Bill > SB134

This bill, called the Safeguarding Endowment Gifts Act, establishes legal protections for donors who contribute to charitable organizations through endowment funds. The bill defines key terms such as "charitable organization" (a tax-exempt entity under IRS section 501(c)(3)), "donor" (an individual or entity making a contribution), and "endowment fund" (a fund that is not wholly expendable on a current basis). It provides that charitable organizations cannot violate donor-imposed restrictions in written endowment agreements without potential legal consequences. If an organization is unable to fulfill a specific term in an agreement, they must notify the donor 90 days in advance and offer an alternative solution. Donors or their legal representatives can file a complaint within 3 years of discovering a violation, though they cannot seek monetary damages. The court may order remedies that are consistent with the original charitable purposes, but cannot require the return of donated funds. The bill applies retroactively to endowment agreements entered into since January 1, 1975, and does not limit the attorney general's enforcement powers or the institution's ability to modify restrictions under certain conditions. The legislation aims to provide donors with legal recourse if their specific giving instructions are not followed by recipient charitable organizations.

Justice

https://bills.legmt.gov/#/laws/bill/2/LC1823