside the region: (attendees who may need to travel to the event by air) Level of Sponsorship Funding Requested: Airport Marketing & Promotional Materials Requested: How will the support of Muskegon County Airport aid in your organization s mission? What promotional exposure will MKG receive from this sponsorship? ** In addition to this application please attach documentation detailing the event as well as what is expected from airport staff; level of branding opportunities for the airport, the opportunity to foster long-term business and/or community relationships and/or the promotion of air travel** For Airport Use Only: Admin Analyst: Date: Airport Manager: Date: APPROVED NOT APPROVED State how this sponsorship aligns with the airport sponsorship policy. If not approved, reason for disapproval: For Accounting: Organization s Legal Name: Organization Billing Address: Organization Tax ID: Department GL Code: Total Approved: EFF: Page 6 of 6

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