The proposed legislation, known as the Safeguarding Endowment Gifts Act, establishes new regulations for charitable organizations regarding the management of endowment funds. It defines key terms such as "charitable organization," "donor," and "donor-imposed restriction," and prohibits organizations from using funds in a manner inconsistent with donor-imposed restrictions. The bill allows donors or their legal representatives to file complaints if a charitable organization violates these restrictions, requiring organizations to notify donors within thirty days if they are unable to fulfill the terms of an endowment agreement.

Additionally, the act outlines the remedies available for violations, including the possibility for a court to order remedies consistent with the charitable purposes of the endowment agreement, but it explicitly states that courts cannot order the return of donated funds. The legislation also clarifies that it does not affect the authority of the Office of the Attorney General or alter existing rights under other relevant laws. The act is set to take effect on November 1, 2025.