No. CS/SB 1338
Charitable Giving; Prohibiting a charitable organization that accepts a contribution pursuant to a written donor-imposed restriction from violating the terms of that restriction; requiring a charitable organization to notify a donor, or a donor’s legal representative, if it cannot fulfill a term in the endowment agreement and offer the donor, or the donor’s legal representative, an alternative solution that closely matches the initial term in such endowment agreement; prohibiting a state agency or a state official from imposing any annual filing or reporting requirements on certain organizations regulated or exempted from regulation under ch. 496, F.S., which are more burdensome than the requirements authorized by state law, etc.
Plain English Summary
AI-GENERATEDCharitable organizations that accept a gift under a written donor restriction may no longer violate that restriction. Donors or their legal representatives can sue over a breach, but only after 90 days' notice and within 5 years of discovering it.
That lawsuit cannot win money damages, though. A donor can only recover a refund if the original agreement specifically reserved that right, so most breaches leave donors with no financial remedy even after winning in court.
When a charity determines it cannot keep a term of the agreement, it must tell the donor within 120 days and offer a comparable alternative, unless the agreement itself already limits that duty.
Separately, state agencies may not impose annual filing or reporting rules on regulated or exempt charities that go beyond what state law already requires, except for grant and contract conditions, fraud investigations, and enforcement actions.
AIA charitable organization that accepts a contribution under a written donor-imposed restriction in an endowment agreement may not violate the terms of that restriction, except where federal or state law specifically requires or authorizes doing so.
AIA donor or legal representative may sue over a violated restriction after 90 days' notice and within 5 years of discovering the breach, but the complaint cannot seek damages, and a refund is available only if the endowment agreement expressly reserved that right.
AIA state agency or official may not impose annual filing or reporting requirements on an organization regulated or exempted under chapter 496 that go beyond what Florida law already authorizes, unless federal law specifically requires or authorizes it.
AIIf a charity decides under its own internal policies that it cannot fulfill a term of the endowment agreement, it must tell the donor within 120 days and offer an alternative that closely matches the original term, unless the agreement itself limits this duty.
AIThe new donor-enforcement scheme does not limit the Attorney General's existing authority to enforce restrictions in endowment agreements, does not restrict a court's cy pres power, and does not change a charity's ability to modify a restriction when the donor or state trust law allows it.
AIA charitable organization may proactively seek a judicial declaration of its rights and duties under an endowment agreement, including interpreting, performing, or enforcing it or confirming its validity, rather than waiting for a donor dispute to force the issue.
AIThe new limit on state filing and reporting burdens does not apply to conditions attached to state grants or contracts, to fraud investigations, or to enforcement actions taken against specific nonprofit organizations.