Washington Code 24.03A.185 – Restricted gifts
Current as of: 2023 | Check for updates
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(1) This section distinguishes between:
Terms Used In Washington Code 24.03A.185
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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.
- Trustee: A person or institution holding and administering property in trust.
(a) Enforceable trusts held by a nonprofit corporation, including a charitable corporation, governed under chapter 11.110 RCW; and
(b) Gift restrictions whose terms may be enforced and are subject to modification under this chapter or other applicable law.
(2) A gift to a nonprofit corporation, including a charitable corporation, does not create a charitable trust unless:
(a) The donor expresses an intent to create a charitable trust; and
(b) The trustee, which may be a charitable corporation, agrees in the form of a record to act as trustee of that trust according to its terms.
(3) Giving a gift to a nonprofit corporation, including a charitable corporation, that is: (a) Accepted by the corporation; (b) not in trust; and (c) subject to material restrictions or requirements contained in a gift instrument transfers complete ownership to the nonprofit corporation. The nonprofit corporation is bound by the material restrictions or requirements contained in the gift instrument.
(4) A nonprofit corporation complies with a term contained in a gift instrument if the nonprofit corporation reasonably complies with all material restrictions or requirements contained in the term, or, when appropriate under the facts and circumstances, seeks modification in accordance with RCW 24.03A.190.
(5) If the nonprofit corporation fails to comply with any material restriction or requirement contained in a gift instrument and fails to seek a modification in accordance with RCW 24.03A.190, then the attorney general may bring a proceeding to enforce the terms of the gift instrument.
NOTES:
Effective date—2021 c 176: See note following RCW 24.03A.005.