Minimize or Avoid Problems when Abandoning Projects with Designated Funds
Minimize or Avoid Problems when Abandoning Projects with Designated Funds

Churches that solicit funds for designated projects face difficult choices when they abandon a project and are left with the task of disposing of funds that were donated for that project. These problems can be avoided if the church simply includes a statement similar to the following when soliciting funds for a specific project:

By contributing to this project, donors acknowledge that the church has full authority to apply contributions designated for this project to other purposes in the event the project is canceled or oversubscribed.

Such a statement should be printed on special offering envelopes used for the project, or on any other materials, so long as they provide adequate notice to donors of the policy and reflect donors’ consent to it.

For more on this topic, see this case analysis by Richard Hammar.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."

Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

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