FROM:
Development Services
SUBJECT:
Title
Accept and Allocate the Donations from Stage Red Fontana Youth Music Foundation Inaugural Fundraising Event
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RECOMMENDATION:
Recommendation
1. Authorize the Community Foundation to accept and allocate donations on behalf of The Stage Red Fontana Youth Music Foundation, specifically $45,000 for the event, $12,000 Grammy Scholarships, $6,000 for Grammy in Schools program, and $15,000 for Kaiser High School Marching Band Equipment.
2. Authorize the City Manager to execute all necessary documents associated with the fiscal sponsorship and administrative operations.
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COUNCIL GOALS:
• Promote economic development by pursuing business attraction, retention, and expansion.
• Operate in a businesslike manner by creating a memorable customer experience with every interaction.
DISCUSSION:
The Stage Red Fontana Youth Music Foundation (SR Foundation) is dedicated to empowering young people through music by funding instruments, resources, and educational opportunities for students across the Fontana community. This is consistent with the Fontana Community Foundation’s purpose to aide and assist in the implementation, improvement, and maintenance of public services that preserve and promote the health and welfare and education of local citizenry of the City of Fontana. Each year, the SR Foundation will honor individuals who inspire through their dedication to music and service, ensuring that the transformative power of music continues to thrive in Fontana for generations to come.
On October 29, 2025, Stage Red will host the inaugural fundraising gala to commemorate the establishment of the SR Foundation. Founded by music legends with deep roots in the community-Sammy Hagar and Jay Buchanan-the foundation is dedicated to supporting music education for future generations.
The newly formed SR Foundation is currently processing applications to receive IRS approval for status as a non-profit. It is important that donors to the SR Foundation event can receive full and appropriate tax benefits for their donations, which require that donations are made to a fully approved and legally formed non-profit organization. For this reason, staff has proposed that the Fontana Community Foundation (Fontana Foundation), a recognized and duly formed 501.C.3 corporation, act as the fiscal sponsor to receive all donations on behalf of the SR Foundation, enabling donors to receive appropriate tax benefits for their donations.
Expenses for the event will be paid directly From the Fontana Community Foundation, using proceeds donated for the event. It is currently anticipated that the gross contributed revenue for this event will exceed $125,000.
Anticipated expenses for the event are estimated at $45,000, which include the cost of food and beverage service, production coordination for the artists and various marketing materials related to the event. In addition, based on anticipated available revenue, three contributions to third party entities will be made after the event. Those expenses include: sponsoring two Fontana music arts high school students to attend the Grammy Camp in Los Angeles at an anticipated cost of up to $12,000, subject to approval by a Fontana school district, funding a “Grammy in the Schools” event in Fontana where up to 120 Fontana students can attend a “Grammy in the schools” program, hosted here in Fontana at a cost of $6,000, and lastly, a contribution in the amount of $15,000 for the specific purposes of acquiring new band equipment for the Kaiser High School Marching Band.
This action includes approval for the City Manager to process payment for the above items and other general expenses required by, or incurred for the event, using only funds that were received by attendees and sponsors of the event. Funds raised for the Fontana Community Foundation through other donation and fundraising efforts will not be pledged, committed, or utilized for this event.
Invoices were distributed to attendees and sponsors on October 16, 2025. Staff has received more than $15,000.00 to date in contributions and anticipates receiving nearly all of the committed contributions on or before the event on October 29, 2025. Funds received in excess of expenses for the event will remain in the account of the Fontana Community Foundation until the non-profit status for the SR Foundation is approved. After approval of the SR Foundation’s non-profit status, staff will present a final disbursement request for any remaining available event donated funds to the SR Foundation, which is currently anticipated to occur in early 2026.
FISCAL IMPACT:
The donations from the fundraising event and operating expenses will be included in the Community Foundation Org. 29910200. Any necessary budget adjustments will be included in the next Quarterly Budget Report.
MOTION:
Approve staff recommendation.