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STATE OF MINNESOTA a OFFICE OF THE STATE AUDITOR SUITE 500 525 PARK STREET (651)296-2551(Voice) (651)2964755(Fax) REBECCA OTTO SAINT PAUL,MN 55103-2139 state.auditor(a),osa.state.mn.us(E-mail) STATE AUDITOR 1-800-627-3529(Relay Service) Statement of Position Public Expenditures: Donations and Dues Public entities are often asked to give funds to support various groups and activities. While the causes may be worthwhile, public entities need to be cautious when making any financial commitments involving public funds. In most circumstances, public entities have no authority to give away public funds as donations. Generally, in order to spend money, a public entity must have authority to do so. Authority for an expenditure may be specifically stated in a statute or charter, or it may be implied as necessary to do what an express power authorizes. In addition, the expenditure must be for a"public purpose." Gifts/Donations to Private Individuals/Organizations Following these general principles, donations to people, non-profits, charities, or other groups are not permitted unless they are based upon specific statutory or charter authority. For example, the Minnesota Attorney General's Office has issued opinions finding that cities have no authority to donate city funds to organizations such as the Red Cross or the Boy Scouts.' The assumption is that a gift of public funds to an individual or private entity serves a private rather than a public purpose. Before a public entity makes a contribution, it is important for that entity to determine that it has specific authorization to make the expenditure. Here are some examples of specific, statutorily authorized appropriations: • Artistic Organizations. A county, city or town may appropriate money to support artistic organizations? • Historical Causes. A town or city may appropriate annually a specified amount to a county historical society so long as the society is affiliated with, and approved by, the Minnesota Historical Society.3 Cities have express authority to commemorate important and outstanding events in city history, and to appropriate money to collect, preserve and distribute its history data for future generations.' The Attorney General's Office recognizes that a city can advance money to a 'See,for example, Op.Att'y Gen.59-A-3(May 21, 1948). 'Minn.Stat. §471.941. 'Minn.Stat. § 138.053. 4 Minn.Stat.§471.93. Reviewed: December 2014 2007-1017 Revised: April 2014 This Statement of Position is not legal advice and is subject to revision. An Equal Opportumty Employer 36