For the city, this time of year means budget presentations, levy discussion and finalizing upcoming projects. This time of year also means giving and offering thanks for what has been received. What follows is a brief overview of what a city can give and receive.

For the city, to appropriate or give away public funds as donations to any person, corporation, or private institution, the expenditure must further a public purpose and must be authorized by a statute or charter. There is no broad authority for donations, but some statutes allow specific support for certain organizations and causes. For example, the law permits donations to an incorporated developmental society and various statutory economic development tools permits contributions toward development and redevelopment.

Since a public expenditure must always further a public purpose, analysis by the city of what qualifies as a “public purpose” is crucial.

The City of Marshall can accept donations of money, supplies, and services. Donations can be made anonymously or in the name of the donor. Donations may be for a specific purpose or for general municipal purposes.

If someone offers a donation to a city, the city may accept the donation or reject it. If the donation has “strings attached,” such as when a cash donation is offered for use only at the senior center, the city may accept it only for that purpose, if it agrees with the condition, or otherwise reject it. If there are no conditions attached, the donation may be used for any municipal purpose. A resolution accepting the donation and the donor’s terms must receive an affirmative vote of two-thirds of the members of the council.

A question that is periodically asked is whether a donation to a local government is tax deductible. It is. Charitable contributions to governmental units are tax-deductible under section 170(c)(1) of the Internal Revenue Code if made for a public purpose.

While it is always nice to receive an unexpected gift, some cities actively encourage the public and businesses to give money or pay for needed public programs. Examples of this are many for the City of Marshall, but most recently the Memorial Park and Veterans Memorial Project that was initiated by community members who partnered with the city and raised funds to ensure its completion.

Annually the city’s Park and Recreation Department receives many donations-from individuals, businesses and nonprofits in the community. In 2023, community donations towards Parks and Recreation were over $250,000. These donations will help fund inclusive playground equipment, improving the Legion Field baseball complex and installation of a new disc golf course at Independence Park.

Without these donations, the city would need to delay the project until sources of revenue were identified or most likely utilize the property tax to ensure completion of these worthy projects.

Many individuals, businesses and nonprofits have made positive impacts this past year with their support of public city projects. Consider their contributions this season when considering how to give back to the community by shopping, dining and supporting them.

— Sharon Hanson is the city administrator for the city of Marshall