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 the statute that authorizes this kind of municipal donation. As quoted in the opinion, its Boys and Girls Club provision sets three conditions:

• The donation must be to a "chartered chapter" of the Boys and Girls Clubs of America located within the municipality.
• The cumulative sum of donations to all chapters within the municipality may not exceed the amount generated by one-fourth (¼) mill on all taxable property in the municipality during the fiscal year.
• Nothing in the paragraph authorizes the imposition of additional tax.

The AG read "located within the municipality" the same way it had for the parallel American Red Cross statute (§ 21-19-57) in the McGee opinion: the chapter does not need its principal office inside town limits, and operation of the club within the municipality is enough.

What this means for you

If you're a Mississippi town or city considering a Boys and Girls Club donation

Under this opinion, the donation is authorized by § 21-19-67(a) if the municipality determines that the recipient is a chartered chapter of the Boys and Girls Clubs of America located within the municipality. The AG stresses two points from prior opinions: whether the club qualifies is a factual determination for the municipality to make, and "located within the municipality" does not require the club's principal office to be in town, because operation of the club within the municipality is sufficient. The statute also caps cumulative donations to all chapters at the amount generated by ¼ mill on the municipality's taxable property and does not authorize any additional tax.

If you operate a Boys and Girls Club

Under the AG's reading, a chapter does not need its principal office inside a municipality to receive a donation from it; operation of the club within the municipality is enough. Because the test is operational, a chapter that serves children in more than one municipality may qualify in each one, with each municipality making its own factual determination.

If you're a state legislator

Section 21-19-67 authorizes municipalities to make annual donations to specifically named charitable organizations, including chartered Boys and Girls Club chapters located within the municipality, subject to the ¼-mill cap. The opinion applies the statute as written and does not propose any change to it.

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: Does this opinion let a town donate to any nonprofit that does similar work?
A: No. The opinion is about § 21-19-67(a), which authorizes donations to chartered Boys and Girls Club chapters located within the municipality. It does not address donations to other nonprofits, which would depend on 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

Section 21-19-67 authorizes municipalities to donate annually, out of municipal funds, to certain named charitable organizations. 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 is discretion to donate, a specifically named charity, a ¼-mill cap, and no authorization for an additional tax.

The AG relied on two prior opinions to read "located within the municipality" functionally. In Mitchell (Nov. 16, 2018), it opined that whether a club qualifies as a chartered chapter located within the municipality is a factual determination for the municipality, and that the statute does not require the chapter's principal office to be in town, so operation of the club within the municipality is sufficient. In McGee (July 3, 2009), it read the parallel American Red Cross language in § 21-19-57 the same way: donations are not restricted to chapters physically headquartered within municipal boundaries, and whether a chapter is "local" is a factual determination for the governing authority.

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