Lawful purpose expenditures that are not allowed include the following.
Benefit to organization making expenditure prohibited |
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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 |
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Tax interest, penalties | Interest on taxes, tax penalties, or interest on tax penalties are allowable expenses, not lawful purpose expenditures. |