14-3-192. Violating the terms of charitable contributions made with donor imposed restrictions.

Except as required or authorized by federal or state law or a valid court order, a charitable organization or a charitable trust that accepts a contribution of property or money pursuant to an endowment agreement containing a donor imposed restriction shall not violate the terms of such restriction without potential penalty.#

If a charitable organization or a charitable trust violates a donor imposed restriction contained in an endowment agreement, the donor, that donor’s lineal descendants, or the donor’s legal representative may bring a civil action within four years after discovery of a breach of the endowment agreement. Such civil action may be filed in the county where a charitable organization or a charitable trust named as a party has its principal office or principal place of carrying out its charitable purpose. Such civil action may be filed regardless of whether the endowment agreement expressly reserves a right to sue or enforce, and it shall not seek a judgment awarding damages to the plaintiff. In the event no legal representative was named by the donor, the donor’s lineal descendants may bring a civil action.#

A charitable organization or a charitable trust may obtain a judicial declaration of rights as to the terms of an endowment agreement, including any donor imposed restrictions, and the actions the agreement contemplates, including but not limited to the interpretation, performance, and enforcement of the agreement and determination of its validity. A charitable organization or a charitable trust may do so by bringing a civil action and shall seek such declaration in any suit brought against it under this part.#

If the court determines, in an action brought pursuant to this part, that a charitable organization or a charitable trust violated a donor imposed restriction, the court shall be authorized to order one or more remedies consistent with the charitable purposes expressed in the endowment agreement; provided, however, that the court shall not be authorized to order the return of the contribution to the donor, the donor’s lineal descendants, or the donor’s legal representative or estate.#