Abstract
In a number of recent controversies, the way the charities involved handled restricted gifts resulted in unhappy donors, negative publicity, and costly litigation. This paper examines several of these cases and then argues that donor intent is often more difficult to divine that many people have stated.
The law requires that a charity give effect to a restriction imposed by a donor. This paper examines the legal rules that govern donor-restricted gifts and considers the other reasons a charity will, in most cases, follow the donor's intent. The paper then describes several circumstances in which donor intent may not be clear or easy to determine. A donor's intent may be stated in general terms or the meaning of the ideas the donor had may have changed over time. If the donor is no longer alive, family members may remember the donor's intentions in ways that conflict with the charity's understanding of the gift. The passage of time not only makes the intent of the original donor more difficult to ascertain, but may also make changes in the original restrictions appropriate.
This paper makes suggestions for donors, charities, and the lawyers representing both in connection with restricted gifts. A donor's intent may not be as clear as either party thinks, and trying to pin down a donor's intent with respect to a particular gift may be more difficult—and less sensible—than an advisor may at first imagine. The paper makes specific suggestions for ways to address donor intent in a gift agreement and suggests that by working collaboratively donors and charities may better accomplish the worthy goals they all have in mind.
Recommended Citation
Susan N. Gary,
The Problems with Donor Intent: Interpretation, Enforcement, and Doing the Right Thing,
85
Chi.-Kent L. Rev.
977
(2010).
Available at:
https://scholarship.kentlaw.iit.edu/cklawreview/vol85/iss3/5
