Senate Bill No. 844, known as the Safeguarding Endowment Gifts Act, introduces new legal provisions to protect donor-imposed restrictions on contributions made to charitable organizations and trusts. The bill defines key terms such as "charitable organization," "donor," "endowment agreement," and "donor-imposed restriction," establishing a framework for how these entities must manage contributions. It stipulates that charitable organizations cannot violate donor-imposed restrictions without facing penalties and outlines the process for donors or their legal representatives to file complaints in case of such violations.

Additionally, the bill mandates that if a charitable organization cannot fulfill the terms of an endowment agreement, it must notify the donor or their legal representative within thirty days and propose an alternative solution. The legislation also allows charitable organizations to seek judicial declarations regarding their rights and duties under endowment agreements. If a court finds that a violation has occurred, it can impose remedies aligned with the charitable purposes of the agreement but cannot order the return of donated funds. The act is set to take effect on November 1, 2025.