273.155 Definitions for section -- Effect of donor-imposed restrictions on charitable
603 words·~3 min read·
/ky/273-155A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
organizations that accept contribution of property or money -- Right of action
-- Declaration of rights -- Remedies.
(1)As used in this section:
(a)"Charitable organization" means an entity organized and operated exclusively
for religious, charitable, scientific, testing for public safety, literary,
educational, or other specified purposes and that is recognized as tax exempt
under Section 501(c)(3) of the Internal Revenue Code;
(b)"Donor" means an individual who has made a contribution of property or
money to either an existing endowment fund, or to establish a new
endowment fund, of a charitable organization pursuant to the terms of an
endowment agreement that may include donor-imposed restrictions or
conditions governing the use of the contribution;
(c)"Donor-imposed restriction" means a provision of an endowment agreement
that specifies obligations of the charitable organization regarding the
management or use of the contribution made by the donor;
(d)"Endowment agreement" means a written agreement between a charitable
organization and a donor regarding the contribution made by the donor and
accepted by the charitable organization which may include donor-imposed
restrictions or other conditions governing the use of the contribution;
(e)"Endowment fund" means an institutional fund, including any aggregate
institutional fund or part thereof, that under the terms of a gift instrument is
not wholly expendable by the institution on a current basis;
(f)"Gift instrument" means a record, including an institutional solicitation, under
which property is granted to, transferred to, or held by an institution as an
institutional fund; and
(g)"Legal representative" means the administrator or executor of an individual's
estate, a surviving spouse if there is a judicial settlement of the accounts of an
individual's estate, or any living, named individual designated in an
endowment agreement to act in place of a party to an endowment agreement
with respect to all matters expressed in the endowment agreement and all
actions that the agreement contemplates, including but not limited to
interpreting, performing, and enforcing any provisions of the endowment
agreement and defending their validity.
(2)Except as required or authorized by federal or state law, or valid court order, a
charitable organization that accepts a contribution of property or money pursuant to
an endowment agreement containing a donor-imposed restriction shall not violate
the terms of that restriction.
(a)If a charitable organization violates a donor-imposed restriction, the donor or
that individual's legal representative, ninety
(90)days after notification to the
charitable organization, may bring a civil action which shall be limited to
appropriate declaratory and injunctive relief within four
(4)years after
discovery of a breach of the endowment agreement.
(b)The civil action may be filed in the county where a charitable organization
named as a party has its principal office or principal place of carrying out its
charitable purpose.
(c)The civil action seeking relief may be filed regardless of whether the
agreement expressly reserves a right to sue or enforce, and it shall not seek a
judgment awarding monetary damages to the plaintiff.
(4)A charitable organization may obtain a judicial declaration of rights as to the terms
of an endowment agreement, including any donor-imposed restrictions, and the
actions the agreement contemplates, including but not limited to the interpretation,
specific performance, and enforcement of the agreement and determination of its
validity by bringing a civil action under this section.
(5)If the court determines that a charitable organization violated a donor-imposed
restriction, the court may order one
(1)or more remedies consistent with the
charitable purposes expressed in the endowment agreement. The court shall not
order the return of the contribution to the donor or the donor’s legal representative
or estate.