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Can board change donor intent?

  • 1.  Can board change donor intent?

    Posted 12-06-2019 11:32 AM
    Hello, question for the experts! The community volunteers are fundraising for the hospital foundation aimed to cover patient medical expenses, the leaders of those community volunteers are also the board members of the hospital foundation. Is it ok for the board members to later change the donor intent on those funds to something like cancer research? My gut feeling is no but just want to hear other people's opinion.

    Thanks so much!
    Sisi


    ------------------------------
    Sisi Deng
    Senior Accountant, Foundation
    Seattle Childrne's Hospital
    Sisi.Deng@seattlechildrens.org
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  • 2.  RE: Can board change donor intent?

    Posted 12-06-2019 11:35 AM
    Typically no.  Essentially the donor has entered into a legal contract with you when they have specified a use - and you confirm that back in a receipt.  Only the donor can change the designation after that - or the Attorney General if the donor or legal representative is not available.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Can board change donor intent?

    Posted 12-06-2019 12:53 PM
    That being said, unrestricted donations can be board designated.





  • 4.  RE: Can board change donor intent?

    Posted 12-06-2019 02:31 PM
    Not if they are specified by a donor to go to an unrestricted (annual) fund).  However, unDESIGNATED funds can be allocated by the Board.  Usually, though, institutions have policies in place that direct where undesignated funds go upon receipt.  Usually, that is to the unrestricted annual fund when below a certain dollar amount or to a quasi-endowment when above that amount.  It is the latter, then, the Board can redirect.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 5.  RE: Can board change donor intent?

    Posted 12-10-2019 04:04 PM

    Does anyone have experience submitting the petition to the Attorney General to request a change to the fund designation?  Is this a lengthy process?

     

     

    Thanks,

    Erin

     

    Erin Genide David

    egenide@colum.edu

    O: 312-369-7589