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<br /> <br />STATE OF MINNESOTA <br />OFFICE OF THE STATE AUDITOR <br /> <br />PATRICIA ANDERSON <br />STATE AUDITOR <br /> <br />SUITE 500 <br />525 PARK STREET <br />SAINT PAUL, MN 55103-2139 <br /> <br />(651) 296-2551 (Voice) <br />(651) 296-4755 (Fax) <br />state.auditortlu.state.mn.us (E-mail) <br />1-800-627.3529 (Relay Service) <br /> <br />Statement of Position <br />City Public Expenditures Donations and Dues <br /> <br />December 2004 <br /> <br />Cities are often asked to give funds to support various groups and activities. While the <br />causes may be worthy, cities need to be cautious when making any financial <br />commitments involving public funds. <br /> <br />Generally, in order to spend money on something, a local government must have <br />authority to do so. . Authority for an expenditure may be specifically stated in a statute or <br />charter, or it may be implied as necessary to do what an express power authorizes. <br /> <br />Gifts/Donations to Private Individuals/Organizations <br /> <br />Following this general principle, donations to people, non-profits, charities, or other <br />groups are not permitted unless they are based upon specific statutory or charter <br />authority. For example, the Minnesota Attorney General's Office has issued opinions <br />finding that cities have no authority to donate city funds to 4-H Clubs, the Red Cross, or <br />the Boy Scouts. The assumption is that a gift of public funds to an individual or private <br />entity necessarily serves a private rather than a public purpose. <br /> <br />Before a city makes a contribution, it is important for the city to determine that it has <br />specific authorization to make the expenditure. Here are some examples of specific, <br />statutorily authorized appropriations: <br /> <br />. Artistic Organizations. A county, city or town may appropriate money to <br />support artistic organizations. <br />. Historical. A city may annually appropriate a specified amount to a county <br />historical society affiliated with, and approved by, the Minnesota Historical <br />Society. The Attorney General recognizes that a city can sponsor a centennial <br />celebration. Cities have express authority to commemorate important and <br />outstanding events in city history. <br />. SeniorlY outh Centers. A county, city or town may appropriate money to <br />support the facilities, programs, and services of a public or private, not-for-profit <br />senior citizen center or youth center. <br />. City Promotion. A city may appropriate up to $50,000 annually to an <br />incorporated development society or organization of this state, for promoting, <br />