THE BILL ITSELF
HB 1475
Charitable Giving
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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 without potential penalty;
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authorizing a donor, or a donor's legal
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representative, to file a complaint within a specified
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timeframe if a charitable organization violates a
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donor-imposed restriction contained in an endowment
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agreement; specifying the venue where the complaint
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may be filed; providing that the complaint may be
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filed regardless of whether the endowment agreement
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expressly reserves a right to sue or enforce the
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agreement; prohibiting a donor or donor representative
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from seeking a judgment awarding damages; requiring a
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charitable organization to notify a donor, or a
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donor's legal representative, if it cannot fulfill a
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term in the endowment agreement and offer the donor,
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or the donor's legal representative, an alternative
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solution that closely matches the initial term in such
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endowment agreement; authorizing a charitable
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organization to obtain a judicial declaration of the
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rights and duties expressed in an endowment agreement;
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requiring the charitable organization to seek a
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judicial declaration in any suit brought under the act
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or by filing a complaint; authorizing a court to order
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one or more remedies consistent with the charitable
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purposes expressed in the endowment agreement if the
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court determines that a charitable organization
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violated a donor-imposed restriction in the endowment
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agreement; prohibiting the court from ordering the
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return of the donated funds to the donor or the
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donor's legal representative; providing construction;
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providing severability; creating s. 496.433, F.S.;
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providing legislative findings; prohibiting a state
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agency or a state official from imposing any annual
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filing or reporting requirements on certain
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organizations regulated or exempted from regulation
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under ch. 496, F.S., which are more burdensome than
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the requirements authorized by state law; providing
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applicability and construction; providing an effective
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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
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to 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 purpose 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 or of a
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charitable trust pursuant to the terms of an endowment agreement
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that may include donor-imposed restrictions or conditions
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governing the use of the contribution.
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(c) "Donor-imposed restriction" means a written statement
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within an endowment agreement which specifies requirements for
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the management or use of endowment funds.
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(d) "Endowment agreement" means a written agreement
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between a charitable organization and a donor or between a
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charitable trust and a donor regarding the contribution made by
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the donor and accepted by the charitable organization or the
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charitable trust, which agreement may include donor-imposed
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restrictions or other conditions governing the use of the
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contribution.
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(e) "Endowment fund" means an institutional fund 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 institution on a current basis. The
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term does not include assets that an institution designates as
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an endowment fund for its own use.
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(f) "Gift instrument" means a record or records, including
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an institutional solicitation, under which property is granted
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to, transferred to, or held by an institution as an
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institutional fund.
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(g) "Legal representative" means the administrator or
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executor of a person's estate; a surviving spouse if a court
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judgment has settled the accounts of the 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, personal property, or
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money, cryptocurrency, stocks, bonds, or any other asset or
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financial instrument.
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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 without potential
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penalty.
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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 6 years after discovery for breach of such agreement. The
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complaint may be filed in a court of general jurisdiction in the
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county where a charitable organization named as a party has its
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principal office or principal place of carrying out its
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charitable purpose, or in a court of the United States whose
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district includes such county. The complaint may be filed
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regardless of whether the endowment agreement expressly reserves
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a right to sue or enforce the agreement, and it may not seek a
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judgment awarding damages to the donor or donor representative.
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(c) If a charitable organization is unable to fulfill a
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term in the endowment agreement, the charitable organization
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must notify the donor, or the donor's legal representative,
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within 30 days after discovering it is unable to fulfill the
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terms and offer an alternative solution that closely matches the
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initial term in the endowment agreement.
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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 restrictions as to all of the actions
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the endowment agreement contemplates, including, but not limited
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to, the interpretation, performance, or enforcement of the
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agreement, and a determination of its validity. The charitable
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organization shall seek a judicial declaration in any suit
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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.
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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 an institution to modify a restriction on the
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management, investment, purpose, or use of an endowment fund in
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a manner permitted by the endowment agreement and 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
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to 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.