Problematic Expense Guide - A to Z
- Donations – Payments made as donations or contributions where no value or lesser value consideration is received in return, whether made to charitable organizations or any other organization or individual are prohibited uses of University funds.
- The Reason this is Unallowable – All University funds are required to be spent in a way that directly benefits the University. In general, University funds (and University property) cannot legally be given away to any organization or any individual, even if it appears to align with our mission. In general, donations made with University funds would violate the New Mexico Anti-Donation Law and are specifically prohibited by corresponding University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 9: Political and Charitable Contributions. In addition, these expenses would also most likely constitute unnecessary wasteful spending under State Law. In New Mexico State Auditor statues, waste is defined as “…the act of using or expending resources carelessly, extravagantly, or to no purpose."(NMAC 2.2.2.7(W).
- Allowable Exception – Funds raised by Chartered Student Organizations through their own fundraising efforts, such as bake sales, etc, are not considered University funds and can be donated in accordance with that student groups wishes.
- Possible Allowable Alternatives - Try this Instead:
- An arrangement such as a Sponsorship in which the University receives equal or more legal consideration that directly benefits the University in exchange for our funds is allowable in accordance with University Administrative Policy 1040: Fundraising, Section 8.1: University Units. Ex – Receiving advertising, booth rental at events at an equal value or higher to our contribution payment.
- There is an extremely narrow Poverty exemption to the New Mexico Anti-Donation law, but such expenses would only be allowed if first reviewed and vetted by the Office of University Counsel.
- The Reason this is Unallowable – All University funds are required to be spent in a way that directly benefits the University. In general, University funds (and University property) cannot legally be given away to any organization or any individual, even if it appears to align with our mission. In general, donations made with University funds would violate the New Mexico Anti-Donation Law and are specifically prohibited by corresponding University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 9: Political and Charitable Contributions. In addition, these expenses would also most likely constitute unnecessary wasteful spending under State Law. In New Mexico State Auditor statues, waste is defined as “…the act of using or expending resources carelessly, extravagantly, or to no purpose."(NMAC 2.2.2.7(W).
