THE BILL ITSELF
CS/SB 1338
Charitable Giving
Florida Senate - 2026 CS for SB 1338 By the Committee on Rules; and Senator Burton 595-02952-26 20261338c1
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A bill to be entitled
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An act relating to charitable giving; creating s.
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496.432, F.S.; providing legislative findings;
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defining terms; prohibiting a charitable organization
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that accepts a contribution pursuant to a written
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donor-imposed restriction from violating the terms of
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that restriction; authorizing a donor, or a donor’s
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legal representative, to file a complaint within a
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specified timeframe if a charitable organization
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violates a donor-imposed restriction contained in an
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endowment agreement; specifying the venue where the
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complaint may be filed; providing that the complaint
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may be filed regardless of whether the endowment
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agreement expressly reserves a right to sue or enforce
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the agreement; providing an exception; prohibiting a
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donor or donor representative from seeking a judgment
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awarding damages; authorizing such a donor or donor
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representative to seek a refund of all or a portion of
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the donated funds under certain circumstances;
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requiring a charitable organization to notify a donor,
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or a donor’s legal representative, if it cannot
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fulfill a term in the endowment agreement and offer
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the donor, or the donor’s legal representative, an
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alternative solution that closely matches the initial
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term in such endowment agreement; providing an
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exception; authorizing a charitable organization to
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obtain a judicial declaration of the rights and duties
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expressed in an endowment agreement; authorizing the
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charitable organization to seek a judicial declaration
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in any suit brought under the act or by filing a
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complaint; authorizing a court to order one or more
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remedies consistent with the charitable purposes
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expressed in the endowment agreement if the court
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determines that a charitable organization violated a
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donor-imposed restriction in the endowment agreement;
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prohibiting the court from ordering the return of the
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donated funds to the donor or the donor’s legal
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representative; providing an exception; providing
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construction; providing severability; creating s.
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496.433, F.S.; providing legislative findings;
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prohibiting a state agency or a state official from
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imposing any annual filing or reporting requirements
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on certain organizations regulated or exempted from
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regulation under ch. 496, F.S., which are more
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burdensome than the requirements authorized by state
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law; providing applicability and construction;
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providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Section 496.432, Florida Statutes, is created to
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read:
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496.432 Safeguarding Endowment Gifts Act.—
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(1) LEGISLATIVE FINDINGS.—The Legislature finds that it is
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necessary to provide legal recourse to individual charitable
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donors when their giving restrictions are not followed by a
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recipient charitable organization according to an endowment
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agreement.
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(2) DEFINITIONS.—As used in this section, the term:
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(a) “Charitable organization” means an organization
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organized and operated exclusively for religious, charitable,
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scientific, literary, educational, testing for public safety, or
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other specified purposes and that is tax exempt from federal
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income tax as an entity described in s. 501(c)(3) of the
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Internal Revenue Code.
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(b) “Donor” means an individual or entity that has made a
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contribution of property or money to an existing endowment fund
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or a new endowment fund of a charitable organization pursuant to
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the terms of an endowment agreement that may include donor
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imposed restrictions governing the contribution.
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(c) “Donor-imposed restriction” means a written statement
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within an endowment agreement which specifies restrictions or
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conditions on the management, investment, purpose, or use of
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endowment funds.
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(d) “Endowment agreement” means a written agreement between
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a charitable organization and a donor regarding the contribution
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made by the donor to an existing endowment fund or a new
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endowment fund of a charitable organization, which agreement may
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include donor-imposed restrictions.
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(e) “Endowment fund” means a fund held exclusively for a
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charitable purpose, other than program-related assets, or part
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thereof which, under the terms of a gift instrument, is not
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wholly expendable by the charitable organization on a current
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basis. The term does not include assets that a charitable
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organization designates as an endowment fund for its own use.
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(f) “Gift instrument” means a record or records, including
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a charitable solicitation, under which property is granted to,
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transferred to, or held by a charitable organization as a fund
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held exclusively by a charitable purpose, other than program
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related assets.
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(g) “Legal representative” means the administrator or
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personal representative of a person’s estate, or a person
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designated in an endowment agreement, whether or not born at the
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time of such designation, to act in place of a party to the
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agreement for all matters expressed in the agreement and all of
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the actions it contemplates, including, but not limited to,
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interpreting, performing, and enforcing the agreement and
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defending its validity.
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(h) “Property” means real property, tangible or intangible
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personal property, or any other asset.
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(3) PROTECTIONS AFFORDED.—
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(a) Except where specifically required or authorized by
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federal or state law, a charitable organization that accepts a
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contribution pursuant to a written donor-imposed restriction may
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not violate the terms of that restriction.
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(b) If a charitable organization violates a donor-imposed
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restriction contained in an endowment agreement, the donor, or
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the donor’s legal representative, 90 days after notifying the
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charitable organization of the breach, may file a complaint
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within 5 years after discovery for breach of such agreement. The
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complaint may be filed in the circuit court where a charitable
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organization’s principal office is or was last located or, if
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none, where its registered office is or was last located. The
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complaint may be filed regardless of whether the endowment
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agreement expressly reserves a right to sue or enforce the
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agreement, unless other language in the endowment agreement
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expressly waives this right. The complaint may not seek a
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judgment awarding damages to the donor or donor representative,
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but it may seek a refund of all or a portion of the donated
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funds if the donor expressly reserved a right to a refund in the
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endowment agreement.
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(c) If a charitable organization determines in accordance
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with its internal policies that it is unable to fulfill a term
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in the endowment agreement, the charitable organization must
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notify the donor, or the donor’s legal representative, within
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120 days after such determination that it is unable to fulfill
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the terms and must offer an alternative solution that closely
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matches the initial term in the endowment agreement, unless
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other language in the endowment agreement limits this
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requirement.
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(d) A charitable organization may obtain a judicial
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declaration of the rights and duties expressed in an endowment
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agreement containing donor-imposed restrictions as to all of the
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actions the endowment agreement contemplates, including, but not
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limited to, the interpretation, performance, or enforcement of
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the agreement, and a determination of its validity. The
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charitable organization may seek a judicial declaration in any
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suit brought under this section, or by filing a complaint.
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(e) If the court determines that a charitable organization
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violated a donor-imposed restriction in an endowment agreement,
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the court may order one or more remedies consistent with the
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charitable purposes expressed in the endowment agreement. The
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court may not order the return of donated funds to the donor or
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the donor’s legal representative unless a right to a refund is
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expressly reserved by the donor in the endowment agreement.
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(f) This act does not affect the authority of the Attorney
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General to enforce any restriction in an endowment agreement;
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limit the application of the judicial power of cy pres; or alter
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the right of a charitable organization to modify a restriction
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on the management, investment, purpose, or use of an endowment
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fund in a manner expressly permitted by the donor in the
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endowment agreement or in a manner permitted by the Florida
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Uniform Prudent Management of Institutional Funds Act created in
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s. 617.2104.
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(4) SEVERABILITY.—If any provision of this section or its
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application to any person or circumstance is held invalid, the
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invalidity does not affect other provisions or applications of
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the section which can be given effect without the invalid
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provision or application, and to this end the provisions of this
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section are declared severable.
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Section 2. Section 496.433, Florida Statutes, is created to
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read:
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496.433 Charity Protection Act.—
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(1) LEGISLATIVE FINDINGS.—The Legislature finds that it is
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necessary to minimize burdens on the charitable sector and to
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create a grantmaking environment centered on effectiveness and
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fiscal impact on charitable organizations.
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(2) PROTECTIONS AFFORDED.—
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(a) Except where specifically required or authorized by
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federal law, a state agency or state official may not impose any
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annual filing or reporting requirements on an organization
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regulated or specifically exempted from regulation under this
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chapter which are more burdensome than the requirements
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authorized by Florida law.
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(b) This subsection does not apply to state grants or
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contracts or to fraud investigations.
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(c) This subsection does not restrict enforcement actions
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against specific nonprofit organizations.
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Section 3. This act shall take effect July 1, 2026.