Expenditures Not Allowed

Lawful purpose expenditures that are not allowed include the following.

Benefit to organization making expenditure prohibited	An organization may not retain any control over any expenditure, contribution, or other disposition of gambling gross profits.  EXCEPTION: The only exception is for expenditures made by a licensed 501(c)(3) or 501(c)(4) festival organization to its own general fund. (See Minnesota Rules, Part 7861.0320, Subpart 4; and Minnesota Statutes, Section 349.154, subdivision 1)  Any contribution or expenditure that results in any monetary, economic, financial, or material benefit to the organization making the contribution or expenditure.
Circumventing lawful purpose	Any contribution to a 501(c)(3) organization or other entity with the intent or effect of not complying with lawful purpose restrictions or requirements.
Conflict of interest	Any contribution or expenditure that is not allowed under the conflict-of-interest provisions of the Minnesota Nonprofit Corporation Act, Minnesota Statutes, Section 317A.255.
Fundraising exception	A contribution or expenditure may not be made for the purposes of fundraising, except for an expenditure by a 501(c)(3) organization or a 501(c)(4) festival organization from its general fund.
Direct law enforcement contribution	A contribution may not be made directly to a law enforcement agency, such as police or sheriff, or to a prosecutorial agency.
Liquor	The purchase of any intoxicating liquor, wine, or malt beverages is not allowed.
Pension or retirement fund (government)	A contribution may not be made to a city, county, or town with the knowledge that the governmental unit intends to use the contribution for a pension or retirement fund.
Political purposes	An expenditure made or incurred for the purpose of influencing the nomination or election of a candidate for public office.  A contribution for promoting or defeating a ballot question.  A contribution for any activity intended to influence an election or a governmental decision-making process.
Tax interest, penalties	Interest on taxes, tax penalties, or interest on tax penalties are allowable expenses, not lawful purpose expenditures.