The Safeguarding Endowment Gifts Act establishes legal protections for donors who impose restrictions on their contributions to charitable organizations. It defines key terms such as "charitable organization," "donor," "donor-imposed restriction," and "endowment agreement," which outline the framework for how endowments and gifts are managed. The Act stipulates that charitable organizations must adhere to donor-imposed restrictions and provides a mechanism for donors or their legal representatives to file complaints in cases of violation. Specifically, donors can file a complaint within three years of discovering a breach, following a 90-day notification period to the organization.

Additionally, the Act allows charitable organizations to seek judicial declarations regarding their rights and duties under endowment agreements. If a court finds that a charitable organization has violated a donor-imposed restriction, it can order remedies aligned with the charitable purposes of the agreement, but cannot mandate the return of funds to the donor. The Act also clarifies that it does not affect the authority of the attorney general or the application of existing laws regarding the management of endowment funds. Importantly, the Act is effective immediately upon passage and applies retroactively to endowment agreements made since January 1, 1975.