Donor Intent and the Future of Higher Education Philanthropy
Most nonprofit organizations readily embrace the long-established principle that recipients of charitable gifts have a fiduciary duty to honor their donors’ intent – that charitable gifts, when given and accepted for a specific purpose, must be used for that purpose, unless it is impracticable, illegal or impossible to do so (in which case the recipient can ask the donor or the courts for permission to repurpose the money.)
Yet, some nonprofits are tempted to ignore donor restrictions. Several high-profile lawsuits now in court are challenging efforts by colleges and universities to sidestep donor intent.
On December 6, 2007, the Center for Excellence in Higher Education (CEHE) hosted a conference examining these controversies and analyzing why donor intent is equally important for philanthropists who support higher education and other nonprofit causes, the institutions entrusted with their gifts, and the students and other intended beneficiaries of these gifts. Experts discussed what is being done to improve the crafting and stewardship of gifts, how philanthropists and higher education can work together to ensure problems don’t arise, and what likely issues would appear if the problem goes unchecked.
Below is a copy of the conference agenda with links to the speakers’ formal remarks, including comments by representatives from donor intent controversies and other industry experts.
Conference Agenda:
Opening / Welcome Remarks (pdf version):
Dr. Frederic J. Fransen, Executive Director, Center for Excellence in Higher Education
Panel I: “Broken Covenants: Three Stories, Several Lawsuits”
Moderator: Ronald Malone, Partner, Shartsis Friese, LLP; Lead Attorney in Robertson v. Princeton and national legal expert on donor intent issues
Panelists:
- William Robertson, Princeton Alumnus; Lead Plaintiff, Robertson v. Princeton (Remarks of William Robertson / pdf version / www.robertsonvprinceton.org )
- Renée Seblatnigg, Newcomb Alumna; Attorney and President, The Future of Newcomb College, Inc., an organization of alumna and supporters fighting to restore and preserve Newcomb College and supporting the Howard v. Tulane University lawsuit (Remarks of Renée F. Seblatnigg / pdf version /www.newcomblives.com )
- Anne Yastremski, Randolph-Macon Woman’s College Alumna; Executive Director, Preserve Educational Choice, the alumnae/student/donor organization funding and supporting donor intent litigation against Randolph College, including Jenna Dodge v. the Trustees of Randolph-Macon Woman’s College
(Remarks of Anne Yastremski / pdf version / www.preserveeducationalchoice.org )
Panel II: “What Does It All Mean – for Higher Education, Philanthropy and the Greater Good?”
Moderator: Ben Wildavsky, Senior Fellow, Kauffman Foundation; Visiting Fellow, Brookings Institution; and former Education Editor, U.S. News & World Report
Panelists:
- William Josephson, Former Assistant Attorney General-in-Charge, New York State Law Department's Charities Bureau (Remarks of William Josephson / pdf version)
- Paulette Maehara, President, Association of Fundraising Professionals (pdf of Paulette Maehara' s Presentation /www.afpnet.org)
- Keith Whitaker, Director of Family Dynamics, Calibre, A Division of Wachovia Wealth Management; Research Fellow, Boston College’s Center on Wealth and Philanthropy (www.calibre.com)
Closing Remarks: "What Philanthropists and Foundations Can Do"
Dr. Frederic J. Fransen, Executive Director, Center for Excellence in Higher Education