Restricted Gifts

Endowments and quasi-endowments help organizations establish long-term financial stability. This guide explains the basics; provides links to resources that address creating, managing, and fundraising for these funds; and describes the practices of 10 land trusts. WeConservePA guide. 6 pages.

Donors of land, cash, or other property may desire to place restrictions on a gift to ensure it is used only for specific purposes. To what extent might such restrictions limit or disallow a charitable tax deduction? What should a donor consider before making a restricted gift? WeConservePA guide. 5 pages.

This brief argument against the use of restricted gifts originally appeared in Third Sector on August 9, 2001.

Charitable organizations should be aware of the issues that come with gifts of cash, land, or other property restricted to a particular purpose rather than an organization’s general purposes. They should understand the need for good communications with donors, be ready to handle the management challenges, and take care to avoid inadvertently imposing restrictions on gifts in their solicitations. WeConservePA guide. 10 pages.

Excerpt from the introduction: "A given donor's interests become more pronounced, or at least her objectives become more particularly identifiable, when the donor makes her contribution in the form of a restricted gift. A restricted gift is one with respect to which the donor has specified certain terms and conditions that are to govern the administration and/or application of the gifted assets. The donor's interests, in this regard, include a general desire "[t]o be assured [that her] gifts will be used for the purpose for which they were given." The overriding issue is thus one of honoring donor intent. As time passes after the inception of the gift, the issue is often less favorably characterized as one of enduring and potentially unwise dead-hand control." 41 pp.

Sample gift agreement that can be adapted by land trusts to use for cash donations to fund a particular project. Includes provision regarding naming a place after the donor.

Sample gift agreement for cash donations that can be adapted and modified by conservation organizations.