Archie C. Epps III, dean of students, decided yesterday to allow Francis T. Crimmins '77, a candidate for the Massachusetts state legislature, to keep money raised for him by a Harvard-Radcliffe Democrats Club dance although University regulations prohibit use of Harvard facilities for political fund-raising.

Epps met yesterday with Crimmins, Thomas M. Keane '78, president of the club, and several other club members to discuss what was to be done with the approximately $120 given to Crimmins by the club.

Didn't Know

"We will permit Crimmins to retain the funds, but such fund-raising will be prohibited in the future," Epps said after the meeting, adding that "because the students didn't know it we will let it pass."

"We acted in good faith," Keane said yesterday. When the executive committee of the club voted to hold the dance for Crimmins they assumed it was not a violation, he said.

"The question was not brought up as to whether or not Crimmins had mentioned [to Epps' office] that he was raising funds for a political campaign," Keane said.

Crimmins, a candidate from Stoughton, said yesterday that it had not occurred to him to tell Epps' office that the dance's purpose was to raise campaign funds. "The question just didn't come up," he said.

Epps said that direct contributions by Harvard clubs to political candidates are forbidden in order to maintain the University's tax-exempt status. Clubs may pay the expenses of their members who work in a campaign but may not make direct cash contributions, he said.

"The point is that the activity is the club's activity," he said. "They may use the money they have raised for the purposes of their organization."