Nathan Adams IV is a Partner in Holland &
Knight's
Tallahassee office
TIMELY TOPICS
Has your nonprofit received a donation for a restricted purpose
that has become impractical, impossible to achieve, wasteful or
even unlawful? A donor may restrict a contribution to a charity for
a particular use, provided the restriction does not prevent the
charity from freely using the transferred assets or the income
therefrom in furtherance of its charitable purposes. Beware of
unilaterally re-purposing such a donation, except in compliance
with the law. Nearly all states have adopted the Uniform Prudent
Management of Institutional Funds Act (UPMIFA) or some variation of
it. Under UPMIFA, a nonprofit may obtain either the release or
modification of gift restrictions with the donor's consent. If
a donor is not available (e.g., deceased) or refuses to consent to
the release or modification of the purpose of a fund or a
restriction on its use, and if the fund is "small and
old"
