Baker Hostetler Cleveland attorneys Ellen E. Halfon and Chad W. Makuch authored, “Restricted Gifts: Preserving Donor Intent and Institutional Flexibility,” which appeared in Vol. 3 No.5 of the December Issue of Bar Journal of the Cleveland Metropolitan Bar Association. The article details the steps donors can take to ensure that their charitable gifts are used for their intended purpose.
In the article, the authors urge donors to carefully consider short and long term goals with respect to a prospective gift. They say a mutual understanding of these goals and careful documentation in a written gift instrument can provide satisfaction to the donor and the charity.
Charities should ask about the donor’s “mission” and related restrictions that might further the donor’s goals; they should have a contingency plan to modify the purpose of the donation if there is a change of circumstances, need, or mission; they should clarify the donor’s time horizon for the gift; and determine if donor recognition is integral.
The authors also recommend that donors and development officers be mindful of the need for donors to have their own legal representation when negotiating the terms of restricted gifts.
VIEW FULL ARTICLE