May 6, 1980

Ms. Margaret Strand 
Clerk 
Palmya Township 
Brown County 
Aberdeen, South Dakota 57401

Official Opinion No. 80-30

Donation of Township Funds to Area Teen Center

Dear Ms. Strand:

You have requested an official opinion from this office in regard to the following factual situation:

FACTS: 

In Frederick, South Dakota, there is an Area Teen Center which is a non- profit community organization under the Green Thumb Program.  This Area Teen Center has asked our township for a donation and we would gladly donate, but questions have arisen as to whether it is legal for our township to donate funds through our revenue sharing, or otherwise, to this Area Teen Center.

Based on the above facts, you have asked the following questions:

QUESTIONS: 

1.  Is it lawful for Palmyra township to donate township funds to an Area Teen Center in Frederick, South Dakota? 

2.  Is it lawful for Palmyra township to donate its revenue sharing funds to an Area Teen Center in Frederick, South Dakota?

IN RE QUESTION NO. 1:

With respect to your first question, I would refer you to the provisions of SDCL 8-10-6.  That statute provides: 

The following shall be deemed township charges: 

1.  The compensation of township officers for services rendered their respective townships; 

2.  Contingent expenses necessarily incurred for the use and benefit of the township; 

3.  The money authorized to be raised by the vote of the township meeting for any township purpose; 

4.  Every sum directed by law to be raised for any township purpose; but no tax for township purposes shall exceed the amount voted to be raised at the annual meeting.

In addition, SDCL 8-2-10 provides: 

No organized township shall possess or exercise any powers except such as are enumerated in this chapter, or are especially given by law or are necessary to the exercise of the powers so enumerated or granted.

It appears to me that subdivision 2 of SDCL 8-10-6, cited above, is the section of the law to consider in responding to your question.  In reviewing that section of the law it is clear that considerable discretion is vested with the township in deciding that a certain matter would fit within this area of the law.  However, it is also clear that the statute would require the expense be for a contingency and that it be incurred for the use and benefit of the township.  Very frankly, I do not believe that this statute can be reasonably  stretched to cover the contribution of money to an area teen center.  This is particularly true where the facts would be that the teen center is located outside of the township that would be making the 'contribution.'

The answer to your question, therefore, is no.  There being no specific authorization for making such contributions, and there additionally being no reasonable argument that such contribution is for a contingency or is 'necessary' for the benefit of the township, it is my view that your township may not legally donate its funds to the Frederick Teen Center under existing South Dakota law.

IN RE QUESTION NO. 2:

In response to your second question concerning the matter of revenue sharing, it is my understanding that if state law would allow the township's own funds to be used for this purpose, revenue sharing funds could then also be used for this purpose.  In view of my answer to your first question, the answer to your second question would also be no.

Respectfully submitted,

Mark V. Meierhenry
Attorney General