Question: Our high school needs 18 volunteer proctors for an AP test being given on a Saturday. The person organizing the test asked if she could purchase $100 gift certificates with the money in the ASB AP Test account to use as an incentive to get volunteers. Wouldn't that be considered a gift of public funds? I suggested that they solicit gift card donations or pay them out of the principal's budget. Am I correct in my assumptions? Are proctors for AP tests normally volunteers?

Response:  Questions often arise about the giving of gifts, which has a personal as opposed to public character. Contrary to what often occurs in the field, gifts are not allowable, even if the amount is small. Gift certificates are ordinarily characterized as gifts of public funds even when purchased for an event with a public purpose, because they confer a tangible private benefit on an individual. To avoid making a gift of public funds with gift certificates, ask merchants or individuals to donate gift certificates. While some school administrators may feel that the school site or district benefits from positive relationships established by sending gifts to students, parents, board members or others, the real public relations value is of primary benefit to the respective individual leaders involved, not to the school entity itself as an institution. If students want to give gifts, use private funds, not public funds.

Whether the funds come from ASB or the principal's discretionary account, the rules are the same as they would both be coming from "district" funds. But, if the PTA or a booster club wants to buy the gift certificates, that's a different story, as they do not have the gift of public funds rules.

9/14/09