| 10 | 6 | | relating to general provisions for nonprofit corporations, so as to enact the "Donor Intent2 |
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| 11 | 7 | | Protection Act"; to provide for definitions; to prohibit charitable organizations and charitable3 |
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| 12 | 8 | | trusts from violating the terms of charitable contributions made with donor imposed4 |
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| 13 | 9 | | restrictions, subject to exceptions; to provide for a cause of action; to provide for a5 |
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| 14 | 10 | | limitations period; to provide for venue; to provide for remedies; to provide for related6 |
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| 15 | 11 | | matters; to provide for an effective date and applicability; to repeal conflicting laws; and for7 |
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| 16 | 12 | | other purposes.8 |
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| 17 | 13 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 |
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| 18 | 14 | | SECTION 1.10 |
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| 19 | 15 | | Article 1 of Chapter 3 of Title 14 of the Official Code of Georgia Annotated, relating to11 |
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| 20 | 16 | | general provisions for nonprofit corporations, is amended by adding a new part to read as12 |
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| 21 | 17 | | follows:13 |
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| 23 | 19 | | - 1 - 24 LC 48 1312S |
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| 24 | 20 | | "Part 814 |
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| 25 | 21 | | 14-3-190.15 |
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| 26 | 22 | | This part shall be known and may be cited as the 'Donor Intent Protection Act.'16 |
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| 27 | 23 | | 14-3-191.17 |
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| 28 | 24 | | As used in this part, the term:18 |
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| 29 | 25 | | (1) 'Charitable organization' shall have the same meaning as provided in Code Section19 |
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| 30 | 26 | | 14-3-140, provided that such organization is recognized as tax exempt under Section20 |
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| 31 | 27 | | 501(c)(3) of the Internal Revenue Code.21 |
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| 32 | 28 | | (2) 'Charitable trust' shall have the same meaning as provided in Code Section22 |
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| 33 | 29 | | 53-12-170.23 |
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| 34 | 30 | | (3) 'Donor' means an individual or entity who has made a contribution of property or24 |
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| 35 | 31 | | money to either an existing endowment fund a new endowment fund of a charitable25 |
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| 36 | 32 | | organization or of a charitable trust pursuant to the terms of an endowment agreement26 |
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| 37 | 33 | | that may include donor imposed restrictions or conditions governing the use of the27 |
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| 38 | 34 | | contribution.28 |
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| 39 | 35 | | (4) 'Donor imposed restriction' means a provision of an endowment agreement that29 |
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| 40 | 36 | | specifies obligations of the charitable organization or of the charitable trust regarding the30 |
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| 41 | 37 | | management or use of the contribution made by the donor.31 |
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| 42 | 38 | | (5) 'Endowment agreement' means a written agreement between a charitable organization32 |
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| 43 | 39 | | and a donor or of a charitable trust and a donor regarding the contribution made by the33 |
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| 44 | 40 | | donor and accepted by the charitable organization or the charitable trust which may34 |
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| 45 | 41 | | include donor imposed restrictions or other conditions governing the use of the35 |
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| 46 | 42 | | contribution.36 |
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| 47 | 43 | | (6) 'Endowment fund' means an institutional fund, including any aggregate institutional37 |
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| 48 | 44 | | fund or part thereof, that under the terms of a gift instrument is not wholly expendable38 |
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| 50 | 46 | | - 2 - 24 LC 48 1312S |
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| 51 | 47 | | by the institution on a current basis; provided, however, that such term does not include39 |
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| 52 | 48 | | assets that an institution designates as an endowment fund for its own use.40 |
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| 53 | 49 | | (7) 'Gift instrument' means a record, including an institutional solicitation, under which41 |
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| 54 | 50 | | property is granted to, transferred to, or held by an institution as an institutional fund.42 |
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| 55 | 51 | | (8) 'Lineal descendants' means a donor's children, grandchildren, or great-grandchildren.43 |
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| 56 | 52 | | 14-3-192.44 |
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| 57 | 53 | | (a) Except as required or authorized by federal or state law or a valid court order, a45 |
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| 58 | 54 | | charitable organization or a charitable trust that accepts a contribution of property or money46 |
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| 59 | 55 | | pursuant to an endowment agreement containing a donor imposed restriction shall not47 |
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| 60 | 56 | | violate the terms of such restriction without potential penalty.48 |
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| 61 | 57 | | (b) If a charitable organization or a charitable trust violates a donor imposed restriction49 |
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| 62 | 58 | | contained in an endowment agreement, the donor, that donor's lineal descendants, or the50 |
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| 63 | 59 | | donor's legal representative may bring a civil action within four years after discovery of a51 |
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| 64 | 60 | | breach of the endowment agreement. Such civil action may be filed in the county where52 |
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| 65 | 61 | | a charitable organization or a charitable trust named as a party has its principal office or53 |
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| 66 | 62 | | principal place of carrying out its charitable purpose. Such civil action may be filed54 |
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| 67 | 63 | | regardless of whether the endowment agreement expressly reserves a right to sue or55 |
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| 68 | 64 | | enforce, and it shall not seek a judgment awarding damages to the plaintiff. In the event56 |
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| 69 | 65 | | no legal representative was named by the donor, the donor's lineal descendants may bring57 |
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| 70 | 66 | | a civil action.58 |
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| 71 | 67 | | (c) A charitable organization or a charitable trust may obtain a judicial declaration of rights59 |
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| 72 | 68 | | as to the terms of an endowment agreement, including any donor imposed restrictions, and60 |
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| 73 | 69 | | the actions the agreement contemplates, including but not limited to the interpretation,61 |
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| 74 | 70 | | performance, and enforcement of the agreement and determination of its validity. A62 |
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| 75 | 71 | | charitable organization or a charitable trust may do so by bringing a civil action and shall63 |
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| 76 | 72 | | seek such declaration in any suit brought against it under this part.64 |
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| 78 | 74 | | - 3 - 24 LC 48 1312S |
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| 79 | 75 | | (d) If the court determines, in an action brought pursuant to this part, that a charitable65 |
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| 80 | 76 | | organization or a charitable trust violated a donor imposed restriction, the court shall be66 |
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| 81 | 77 | | authorized to order one or more remedies consistent with the charitable purposes expressed67 |
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| 82 | 78 | | in the endowment agreement; provided, however, that the court shall not be authorized to68 |
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| 83 | 79 | | order the return of the contribution to the donor, the donor's lineal descendants, or the69 |
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| 84 | 80 | | donor's legal representative or estate."70 |
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| 85 | 81 | | SECTION 2.71 |
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| 86 | 82 | | This Act shall become effective July 1, 2024, and shall apply to any endowment agreement72 |
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| 87 | 83 | | entered into on or after such date.73 |
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| 88 | 84 | | SECTION 3.74 |
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| 89 | 85 | | All laws and parts of laws in conflict with this Act are repealed.75 |
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