South Carolina S 948: Safeguarding Endowment Gifts Act

Bill Text

2025-2026 Bill 948 Text of Previous Version (Feb. 24, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 948

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE 
"SAFEGUARDING ENDOWMENT GIFTS ACT" BY ADDING ARTICLE 2 TO CHAPTER 6, TITLE 34 
SO AS TO PROHIBIT CHARITABLE ORGANIZATIONS FROM VIOLATING WRITTEN DONOR 
RESTRICTIONS EXCEPT WHEN REQUIRED OR AUTHORIZED BY FEDERAL OR STATE LAW; TO 
REQUIRE NOTIFICATION TO DONORS WHEN A CHARITABLE ORGANIZATION IS UNABLE TO 
FULFILL ONE OR MORE TERMS IN AN ENDOWMENT AGREEMENT; TO ESTABLISH JUDICIAL 
PROCESSES AND REMEDIES WHEN CHARITABLE ORGANIZATIONS VIOLATE DONOR IMPOSED RESTRICTIONS 
IN ENDOWMENT AGREEMENTS; TO PERMIT CHARITABLE ORGANIZATIONS TO SEEK A JUDICIAL 
DECLARATION OF RIGHTS AND DUTIES AND RELATED PROVISIONS; AND TO DESIGNATE 
SECTIONS 34-6-10 THROUGH 34-6-100 AS ARTICLE 1, "GENERAL PROVISIONS."

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. This act may be cited as the "Safeguarding Endowment Gifts Act."

SECTION 2. Chapter 6, Title 34 of the S.C. Code is amended by 
adding:

Article 2

Safeguarding Endowment Gifts

 Section 
34-6-200. For purposes of this article only:

 (1) 
"Charitable organization" means an organization organized and operated 
exclusively for religious, charitable, scientific, testing for public safety, 
literary, educational, or other specified purposes and that is tax exempt from 
federal income tax as an entity described in Internal Revenue Code Section 
501(c)(3).

 (2) 
"Donor" means an individual or entity who has made a contribution of property 
or money to either an existing endowment fund or a new endowment fund of a 
charitable organization or of a charitable trust pursuant to the terms of an 
endowment agreement that may include donor-imposed restrictions or conditions 
governing the use of the contribution.

 (3) 
"Endowment agreement" means a written agreement between a charitable 
organization and a donor or between a charitable trust and a donor regarding 
the contribution made by the donor and accepted by the charitable organization 
or the charitable trust. An endowment agreement may include donor-imposed 
restrictions or other conditions governing the use of the contribution.

 (4) 
"Donor-imposed restriction" means a written statement within an endowment 
agreement that specifies obligations regarding the management or purpose of the 
endowment fund.

 (5) 
"Legal representative" means the administrator or executor of a person's estate, 
a surviving spouse if a court judgement has settled the accounts of the estate, 
or a person designated in an endowment agreement, whether or not born at the 
time of such designation, to act in place of a party to the agreement for all 
matters expressed in the agreement and all of the actions it contemplates 
including, but not limited to, interpreting, performing, and enforcing the 
agreement and defending its validity.

 (6) 
"Property" means real property, personal property, money, 
cryptocurrency, stocks, bonds, or any other asset or financial instrument.

 Section 
34-6-210. No charitable organization that accepts a contribution pursuant to a 
written donor-imposed restriction may violate the terms of that restriction except 
where specifically required or authorized by federal or state law.

 Section 
34-6-220. In the event a charitable organization is unable to fulfill one or 
more terms in an endowment agreement, the donor or that person's legal 
representative shall be notified thirty days prior to the charitable 
organization utilizing the contribution and offered an alternative solution 
that closely matches the initial term in the endowment agreement.

 Section 
34-6-230. (A) If a charitable 
organization violates a donor-imposed restriction contained in an endowment 
agreement, the donor or the donor's legal representative may file a complaint 
within six years after discovery for breach of such agreement. The donor or the 
donor's legal representative must provide the charitable organization at least 
ninety days' notice before filing the complaint.

 (B) The 
complaint may be filed in either a court of general jurisdiction in the county 
where the charitable organization has its principal office or principal place 
of carrying out its charitable purpose; or in a court of the United States 
whose district includes such county. The complaint may be filed regardless of 
whether the endowment agreement expressly reserves a right to sue or enforce the 
terms of the endowment agreement. However, the plaintiff shall be prohibited 
from seeking a judgment awarding damages to the plaintiff.

 Section 
34-6-240. (A) A charitable 
organization may obtain a judicial declaration of rights and duties expressed 
in an endowment agre