Could Broussard's volunteer fire department give gift certificates to its members for past service?

Plain-English summary

Broussard's mayor asked whether its volunteer fire department could purchase gift certificates for members to thank them for past service. In this 2004 opinion, the Attorney General said the purchases may have been inappropriate and drew a distinction between paid and unpaid members. Compensated members were public employees, and a public-funded gift certificate rewarding past service was an unearned bonus barred by the Louisiana Constitution's prohibition on donating public funds.

For members who received no compensation, the AG said gifts might be appropriate because they were not public employees. It described donors specifying that donated money compensate volunteers or making direct donations. The department kept donated funds separate from city appropriations, but the opinion said the gift certificates under review had been purchased with public funds. The AG recommended consulting the Louisiana Board of Ethics; it did not declare every proposed gift lawful.

Currency note

This opinion was issued in 2004. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Could a paid firefighter receive a publicly funded gift card for work already done?

The AG said no. It characterized such a gift as an unearned bonus for past services and therefore a donation of public funds.

Did the opinion give the same answer for unpaid volunteer members?

No. The AG said a gift might be appropriate for uncompensated volunteers and discussed donor-directed funds, while recommending ethics review.

Did separate donated funds make the public-funded gifts to paid members lawful?

The opinion said the department kept donated funds separately, but described the gift certificates at issue as bought with public funds. Its objection to paid-member bonuses concerned that public spending.

Was a future salary increase treated like a past-service bonus?

No. The AG distinguished a bonus for past service from a salary increase for future service, without deciding a particular future-pay plan.

Background and statutory framework

The AG applied Article 7, Section 14 of the Louisiana Constitution to publicly funded gifts. It treated compensated members as public employees who could receive earned pay and benefits but not gratuitous bonuses for work already performed. It treated uncompensated volunteers differently and suggested donor-directed support, subject to ethics questions it did not decide.

Citations

• Article 7, Section 14 of the Louisiana Constitution (public-funds donation prohibition).
• Attorney General Opinion Number 97-104 (uncompensated volunteers discussed in the footnote).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/04-0002

Original opinion text

July 19, 2004
Opinion Number 04-0002

90-A-2 Public Funds – Loan, Pledge or
Grants
Honorable Charles E. Langlinais
Article 7, Section 14 of the Louisiana
Mayor, City of Broussard
Constitution
418 East Main Street
Broussard Volunteer Fire Department’s
Broussard, LA 70518
purchase of gift certificates for its members
may have been inappropriate.
Dear Mayor Langlinais:

The City of Broussard Volunteer Fire Department is funded by the City of Broussard and by donations it receives from the general public. The donated funds are kept in a separate account from those funds appropriated by the City. The fire department recently purchased gift certificates for its members as a token of appreciation for their past services and work in the community. You question whether or not the fire department may do this.

In sum, we believe that the purchase of gift certificates may have been inappropriate. We understand that some of the members of the Broussard Volunteer Fire Department are compensated and, therefore, are public employees. As such they may only receive compensation and/or benefits that they have earned. Public employees are not allowed to receive bonuses or any other type of gratuitous, unearned payment. A bonus is an additional payment for past services rendered as opposed to a salary increase for future services.

These gift certificates were purchased with public funds and given to the members as a token of appreciation for their past services, i.e. a bonus. Article 7, Section 14 of the Louisiana Constitution specifically prohibits the donation of public funds. A bonus is a donation.

For those members who are not compensated, we believe the purchase of gift certificates may be appropriate. These members are not public employees.1 The donors may simply specify that the donated funds be used to compensate the volunteers or the donors may make direct donations to the department or members. We do, however, recommend that you discuss this with the Louisiana Board of Ethics.

1
Attorney General Opinion Number 97-104.

Page 2

Opinion Number 04-0002
Honorable Charles E. Langlinais
Mayor, City of Broussard
Page -2-

We trust that this adequately responds to your request. If you have any questions or comments, please contact or office. With kindest regards.

Yours very truly,

CHARLES C. FOTI, JR.
Attorney General

BY: _________
TINA VICARI GRANT
Assistant Attorney General

CCF, jr./TVG/dam

Page 3

Opinion Number 04-0002
Syllabus

90-A-2 Public Funds – Loan, Pledge or Grants
Article 7, Section 14 of the Louisiana Constitution

Broussard Volunteer Fire Department’s purchase of gift certificates for its members may have been inappropriate.

Honorable Charles E. Langlinais
Mayor, City of Broussard
418 East Main Street
Broussard, LA 70518

Date Received:

Date Released: July 19, 2004

Tina Vicari Grant
Assistant Attorney General