The "Safeguarding Endowment Gifts Act" aims to enhance the protection of donor-imposed restrictions on endowment gifts made to 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, it must notify the donor or their legal representative at least thirty days in advance and propose an alternative solution. 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 bill 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 order remedies that align with the charitable purposes of the agreement, but it 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 the endowment agreement. The provisions of this act will take precedence over any conflicting statutes and will take effect upon the Governor's approval.

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