The "Safeguarding Endowment Gifts Act" aims to enhance the protection of donor-imposed restrictions on endowment agreements within charitable organizations in South Carolina. The bill prohibits these organizations from violating written donor restrictions unless specifically required or authorized by federal or state law. It mandates that if a charitable organization cannot fulfill the terms of an endowment agreement, they must notify the donor or their legal representative at least thirty days prior to utilizing the contribution, offering an alternative solution that aligns with the original terms. Additionally, the bill establishes judicial processes for donors to seek remedies if their restrictions are violated, including the ability to file complaints within six years of discovering a breach.

Furthermore, the act allows charitable organizations to seek judicial declarations regarding their rights and duties under endowment agreements, ensuring clarity in the interpretation and enforcement of these agreements. If a court finds that a charitable organization has violated a donor-imposed restriction, it may order remedies consistent with the charitable purposes of the endowment agreement, but cannot mandate the return of donated funds. The act also clarifies that it does not affect the authority of the attorney general to enforce endowment restrictions or alter existing rights to modify such restrictions as permitted by law. The bill reclassifies existing sections of the law, designating them as "General Provisions," and will take effect upon the Governor's approval.

Statutes affected:
02/24/2026: 34-6-10
Latest Version: 34-6-10