A New Kansas Law Protects Donor Intent

Earlier this year, in a landmark action, the Kansas legislature passed the Donor Intent Protection Act, which helps ensure that donors’ wishes are respected when they make a charitable gift as an endowment. This is a significant step forward for philanthropy, as it will help to build trust between donors and beneficiaries, on campus and elsewhere.

Donor-intent protections are intended to uphold the details of an explicit written agreement between a donor and a charitable organization. Such agreements typically specify how the endowed funds will be used, such as for a specific program or purpose. When a donor makes a gift to an endowment with specific intentions, it is important that those intentions be respected.

There are a number of reasons why this is so. First, donor-intent protections help ensure that donors’ wishes are carried out. When donors make a gift, they are entrusting their money to a charitable organization with the expectation that it will be used for the purpose they intended. Donor-intent protections help to guarantee that this trust is not betrayed.

Second, donor-intent protections help build trust between donors and beneficiaries. When donors know their wishes will be respected, they are more likely to give. This is good for both donors and beneficiaries, as it helps to ensure that charitable organizations have the resources they need to carry out their missions.

Third, donor-intent protections help promote transparency and accountability. When charitable organizations are required to adhere to donors’ intent, it helps to guarantee that they are using donors’ money in a responsible and ethical way. This is important for both donors and the public, as it helps to hold charitable organizations accountable for their actions.

2 posted on 07/21/2023 7:01:44 AM PDT by BitWielder1 (I'd rather have Unequal Wealth than Equal Poverty.)

I can see the other side of this - some donors will be so unreasonable in their ‘intentions’ that they may find themselves being rejected.

Over time, too many highly restricted funds could cause a lot of overhead and waste by organizations managing restrictions.

3 posted on 07/21/2023 7:27:10 AM PDT by larrytown (A Cadet will not lie, cheat, steal, or tolerate those who do. Then they graduate...)

This is why I no longer donate to my alma mater. When the Senior Class Gift matured at our 5 year anniversary, the direction was to use it to create an on-campus pub with both alcoholic and non-alcoholic beverages.

Instead, they used it to build a locker room for the women’s field hockey team. . .

4 posted on 07/21/2023 7:46:53 AM PDT by Salgak (You're in Strange Hands with Tom Stranger. . . .)

Leftists make careers out of getting on the board or in control of charitable institutions and the like. For fifty years we have had leftist in control of the Ford Foundation in a manner that would have revolted Henry Ford.

5 posted on 07/21/2023 7:53:28 AM PDT by KC Burke (Diversity, Inclusion and Equity is not another way to spell GOD but it is a way to spell DIE.)

This is exactly what happens to ALL well-funded non-profits. Some charismatic executive leader comes in to a group of semi- or non-engaged board members, and wins enough over to start loading their buddies and fellow-travelers into the board, replacements for old exiting members, etc.

It is inevitable and unavoidable.

6 posted on 07/21/2023 8:11:47 AM PDT by larrytown (A Cadet will not lie, cheat, steal, or tolerate those who do. Then they graduate...)

What a world we live in where laws are necessary to ensure people do the right thing.

7 posted on 07/21/2023 8:21:14 AM PDT by metmom (He who testifies to these things says, “Surely I am coming soon.” Amen. Come, Lord Jesus.)

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