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Local Government Q&A Ancel Glink attorneys each month post a new question and answer on the website. Many of these questions have been edited and collected in a pamphlet in the Ancel Glink Library: 230 Questions that have Actual Answers. Set out below are a series of recent questions and answers. Test your knowledge of questions and answers about local governmental bodies with those listed below. Many of these questions are directed to municipalities, but others specifically deal with municipalities with some questions concern legal issues in the context of other governmental bodies. Many of these answers apply to all governments in Illinois. Click here to submit a question to Ancel Glink. Municipal Q&A - January 2005 May a governmental body give money to a charitable or religious organization?
ANSWER:
Generally, the expenditure of public funds for a non-public or non-governmental purpose is prohibited. If grants are merely gifts they can be recovered in a taxpayer initiated lawsuit. However, where a charitable or religious organization is performing a service the government is otherwise authorized to perform or the government has contracted with the organization to perform such a service, the payment of funds does serve a public purpose and is lawful. It is important to note that the charitable or religious organization cannot provide the public service on a discriminatory basis favoring any religion, race, or ethnicity. It is not uncommon for communities to make token donations to a charitable cause in honor or memory of a public official. Because of the small nature of the expenditure, these payments are not routinely challenged. However, making the practice a regular and substantial part of the government's budget should be discouraged.
There are a number of statutory provisions which codify the general principles in a limited number of circumstances. For example, under Division 11 of the Illinois Municipal Code a municipality is allowed to pay charitable or non-profit organizations to perform services related to the elimination of poverty, operation of youth-oriented service and counseling programs and the provision of special services for seniors. 65 ILCS 5/11-5.2-1, et seq. Although home rule municipalities do not need to find statutory authority for their actions, all governments are subject to the limitation that their expenditures and actions must be directed at some "public purpose."
There are very few judicial interpretations of the general principles, but it is clear that a governmental body may donate funds to a non-profit, charitable or religious organization so long as the services the organization provides may otherwise be performed by the government and directly benefit the community in a non-discriminatory manner. Otherwise, the disbursement may be challenged as an illegal diversion of public funds for a private purpose.
Previous Questions
What is the new Illinois law regarding terms of office of elected public officials?
Are religious institutions entitled to special treatment in zoning cases?
What Must Municipal Officials Do To Comply With The New Federal and State Overtime Regulations?
What Must Municipal Officials Do To Comply With The New State Ethics Acts?
Can a special use or variance be granted only to a particular person for for a limited time?
Does charging a fee for private use of public property destroy its tax-exempt status?
Does the one-year tort statute of limitations always apply against governmental bodies?
Do fire protection district codes supercede municipal codes?
Are Courts Especially Hard On Governmental Bodies?
What Are the New Rules About Recording Closed Meetings?
What Does a Municipality Need to Know About Extending
Utility Lines?
Are Courts Especially Hard On Governmental Bodies?
How Can You Achieve Flexibilty in
Health Care Coverages in a Collective Bargaining Agreement?
Are political discussions subject to the Open Meetings Act?
What can be done about IMRF Overfunding?
How can a municipality regulate wireless internet service providers?
How can governments counter unionization?
Where can I find an outline of zoning and planning issues?
How are closed session Minutes taken, approved and reviewed?
Will insurance companies and governmental pools cover claims
for "regulatory takings?"
Who gets to choose the municipal attorney?
How are the Open Meetings Act and FOIA impacted by municipal
elections?
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