(a)  If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.

will 560x170

Need help with a review of a will?
Have it reviewed by a lawyer, get answers to your questions and move forward with confidence.
Connect with a lawyer now

Terms Used In Rhode Island General Laws 18-12.1-6

  • Charitable purpose: means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of a governmental purpose, or any other purpose the achievement of which is beneficial to the community. See Rhode Island General Laws 18-12.1-2
  • Donor: The person who makes a gift.
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Gift instrument: means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund. See Rhode Island General Laws 18-12.1-2
  • Institution: means :

    (i)  a person, other than an individual, organized and operated exclusively for charitable purposes;

    (ii)  a government or governmental subdivision, agency, or instrumentality, to the extent that it holds funds exclusively for a charitable purpose; or

    (iii)  a trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated. See Rhode Island General Laws 18-12.1-2

  • Institutional fund: means a fund held by an institution exclusively for charitable purposes. See Rhode Island General Laws 18-12.1-2
  • Record: means information that is inscribed on a tangible medium, or that is stored in an electronic or other medium, and is retrievable in perceivable form. See Rhode Island General Laws 18-12.1-2

(b)  The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of restriction will further the purposes of the fund. The institution shall notify the attorney general of the application, and the attorney general must be given an opportunity to be heard. To the extent practicable, any modification must be made in accordance with the donor’s probable intention.

(c)  If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the attorney general of the application, and the attorney general must be given an opportunity to be heard.

(d)  If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, sixty (60) days after notification to the attorney general, may release or modify the restriction, in whole or part, if:

(1)  The institutional fund subject to the restriction has a total value of less than twenty-five thousand dollars ($25,000);

(2)  More than twenty (20) years have elapsed since the fund was established; and

(3)  The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.

History of Section.
P.L. 2009, ch. 61, § 2; P.L. 2009, ch. 63, § 2.