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The House Committee on Judiciary offers the following substitute to SB 433:
A BILL TO BE ENTITLED
AN ACT
To amend Article 1 of Chapter 3 of Title 14 of the Official Code of Georgia Annotated,1
relating to general provisions for nonprofit corporations, so as to enact the "Donor Intent2
Protection Act"; to provide for definitions; to prohibit charitable organizations and charitable3
trusts from violating the terms of charitable contributions made with donor imposed4
restrictions, subject to exceptions; to provide for a cause of action; to provide for a5
limitations period; to provide for venue; to provide for remedies; to provide for related6
matters; to provide for an effective date and applicability; to repeal conflicting laws; and for7
other purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
Article 1 of Chapter 3 of Title 14 of the Official Code of Georgia Annotated, relating to11
general provisions for nonprofit corporations, is amended by adding a new part to read as12
follows:13
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"Part 814
14-3-190.15
This part shall be known and may be cited as the 'Donor Intent Protection Act.'16
14-3-191.17
As used in this part, the term:18
(1) 'Charitable organization' shall have the same meaning as provided in Code Section19
14-3-140, provided that such organization is recognized as tax exempt under Section20
501(c)(3) of the Internal Revenue Code.21
(2) 'Charitable trust' shall have the same meaning as provided in Code Section22
53-12-170.23
(3) 'Donor' means an individual or entity who has made a contribution of property or24
money to either an existing endowment fund a new endowment fund of a charitable25
organization or of a charitable trust pursuant to the terms of an endowment agreement26
that may include donor imposed restrictions or conditions governing the use of the27
contribution.28
(4) 'Donor imposed restriction' means a provision of an endowment agreement that29
specifies obligations of the charitable organization or of the charitable trust regarding the30
management or use of the contribution made by the donor.31
(5) 'Endowment agreement' means a written agreement between a charitable organization32
and a donor or of a charitable trust and a donor regarding the contribution made by the33
donor and accepted by the charitable organization or the charitable trust which may34
include donor imposed restrictions or other conditions governing the use of the35
contribution.36
(6) 'Endowment fund' means an institutional fund, including any aggregate institutional37
fund or part thereof, that under the terms of a gift instrument is not wholly expendable38
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by the institution on a current basis; provided, however, that such term does not include39
assets that an institution designates as an endowment fund for its own use.40
(7) 'Gift instrument' means a record, including an institutional solicitation, under which41
property is granted to, transferred to, or held by an institution as an institutional fund.42
(8) 'Lineal descendants' means a donor's children, grandchildren, or great-grandchildren.43
14-3-192.44
(a) Except as required or authorized by federal or state law or a valid court order, a45
charitable organization or a charitable trust that accepts a contribution of property or money46
pursuant to an endowment agreement containing a donor imposed restriction shall not47
violate the terms of such restriction without potential penalty.48
(b) If a charitable organization or a charitable trust violates a donor imposed restriction49
contained in an endowment agreement, the donor, that donor's lineal descendants, or the50
donor's legal representative may bring a civil action within four years after discovery of a51
breach of the endowment agreement. Such civil action may be filed in the county where52
a charitable organization or a charitable trust named as a party has its principal office or53
principal place of carrying out its charitable purpose. Such civil action may be filed54
regardless of whether the endowment agreement expressly reserves a right to sue or55
enforce, and it shall not seek a judgment awarding damages to the plaintiff. In the event56
no legal representative was named by the donor, the donor's lineal descendants may bring57
a civil action.58
(c) A charitable organization or a charitable trust may obtain a judicial declaration of rights59
as to the terms of an endowment agreement, including any donor imposed restrictions, and60
the actions the agreement contemplates, including but not limited to the interpretation,61
performance, and enforcement of the agreement and determination of its validity. A62
charitable organization or a charitable trust may do so by bringing a civil action and shall63
seek such declaration in any suit brought against it under this part.64
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(d) If the court determines, in an action brought pursuant to this part, that a charitable65
organization or a charitable trust violated a donor imposed restriction, the court shall be66
authorized to order one or more remedies consistent with the charitable purposes expressed67
in the endowment agreement; provided, however, that the court shall not be authorized to68
order the return of the contribution to the donor, the donor's lineal descendants, or the69
donor's legal representative or estate."70
SECTION 2.71
This Act shall become effective July 1, 2024, and shall apply to any endowment agreement72
entered into on or after such date.73
SECTION 3.74
All laws and parts of laws in conflict with this Act are repealed.75
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