Donation of proceeds of sale of utility, facility, or gift, conditions; donations after 12/31/15, distribution may be governed by IC 30-2-12; no reduction of property tax levies
Ind. Code § 36-1-14-1
in effectSec. 1. (a) This section does not apply to donations of gaming revenue to a public school endowment corporation under IC 20-47-1-3.
(b) As used in this section, "gaming revenue" means either of the following:
(1) Tax revenue received by a unit under IC 4-33-12-6, IC 4-33-13, or an agreement to share a city's or county's part of the tax revenue.
(2) Revenue received by a unit under IC 4-35-8.5 or an agreement to share revenue received by another unit under IC 4-35-8.5.
(c) Notwithstanding IC 8-1.5-2-6(d), a unit may donate the proceeds from the sale of a utility or facility or from a grant, a gift, a donation, an endowment, a bequest, a trust, or gaming revenue to a foundation under the following conditions:
(1) The foundation is a charitable nonprofit community foundation.
(2) The foundation retains all rights to the donation, including investment powers.
(3) The foundation agrees to do the following:
(A) Hold the donation as a permanent endowment.
(B) Distribute the income from the donation only to the unit as directed by resolution of the fiscal body of the unit.
(C) Return the donation to the general fund of the unit if the foundation:
(i) loses the foundation's status as a public charitable organization;
(ii) is liquidated; or
(iii) violates any condition of the endowment set by the fiscal body of the unit.
(d) This subsection applies only to the donation of proceeds described in subsection (c) that occurs after December 31, 2015. Notwithstanding subsection (c)(3)(B), the unit and the foundation may agree that distribution of the proceeds is governed by IC 30-2-12.
(e) The department of local government finance may not reduce a unit's property tax levy under IC 6-1.1-18.5 or any other law because of any of the following:
(1) The donation of the proceeds of money from the sale of a utility or a facility as provided in this section.
(2) A distribution from the endowment to the unit as provided in this section.
(3) A return of the donation to the general fund of the unit as provided in this section.
As added by P.L.313-1995, SEC.1. Amended by P.L.17-2000, SEC.2; P.L.1-2005, SEC.236; P.L.231-2005, SEC.51; P.L.1-2006, SEC.558; P.L.2-2006, SEC.190; P.L.142-2009, SEC.32; P.L.114-2017, SEC.1.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026