MS 2025-07-D-Simmons-July-11-2025-Donations July 11, 2025

Can a Mississippi school district accept a donation, or a fee waiver, from a vendor or contractor who currently does business with the district?

Short answer: Yes, with caution. There is no statutory prohibition on a school district accepting a donation, or a fee/interest waiver, from a vendor or contractor currently under contract with the district. The board should avoid anything that looks like quid pro quo. Section 31-7-23 already requires vendor rebates and gratuities to inure to the district. Consult ethics commission and state auditor.

Disclaimer: This is an official Mississippi Attorney General opinion. AG opinions are persuasive authority but not binding precedent. This summary is for informational purposes only and is not legal advice. Consult a licensed Mississippi attorney for advice on your specific situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official AG opinion. The original opinion (linked at the bottom of this page, or PDF in the sidebar) is the authoritative source for any reliance.

View original AG opinion (PDF)

Plain-English summary

Senator Derrick Simmons, in his role as attorney for the Greenwood Leflore Consolidated School District, asked whether a school district can accept (1) a donation from a vendor or contractor that is already under contract with the district, and (2) a benefit such as a waiver of interest or fees that the district owes a vendor as if it were a donation.

The AG said yes to both, with the obvious caveat: do not accept anything in exchange for favorable treatment. There is no statutory prohibition. School districts have general home-rule authority under Section 37-7-301.1 to adopt orders, resolutions, or ordinances on school district affairs, property, and finances if not inconsistent with state law. That authority covers accepting donations.

Section 31-7-23 specifically addresses vendor rebates: any rebates, refunds, coupons, merit points, gratuities, or "any article of value" tendered or received by a governing authority (which includes school boards under Section 31-7-1(b)) from a vendor "shall inure to the benefit of the agency or governing authority making the purchase." So if a vendor gives the district a rebate or perk, it goes to the district, which can use it or convert it to cash for district benefit. That is the statutory framework.

The AG flagged the obvious risk: accepting a donation in exchange for favorable treatment crosses into bribery, ethics violations, and misuse of public office. The AG referred Simmons to the Office of the State Auditor's Technical Assistance Division (for expenditure-of-public-funds questions) and the Mississippi Ethics Commission (for conflict-of-interest analysis under Sections 25-4-101 et seq.).

What this means for you

For school boards considering vendor donations

Donations from vendors who currently have contracts with you are legal but politically and ethically loaded. Adopt a written policy: every donation from a current vendor goes through board approval, with a written record showing what it was, why it was offered, and that no quid pro quo exists. Spread the policy on the minutes.

For fee waivers (a vendor forgiving interest or late fees), treat those as donations. Same rule: board approval, documentation, no exchange for favorable treatment.

If a vendor asks for any "consideration" in return (faster payment, contract preference, future bid favoritism), refuse the donation. Document the refusal.

For school district business officers

Section 31-7-23 already gives the district a claim on rebates, refunds, coupons, merit points, and gratuities from vendors. Audit your purchasing relationships: are vendor rebates flowing to the district as the statute requires, or to individuals? Cleanup is overdue if rebates are sitting in employee accounts or being converted to personal benefits.

For school district attorneys

Brief the board on this opinion plus the broader ethics framework. The AG's caution about "improper or illegal" conduct is real. Reckless acceptance of vendor "gifts" can become bribery, conflict-of-interest violations, or misuse of office. The Ethics Commission has detailed guidance under Section 25-4-101 et seq.

For vendors and contractors offering donations

Be careful. Even a well-intentioned donation can look like an attempt to influence procurement. Coordinate with the district before offering. Get the offer documented. Avoid timing donations near contract decisions or audits.

For the State Auditor

The Technical Assistance Division is the right office for procedural questions on accepting and using vendor donations. Watch for cases where rebates or gratuities are not being captured under Section 31-7-23.

For the Mississippi Ethics Commission

The opinion explicitly defers conflict-of-interest analysis to the commission. Confirm guidance for school boards on accepting donations from current vendors.

Common questions

Can a vendor that has a current contract with the district donate to the district?
Yes. There is no statutory prohibition, but the board must avoid the appearance of favorable treatment in exchange.

Can a vendor waive fees or interest the district owes them?
Yes. The AG treats this as a donation. Same rule: avoid quid pro quo.

What about rebates and refunds from vendors?
Section 31-7-23 already requires those to inure to the district. They are not "donations" in the loose sense; they are statutorily owed to the public body.

Where do I document the donation?
On the board's minutes. A resolution duly adopted that records the donation, identifies the donor, the value, and the absence of any quid pro quo. Spread it on the minutes for transparency and for audit purposes.

Is there a dollar threshold below which donations are uncontroversial?
The AG opinion does not set a threshold. The size of the donation may matter for ethics analysis (large sums are more likely to look like influence-buying), but state law does not exempt small donations from the no-quid-pro-quo rule.

Should I consult the Ethics Commission?
Yes, when in doubt. The AG explicitly referred school districts to the commission for conflict-of-interest questions.

Background and statutory framework

Section 37-7-301.1 gives school boards home-rule authority:

The school board of a school district may adopt any orders, resolutions or ordinances with respect to school district affairs, property and finances which are not inconsistent with the Mississippi Constitution of 1890, the Mississippi Code of 1972, or any other statute or law of the State of Mississippi.

Section 31-7-23 governs vendor rebates and gratuities:

Any rebates, refunds, coupons, merit points, gratuities or any article of value tendered or received by any agency or governing authority from any vendor of material, supplies, equipment or other articles shall inure to the benefit of the agency or governing authority making the purchase. The agency or governing authority may, in accordance with its best interest, either take delivery of the article of value tendered and use the same or convert it to cash by selling it for its fair and reasonable value, making use of the proceeds from such sale for the exclusive benefit of the agency or governing authority.

School boards are within the "governing authority" definition under Section 31-7-1(b).

There is no statutory prohibition on school districts accepting donations from vendors or contractors. The constraint is the general one against accepting anything in exchange for favorable treatment, which is governed by Mississippi's Ethics in Government Laws (Sections 25-4-101 et seq.) and the broader law against bribery and misuse of public office. The Ethics Commission enforces those laws.

Citations

Miss. Code Ann. §§ 25-4-101, et seq. (Mississippi Ethics in Government Laws)
Miss. Code Ann. § 31-7-1(b) (governing authority definition includes school boards)
Miss. Code Ann. § 31-7-23 (vendor rebates and gratuities inure to public body)
Miss. Code Ann. § 37-7-301.1 (school board home-rule authority)

Source

Original opinion text

July 11, 2025
The Honorable Derrick T. Simmons
Attorney, Greenwood Leflore Consolidated School District
Post Office Box 1854
Greenville, Mississippi 38702
Re:

Donations

Dear Senator Simmons:
The Office of the Attorney General has received your request for an official opinion.
Questions Presented
1. Can a local school district accept a donation from an individual, vendor, business, and/or entity
currently under contract with the school district?
2. Can a local school district accept a benefit from an individual, vendor, business, and/or entity
(a waiver of interest or fees that the school district owes to that individual, vendor, business, and/or
entity) as a donation to that school district?
Brief Response
1. There is no statutory prohibition against a school district accepting a lawful donation from an
individual, vendor, business, and/or entity currently under contract with the school district.
However, we caution against any action that could be considered improper or illegal, such as
accepting a donation in exchange for favorable treatment.
2. There is no statutory prohibition against a school district accepting a benefit, such as a waiver
of interest or fees owed, from an individual, vendor, business, and/or entity currently under
contract with the school district. However, we caution against any action that could be considered
improper or illegal, such as accepting a donation in exchange for favorable treatment.
Applicable Law and Discussion
Pursuant to school district home rule, school districts generally have the authority to accept
donations. Miss. Code Ann. § 37-7-301.1 ("The school board of a school district may adopt any
orders, resolutions or ordinances with respect to school district affairs, property and finances which
are not inconsistent with the Mississippi Constitution of 1890, the Mississippi Code of 1972, or
any other statute or law of the State of Mississippi."). There is no statutory prohibition against a
school district receiving a donation from an individual, vendor, business, and/or entity currently
under contract with the school district. The statutes do speak to vendor rebates, with Section 31-7-23 providing:

Any rebates, refunds, coupons, merit points, gratuities or any article of value
tendered or received by any agency or governing authority[1] from any vendor of
material, supplies, equipment or other articles shall inure to the benefit of the
agency or governing authority making the purchase. The agency or governing
authority may, in accordance with its best interest, either take delivery of the article
of value tendered and use the same or convert it to cash by selling it for its fair and
reasonable value, making use of the proceeds from such sale for the exclusive
benefit of the agency or governing authority.

Accordingly, it is the opinion of this office that a school board generally may accept donations
from an individual, vendor, business, and/or entity currently under contract with the school district.
However, we caution against any action that could be considered improper or illegal, such as
accepting a donation in exchange for favorable treatment.
Because your questions deal with the receipt and expenditure of public funds, we suggest that you
also contact the Technical Assistance Division in the Office of the State Auditor. You also may
wish to contact the Mississippi Ethics Commission for further guidance on any potential conflicts
under Mississippi's Ethics in Government Laws, Sections 25-4-101 et seq.
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

[1] School boards are included in the definition of "governing authority." Miss. Code Ann. § 31-7-1(b).