Author: Municipal Finance Legal Guidance
This month's Ask DLS features frequently asked questions concerning municipal celebrations. Please let us know if you have other areas of interest or send a question to cityandtown@dor.state.ma.us. We would like to hear from you.
How can a city or town fund municipal celebrations?
Under G.L. c. 44, § 53I, cities and towns can establish a special fund where appropriations can be made for any special celebrations or events, such as the upcoming 250th Anniversary celebration.
When can funds be appropriated into the special fund?
Municipalities can appropriate into the special fund in the five years preceding the celebration. Any other monies received in connection with the anniversary or special event will also be credited to the fund, for example the sale of commemorative items or admission charges.
When can funds be expended from the special fund?
Funds can be expended in the fiscal year preceding the celebration and the fiscal year after the celebration.
What happens if there are surplus funds remaining in the account after the celebration?
The remaining funds would close to the general fund.
How can a municipality properly fundraise for a public celebration?
DLS does not have jurisdiction over this matter. The municipality should contact the State Ethics Commission for further information.
If G.L. c. 44, § 53I was not utilized for a prior municipal celebration, what happens to the remaining surplus funds that the city or town received from various donors?
If G.L. c. 44, § 53I was not utilized, funds that were received as gifts should be credited to a gift account under G.L. c. 44, § 53A. Monies must be held and spent for their intended purpose. If the city or town cannot do so and the gifts cannot be returned, then the officials could consider initiating court action for expenditure direction from the court under the doctrine of cy pres.
Helpful Resources
City & Town is brought to you by:
Editor: Dan Bertrand
Editorial Board: Sean Cronin, Scott Ditto, Janie Dretler, Emily Izzo, Christopher Ketchen, Paula King, Jen McAllister, Jessica Sizer and Tony Rassias
| Date published: | June 4, 2026 |
|---|