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

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 paired the answer with a caution "against any action that could be considered improper or illegal, such as accepting a donation in exchange for favorable treatment." Because the questions involve the receipt and expenditure of public funds, the AG suggested contacting the Office of the State Auditor's Technical Assistance Division, and the Mississippi Ethics Commission for guidance on any potential conflicts under Mississippi's Ethics in Government Laws (Sections 25-4-101 et seq.).

What this means for you

For school boards and district business officers

The opinion holds that "there is no statutory prohibition against a school district accepting a lawful donation" from a vendor or contractor "currently under contract with the school district," and that the same is true of a benefit such as a waiver of interest or fees owed. It grounds the authority to accept donations in school-district home rule under § 37-7-301.1. The single caution it attaches is "against any action that could be considered improper or illegal, such as accepting a donation in exchange for favorable treatment." The opinion does not prescribe any particular approval procedure or documentation.

On vendor rebates specifically, the opinion points to § 31-7-23, under which "any rebates, refunds, coupons, merit points, gratuities or any article of value" a governing authority receives from a vendor "shall inure to the benefit of the agency or governing authority making the purchase," and the body may use the item or convert it to cash for the district's exclusive benefit.

For school district attorneys, vendors, and others

The opinion suggests two additional contacts because the questions involve the receipt and expenditure of public funds: the Technical Assistance Division of the Office of the State Auditor, and the Mississippi Ethics Commission "for further guidance on any potential conflicts under Mississippi's Ethics in Government Laws, Sections 25-4-101 et seq." It does not itself analyze any ethics or conflict-of-interest question.

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.

How should the donation be documented?
The opinion does not prescribe a method. It grounds the authority to accept donations in the home-rule power under § 37-7-301.1 to adopt orders, resolutions, or ordinances on school district affairs, property, and finances.

Is there a dollar threshold below which donations are uncontroversial?
The opinion does not set a threshold. Its only stated limit is the caution against accepting a donation "in exchange for favorable treatment."

Should I consult the Ethics Commission?
The opinion suggests contacting the Mississippi Ethics Commission for guidance on potential conflicts under the Ethics in Government Laws (§§ 25-4-101 et seq.), and the State Auditor's Technical Assistance Division on public-funds 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).

The opinion concludes there is no statutory prohibition on a school district accepting a donation from a vendor or contractor under contract with it. Its stated constraint is the caution against accepting a donation "in exchange for favorable treatment," and it points to Mississippi's Ethics in Government Laws (Sections 25-4-101 et seq.) and the Mississippi Ethics Commission for conflict-of-interest guidance.

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

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2025/07/D.-Simmons-July-11-2025-Donations.pdf

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
3. 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.
4. 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).