Tennessee § 6-54-111 - Appropriation of funds for nonprofit organizations.

§ 6-54-111. Appropriation of funds for nonprofit organizations.

The legislative body of each municipality may appropriate funds for the financial aid of any nonprofit charitable organization or any nonprofit civic organization in accordance with the guidelines required by subsection (b). For the purposes of this section, “nonprofit charitable organization” is one in which no part of the net earnings inures or may lawfully inure to the benefit of any private shareholder or individual and that provides year-round services benefiting the general welfare of the residents of the municipalities. For the purposes of this section, “nonprofit civic organization” means a civic organization exempt from taxation pursuant to § 501(c)(4) or (c)(6) of the Internal Revenue Code of 1954 (26 U.S.C. § 501(c)(4), (c)(6)), which operates primarily for the purpose of bringing about civic betterments and social improvements through efforts to maintain and increase employment opportunities in the municipality by promoting industry, trade, commerce, tourism and recreation by inducing manufacturing, industrial, governmental, educational, financial, service, commercial, recreational, and agricultural enterprises to locate in or remain in the municipality. The statement of public policy set forth in Acts 1955, ch. 209, § 3 is hereby incorporated into and made a part of this section, and it is hereby determined and declared that appropriations authorized by this section are needed to relieve the emergency created by the continuing migration from Tennessee and its municipalities of a large number of its citizens in order to find employment elsewhere, and to enable the municipalities of the state to assist nonprofit organizations in furthering the economic development, social welfare, and common good of its residents. The comptroller of the treasury shall devise standard procedures to assist a municipality in the disposition of funds that are appropriated under this section. Each legislative body of a municipality shall devise guidelines directing for what purpose the appropriated money may be spent. These guidelines shall provide generally that any funds appropriated shall be used to promote the general welfare of the residents of the municipality. Any funds appropriated under this section shall be used and expended under the direction and control of the legislative body of a municipality in conjunction with the guidelines and procedures of the comptroller of the treasury. Any nonprofit organization that desires financial assistance from a municipality shall file with the city clerk a copy of an annual report of its business affairs and transactions that includes, but is not limited to: Either a copy of the entity's most recently completed annual audit or an annual report detailing all receipts and expenditures in a form prescribed by the comptroller of the treasury and prepared and certified by the chief financial officer of such nonprofit organization; A description of the program that serves the residents of the municipality; and The proposed use of the municipal assistance. The report filed pursuant to subdivision (c)(1) shall be open for public inspection during regular business hours of the city clerk's office. Financial reports shall be available to fiscal officers of the municipality and shall be subject to audit under § 6-56-105. Appropriations to nonprofit organizations other than charitable organizations may be made only once notices have been published in a newspaper of general circulation in the municipality of the intent to make an appropriation to a nonprofit, but not charitable, organization specifying the intended amount of the appropriation and the purposes for which the appropriation will be spent. Acts 1978, ch. 838, § 1; T.C.A., § 6-662; Acts 1984, ch. 820, §§ 2, 4; 1995, ch. 297, §§ 1, 2; 2017, ch. 123, § 2. Compiler's Notes. Acts 1995, ch. 209, § 3, referred to in (a)(2)(B), reads as follows: “That it is hereby determined and declared that the purpose of this act is to do that which the state welfare demands, and the state public policy requires: “(a) That the migration and loss of the people of Tennessee, who are compelled to leave the territorial limits of the state, daily, weekly, monthly and yearly to obtain employment and earn a livelihood be retarded and reduced. “(b) That the conditions of unemployment existing statewide in Tennessee be relieved thereby reducing the evils attendant thereto. “(c) That the average family income in Tennessee be raised and increased as much as possible, but to an amount at least the average over the United States. “(d) That a means be provided for the citizens of communities to promote and develop industry in their areas, when it is possible for them to do so in their separate and individual capacities. “(e) That a balanced economic development highly essential to the welfare of this state be promoted. “(f) That the reconversion from war time and civil defense economy to peace time pursuits be expedited by a program for readjustment of employment to accord with employment problems necessarily arising from changed conditions. “(g) That the present and prospective health, safety, morals, pursuit of happiness, right to gainful employment and the general welfare of the citizens demand as a public purpose, the development within Tennessee of commercial, industrial, agricultural and manufacturing enterprises by the several municipalities. “(h) That the means and measures herein authorized to promote such enterprises are, as a matter of public policy, for the public purposes of the several municipalities, and the state of Tennessee. “(i) That the present and prospective promotion of health, safety, morals, pursuit of happiness, right to gainful employment, and the general welfare of the state requires the measures that are herein and hereby authorized, and to that end will afford ready and attractive markets for farm and garden products, for the development of natural resources, and for the conversion of raw materials of farm, mine and forest into finished products for the general welfare of each of such municipalities, and the entire people of the state. “(j) That the accomplishment of the things herein authorized to be done by the several municipalities will give to them local benefits peculiar to each, and general benefits to the entire state.” Acts 1995, ch. 297, § 3 provided that contributions made by municipalities in the past to the organizations authorized to receive contributions by that act are hereby ratified and approved. Amendments. The 2017 amendment rewrote (c) which read: “(c) Any nonprofit organization that desires financial assistance from a municipality shall file with the city clerk a copy of an annual report of its business affairs and transactions, which includes, but is not limited to, a copy of an annual audit, a description of the program that serves the residents of the municipality and the proposed use of the municipal assistance. Such report will be open for public inspection during regular business hours of the city clerk's office.” Effective Dates. Acts 2017, ch. 123, § 3. April 12, 2017. Attorney General Opinions. Pledge of city appropriations to nonprofit organization, OAG 99-225, 1999 Tenn. AG LEXIS 231 (12/3/99).