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Charitable Contributions

A New York court ruled that a donor's widow had the legal authority to enforce the terms of a charitable contribution her husband had made to a charity.

Key point. Some courts have concluded that donors can legally enforce the terms of a designated contribution to charity if the charity diverts the contribution to some other purpose.

* A New York court ruled that a donor's widow had the legal authority to enforce the terms of a charitable contribution her husband had made to a charity. A recovered alcoholic devoted the last 40 years of his life to the treatment of alcoholism. In 1971 he announced his intention to make a gift to a hospital of $10 million for the establishment of an alcoholism treatment center. With $1 million from the first installment of the gift the hospital purchased a building for the rehabilitation program. According to the donor's widow, the hospital sought to avoid its obligations under the terms of the gift, and its relationship with the donor was an uneasy one. A year after the donor's death in 1994 the hospital informed ...

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Posted:
  • July 1, 2002

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