Can a Mississippi town donate money to a Boys and Girls Club that serves town kids but has its main office in a neighboring city?
Plain-English summary
The Town of Summit, Mississippi, wanted to donate to the Boys and Girls Club of Southwest Mississippi. The Club is registered with the Mississippi Secretary of State's charities division. Its main building is in McComb (a neighboring city), with another in Tylertown. There are no Club buildings in Summit, but the Club serves children from Summit through its programs.
The Town's attorney asked: can Summit donate to the Club, even though no Club facility sits inside Summit's town limits?
The AG said yes, with one factual hook the town must satisfy: it must determine that the Club operates as a "chartered chapter located within the municipality." The AG made clear, citing prior opinions, that "located within the municipality" does not require the Club's principal office to be inside town limits. Operation within the town (programs serving town children) is enough.
Section 21-19-67 is one of the narrow statutory exceptions to the constitutional prohibition on municipal donations. The legislature carved out specific categories of charitable donation authority for municipalities, and Boys and Girls Clubs is one. Within that authority:
- The donation must be to a "chartered chapter" located (operating) within the municipality.
- Total annual donations to all such chapters are capped at the amount generated by 1/4 mill on the municipality's taxable property.
- The municipality cannot impose any additional tax to fund the donation.
This opinion is consistent with the AG's broader approach to similar statutes for the American Red Cross (§ 21-19-57) and similar narrow charitable donation exceptions. The "located within the municipality" language is read as an operational test, not a real estate test.
What this means for you
If you're a Mississippi town or city considering a Boys and Girls Club donation
The donation is lawful if:
- The Club is a chartered chapter of the Boys and Girls Clubs of America. Confirm the chartering with the national Boys and Girls Clubs of America organization.
- The Club operates within your municipality. Operation includes any of: a program location in town, a recurring service to town children, a town-funded slot in a Club program, or other meaningful operational presence. The Club's main building does not have to be in town.
- Your municipality makes the factual determination on its minutes. Adopt a board order specifying the Club, the operational connection, and the donation amount.
- The donation, plus any other Boys and Girls Club donations from the municipality that year, does not exceed the amount the municipality could generate from 1/4 mill on its taxable property. Get this number from your tax assessor or finance officer.
- You do not increase taxes to fund the donation. The 1/4 mill is a cap on amount, not an authorization to levy a special tax.
If you operate a Boys and Girls Club
If your Club serves residents of multiple municipalities, multiple municipalities can donate to you under § 21-19-67(a). Your office only needs to be in one of them; the others can donate based on the Club's operations within their boundaries. Practical guidance:
- Document your operational presence in each municipality (program statistics, attendance, services).
- Provide chartering documentation when asked.
- Keep careful records distinguishing donation streams; some donors may have specific use restrictions.
If you're a state auditor field examiner
Section 21-19-67 donations are routine and generally compliant. Look at:
- Did the city find the Club to be a chartered chapter located within the municipality?
- Is the donation within the 1/4-mill cap?
- Was a special tax levied to fund it (which would be improper)?
Donations outside § 21-19-67(a) (e.g., to a Boys and Girls Club that does not chartered or does not operate in the municipality) are exposed under Section 66.
If you're a state legislator
Section 21-19-67 lists multiple charitable donation categories for municipalities. Adding new categories has been the legislature's response to other useful charitable causes. The structure of the statute (specific named charity + cap) is constitutionally workable under Section 66.
Common questions
Q: What does "chartered chapter" mean?
A: A formally chartered chapter of the Boys and Girls Clubs of America national organization. Verify with national headquarters or the chapter's chartering documents.
Q: How is the 1/4-mill cap calculated?
A: 1/4 of one mill on all taxable property within the municipality, calculated based on the latest assessment. Your tax assessor can produce the figure. The cap applies to the cumulative donations from the municipality to all Boys and Girls Club chapters during that fiscal year, not to each donation individually.
Q: Can a city donate to multiple chapters?
A: Yes, as long as the cumulative total does not exceed the cap. Each chapter must be operating within the municipality.
Q: What's the difference between § 21-19-67 and § 19-5-93?
A: Section 21-19-67 is the municipal donation authority. Section 19-5-93 is the parallel county donation authority. Both list specific charitable categories. The Boys and Girls Club authorization is municipal-only; counties looking to donate to a Boys and Girls Club need a different statutory hook (or to use county-owned facility access under public-service-finding rules).
Q: Can the town donate to a 501(c)(3) that is not a Boys and Girls Club but does similar work?
A: Probably not under § 21-19-67. That statute is specific to listed charitable organizations. A nonprofit doing similar work would need separate statutory authority.
Q: What if the Boys and Girls Club operates in town but is not chartered?
A: Both elements (chartered + operating) must be present. An unchartered local club (even with the same name) does not qualify under § 21-19-67(a).
Background and statutory framework
Mississippi Constitution Article 4, Section 66 broadly prohibits municipal donations except as specifically authorized by law. Section 21-19-67 is one of those specific authorizations. Subsection (a) addresses the Boys and Girls Clubs:
The governing authority of any municipality in the state, in its discretion, is authorized to donate annually, out of any funds in the municipal treasury, to:
(a) Boys and Girls Club. Any chartered chapter of the Boys and Girls Clubs of America located within the municipality, provided that the cumulative sum of donations to all chapters within the municipality does not exceed the amount generated in the municipality by one-fourth ( ¼ ) mill on all of the taxable property within the municipality, during the fiscal year in which the donations are made. Nothing in this paragraph authorizes the imposition of additional tax.
The structure: discretion + specific charity + cap + no special tax. Other subsections of § 21-19-67 cover other named charities (e.g., American Red Cross under a parallel section).
The "located within the municipality" language has been litigated through AG opinions for decades. The AG has consistently read it functionally: operation within the municipality satisfies the requirement. A chapter does not need a brick-and-mortar presence in town as long as it actually serves town residents.
The factual determination piece is important. The municipal authority must make the determination on its minutes. This protects against later challenges and creates a record for state auditor review.
Citations and references
Statutes:
- Miss. Code Ann. § 21-19-67 (municipal charitable donation authority)
- Miss. Code Ann. § 21-19-67(a) (Boys and Girls Club donation authority)
Prior AG opinions referenced:
- MS AG Op., Mitchell (Nov. 16, 2018), chartered chapter test is operational, not principal-office
- MS AG Op., McGee (July 3, 2009), parallel rule for American Red Cross under § 21-19-57
Source
- Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
- Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2023/05/B.GilbertJr.-April-26-2023-Proposed-Donation-to-the-Boys-and-Girls-Club-of-Southwest-Mississippi.pdf
Original opinion text
April 26, 2023
Ben L. Gilbert, Jr., Esq.
Attorney, Town of Summit
Post Office Drawer 1919
McComb, Mississippi 39649-1919
Re: Proposed Donation to the Boys and Girls Club of Southwest Mississippi
Dear Mr. Gilbert:
The Office of the Attorney General has received your request for an official opinion.
Background
According to your request, the town of Summit (the "Town") has proposed a donation to the Boys and Girls Club of Southwest Mississippi (the "Club"). The Club is duly chartered and registered with the Mississippi Secretary of State charities division. The Club's main location is in the neighboring municipality of McComb, and there is another Club location in Tylertown. There are no brick-and-mortar locations in the Town, but the Club serves children throughout Southwest Mississippi, including a number of children from the Town.
Question Presented
Is it legal for the town of Summit to make a donation to the Boys and Girls Club of Southwest Mississippi?
Brief Response
The town of Summit may make a donation to the Boys and Girls Club of Southwest Mississippi, provided the Town determines that the Club qualifies as a chartered chapter located within the municipality.
Applicable Law and Discussion
Mississippi Code Annotated Section 21-19-67 provides, in pertinent part:
The governing authority of any municipality in the state, in its discretion, is authorized to donate annually, out of any funds in the municipal treasury, to:
(a) Boys and Girls Club. Any chartered chapter of the Boys and Girls Clubs of America located within the municipality, provided that the cumulative sum of donations to all chapters within the municipality does not exceed the amount generated in the municipality by one-fourth ( ¼ ) mill on all of the taxable property within the municipality, during the fiscal year in which the donations are made. Nothing in this paragraph authorizes the imposition of additional tax.
This office has previously opined that whether a subject club qualifies as a chartered chapter located within the municipality is a factual determination to be made by the municipality. MS AG Op., Mitchell at 1 (Nov. 16, 2018). Additionally, this office opined that Section 21-19-67(a) does not require that a chartered chapter have its principal office located within the municipality; thus, "operation of the club within the municipality is sufficient to meet the requirements of Section 21-19-67(a)." Id; see also MS AG Op., McGee at 1 (July 3, 2009) (opining that the language of Section 21-19-57 regarding donations to the American Red Cross "does not restrict donations to only those chapters that are physically headquartered within the municipal boundaries," and whether the subject American Red Cross qualified as a "local chapter" was a factual determination to be made by the governing authority).
This office remains of the opinion that if the Town makes the factual determination that the Club qualifies as a chartered club operating within the municipality, then the Town may make a donation pursuant to Section 21-19-67(a).
If this office may be of any further assistance to you, please do not hesitate to contact us.
Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By: /s/ Beebe Garrard
Beebe Garrard
Special Assistant Attorney General