Puslinch councillors were recently faced with a decision as to when a fundraising event is really a fundraiser – or actually a business promotion.
A recent request to waive fees for a private business holding an open house raised a number of questions among councillors on Dec. 5.
The matter stemmed from a request for a private business to hold an open house at the Optimist Recreation Centre.
Councillor Wayne Stokley said he’d been in recent contact with Sharon Richardson of the Inside Edge, which had recently proposed an open house event in early December – to make use of the ice pad and the inside gymnasium as well.
However ice was not available for that date and another date was requested.
Stokley said Richardson asked if council would consider waiving the fees for the gym and ice pad. He said the recommendation of the recreation committee was to offer one hour use of the ice pad and the gymnasium.
“The open house is an opportunity to showcase her program which happens over the course of the winter months,” said Stokley.
He said the intent of any money raised would be a fundraiser which might go to a local group.
Mayor Dennis Lever asked whether the recommendation was for one or two hours. Stokley clarified it would be for one hour of ice time and one hour in the building.
Councillor Susan Fielding suggested any fundraising should come back to the township to cover lost rental fees.
Lever was concerned with setting a precedent wherein if someone (or a business) is holding a fundraiser “which in essence promotes their own business, but offers to make a donation, we’d be giving away the facility for free.”
Councillor Jerry Schmidt agreed. “I don’t think the money is the issue,” he said.
Lever asked clerk Brenda Law if the township had dealt with similar issues in the past. Law’s response was no. She explained the difference with a recent Zumba event held at the ORC was that funds raised went to the Heart and Stroke Foundation.
Stokley agreed that in a sense it also advertised the program offered by the individual. He said the reason he’d brought the matter up is the township is trying to make more people aware of the facilities offered.
“I’m not suggesting we continue doing this (on an ongoing basis), but the facilities are not being booked as much as I think we’d like to see,” he said.
He added if the public can see the benefits of the local facility, “it will benefit the township in the long run.” He said the programs are for the benefit of the residents.
Councillor Ken Roth believed that in this instance the open house is to promote the local business.
“She is going to profit from it, so I am not sure we should be giving it away for free,” said Roth.
Lever said it did not sound like their was a lot of support for waiving the fees.
Stokley said when the issue was discussed at the recreation committee, the recommendation was to allow the use for free.
Lever said the difference with other events was that this was promoting a business. He noted that in the past council has donated use of the centre for charitable events.
Law said that when the event is for someone who is a long-term user, it is a promotion of the business.
Council defeated a motion to grant the time requested and to waive the fees for the two-hour time frame.
