Last updated 1 day ago. Our resources are updated regularly but please keep in mind that links, programs, policies, and contact information do change.
Governments fund operations primarily through taxes, but they can accept voluntary donations. This comes with significant restrictions.
Federal, state, and local rules governing donations exist to prevent corruption and undue influence while preserving democratic accountability. These laws create tension between citizens who want to contribute to public projects and strict regulations designed to protect the appropriations process.
Why the Federal Government Restricts Donations
The U.S. Constitution and federal laws create a structured system for managing public money. Congress controls how every dollar gets spent.
Congress Controls the Budget
The Appropriations Clause (Article I, Section 9, Clause 7) states that no money can be drawn from the Treasury without authorization by law. This means the executive branch and its agencies cannot spend money without Congress passing a specific law.
This “power of the purse” is a cornerstone of checks and balances. The legislative branch holds the executive branch accountable. If the President or federal agencies could fund operations through private donations, they could pursue policies without popular support and undermine democratic structure.
The Anti-Deficiency Act Enforces Spending Limits
The Anti-Deficiency Act enforces the Appropriations Clause through two main prohibitions.
Federal agencies cannot spend funds beyond what Congress appropriated. The budget is a hard limit.
Government officials cannot accept “voluntary services” except in emergencies involving safety or property protection. This matters because donations often involve more than simple transfers of value. A donation of services or money to pay for unappropriated expenses counts as illegal budget augmentation. It lets agencies accomplish more than Congress authorized.
The Act carries serious penalties, including fines and imprisonment for violators.
This prohibition addresses concerns about “free” gifts. A donated building needs future maintenance, utilities, and security funds. Donated software requires technical support and upgrades. These create ongoing costs that Congress never reviewed or approved.
Gifts Need Explicit Permission
The Government Accountability Office has ruled that agencies cannot accept gifts of goods or services unless Congress grants specific statutory authority. This rule prevents improper influence and ensures agencies operate within congressional limits.
Legal Ways to Donate to the Federal Government
Congress created specific channels for contributions. These channels align with appropriations principles and ensure transparency.
The General Fund: Gifts to the United States
The Treasury Department maintains an account called “Gifts to the United States,” established in 1843 for bequests and donations.
All donations are unconditional. Money goes into the general fund for any purpose Congress authorizes. Donors cannot restrict how funds are used.
Two ways to contribute:
Online: Use Pay.gov. The site accepts bank transfers (ACH), PayPal, Venmo, debit cards, or credit cards.
By Mail: Write a check or money order to “United States Treasury.” Note “Gift to the United States” in the memo line. Mail to: Gifts to the United States, U.S. Department of the Treasury, Reporting and Analysis Branch 2, P.O. Box 1328, Parkersburg, WV 26106-1328.
For tax deductibility questions, contact the IRS at 800-829-1040.
Reducing the Public Debt
Congress created a channel for citizens concerned about national debt under 31 U.S. Code § 3113.
Contributions to this fund are conditional. The law specifies what can be accepted:
Money: The Secretary of the Treasury accepts monetary gifts only to reduce public debt.
Government Obligations: Citizens can donate Treasury bonds, notes, or bills back to the government.
Interest: Donors can waive interest payments on government securities they own.
All contributions must reduce the debt. The Secretary cannot use these funds for anything else.
To donate online, use Pay.gov’s public debt reduction form. By mail, send checks to: Bureau of the Fiscal Service, Attn: Dept G, P.O. Box 2188, Parkersburg, WV 26106-2188. Write “Gift to reduce the debt held by the public” on the check.
The Treasury publishes a monthly report showing total contributions. In fiscal year 2024, citizens donated $2,889,587.07. In fiscal year 2023, contributions totaled $2,548,678.25.
Agency-Specific Donation Programs
Many federal agencies have congressional authority to accept gifts for their missions:
Department of the Interior: Manages 65 separate gift funds for entities like the National Park Service and Fish & Wildlife Service. Each park or refuge can maintain its own account. The National Park Service accepts donations for specific parks or general support. The U.S. Geological Survey accepts donations for scientific research and education.
Library of Congress: Accepts monetary donations and rare book collections to preserve cultural heritage.
Smithsonian Institution: Born from a gift and continues to accept donations to expand collections and exhibitions. The Institution was created from James Smithson’s bequest, a British scientist who left his entire estate to the United States in 1829 to found “an Establishment for the increase & diffusion of knowledge.”
Veterans Affairs: The Veterans Affairs Gift Fund supports medical care and veteran services.
Defense Department: Accepts donations through authorized military welfare societies and base-specific accounts. Donors can contribute to military museums, memorial funds, or emergency relief for service members.
NASA: Accepts gifts and bequests to advance space exploration.
Each agency has specific procedures. Contact the agency directly for details.
Working With Fiscal Agents
Some agencies partner with non-profit organizations that serve as fiscal agents. These organizations can accept tax-deductible donations and transfer funds to government agencies.
The National Park Foundation raises private funds for park projects. The Friends of the National Zoo supports the Smithsonian’s zoological programs. The National Fish and Wildlife Foundation facilitates conservation partnerships.
These arrangements give donors tax benefits while supporting government missions. Fiscal agents must comply with IRS regulations and cannot exert improper influence over agency operations.
Foreign Gift Rules
Federal law treats gifts from foreign sources differently. The Constitution’s Foreign Emoluments Clause (Article I, Section 9, Clause 8) prohibits federal officials from accepting any gift from a foreign government without congressional consent.
The Foreign Gifts and Decorations Act implements this constitutional provision. Federal employees cannot keep gifts from foreign governments or officials worth more than minimal value (currently $480). Employees must report these gifts and either return them or turn them over to their agency for disposal.
The State Department maintains a public database of foreign gifts reported by executive branch employees. This transparency prevents foreign influence over U.S. policy.
Historical Examples of Major Gifts
Private donations have built some of America’s most significant public institutions and monuments.
The Smithsonian Institution
James Smithson, a British scientist, left his entire estate to the United States in 1829. His will specified the bequest should found “an Establishment for the increase & diffusion of knowledge” in Washington, D.C.
Congress debated for a decade whether to accept the gift. Former President John Quincy Adams, then serving in the House of Representatives, championed the bequest. Congress finally accepted in 1836 and created the Smithsonian Institution in 1846.
The gift totaled approximately $508,318 in 1838 dollars, equivalent to over $15 million today. This became the foundation for what is now the world’s largest museum, education, and research complex.
The Statue of Liberty’s Pedestal
France donated the Statue of Liberty to the United States in 1886 to commemorate the alliance during the American Revolution. The gift included the statue itself, but the United States had to provide the pedestal.
Fundraising struggled. Congress appropriated only $56,500 of the estimated $250,000 needed. Private donations stalled until publisher Joseph Pulitzer launched a campaign in his newspaper, The New York World, in 1885.
Pulitzer used his platform to shame wealthy donors who hadn’t contributed and to encourage everyday Americans. He promised to print the name of every donor, regardless of amount. The campaign raised over $100,000 in five months from more than 120,000 contributors. Most gave less than a dollar.
This grassroots effort demonstrated that broad public participation could accomplish major national projects. The pedestal was completed, and the statue was dedicated on October 28, 1886.
The Washington Monument
The Washington National Monument Society formed in the 1830s and solicited small donations from the public. The Society limited contributions to $1 per person to encourage broad participation.
Construction began in 1848, but private funds were exhausted quickly. By 1854, with the monument at just 152 feet—less than a third of its planned height—the Society went bankrupt. Construction stopped.
The unfinished structure stood for over two decades. In 1876, on the centennial of the Declaration of Independence, Congress appropriated federal funds to complete the monument. The government took over ownership and responsibility.
The Washington Monument’s history shows the relationship between private initiative and public authority in creating shared spaces.
State and Local Government Rules
State and local governments operate under their own constitutions, statutes, and ordinances. There is no single national standard. Two principles appear consistently: the requirement of a public purpose and the need for transparency.
Public Purpose and Transparency
The “public purpose doctrine” is often in state constitutions. This doctrine prohibits governments from giving public funds to private individuals or organizations. When a government accepts a gift, it must be for a clear public purpose that benefits the community.
Most regulations ensure transparency through public meeting acknowledgments and financial reporting. These rules prevent “pay-to-play” corruption, where donations might secure preferential treatment from officials.
State and Local Variations
Rules vary dramatically across jurisdictions. The following table shows different approaches in several key areas.
Table: State & Local Donation Rules
| Jurisdiction | Key Authority/Rule | Approval Process | Key Prohibitions/Limits |
|---|---|---|---|
| Texas (State) | Agency must have specific statutory authority to accept gifts | Gifts valued at $500+ must be acknowledged by the agency’s governing board in a public meeting | Agency cannot accept a gift from any person or entity that is a party to a contested case before that agency until 30 days after a final decision |
| California (State) | All gifts of real or personal property to the state must be approved by the Director of Finance (Gov. Code 11005) | Formal request must be submitted to Department of Finance. Real property gifts also require Department of General Services approval | State constitution prohibits government from making gifts of public funds to private parties. State officials subject to strict dollar limits on personal gifts |
| Florida (State) | State law prohibits officials from soliciting or accepting any gift based on understanding that official action would be influenced | Gifts intended for a government entity can be accepted by an official on its behalf but must be promptly transferred to the entity | Public officials and employees generally cannot accept gifts valued at more than $100 from lobbyists, their employers, or state vendors. A 2025 law restricts donations from “foreign sources of concern” |
| New York City, NY | Regulations focus on campaign finance to combat “pay-to-play” corruption | Campaign contributions subject to strict disclosure and reporting overseen by Campaign Finance Board | Individuals and entities in the city’s “Doing Business Database” face lower campaign contribution limits than the general public |
| Chicago, IL | Detailed protocols for any gift received “on behalf of the City” requiring public reporting | Gifts must be reported to Board of Ethics and Comptroller within 10 days. Public gift logbook maintained on Mayor’s Office webpage | City officials and employees cannot accept non-cash gifts from a single source worth more than $50 in a calendar year |
Modern Crowdfunding for Public Projects
Digital platforms have made it easier for groups to pool contributions for public projects, continuing a long tradition of civic participation.
Supporting National Parks
Congressional appropriations often fall short of what national parks need for maintenance, education, and conservation. Non-profit partners like the National Park Foundation and Washington’s National Park Fund run campaigns to raise private funds.
The National Park Foundation’s “Protecting America’s Legacy” campaign aims to raise $300 million for park conservation projects.
This has historical roots. The Great Smoky Mountains National Park’s creation in the 1920s and 1930s was a massive crowdfunding effort. Land had to be purchased from thousands of private owners. North Carolina and Tennessee each committed $2 million, and the Rockefeller family pledged a $5 million matching grant, leaving a $1 million shortfall. A public campaign with families, businesses, and schoolchildren collecting pennies raised the final amount to establish the park.
From the Smithsonian to national parks, the nation’s greatest public assets have often resulted from private citizens initiating or supplementing projects while government ensures their permanence for future generations.
Our articles make government information more accessible. Please consult a qualified professional for financial, legal, or health advice specific to your circumstances.