Disregarding Donors and Tinkering with Texas Trusts: Judicial Modification of Restricted Charitable Gifts

To prepare for the possibility that changed circumstances may eventually affect donations, a donor can protect gifts against future judicial modifications through specificity in the gift instrument and clearly describing their intended restrictions. If the donor and the charity have a clear understanding of the terms of the gift, and the reasoning behind them, problems down the line may be avoided. Although charities rely upon private donations, they should avoid accepting restricted gifts with conditions that could eventually interfere with their operation. Some problems are unavoidable, however. In this event charities and the donor’s family can resolve disputes using documentation of their communications as evidence clarifying donor intent and the charity’s understanding. Such communication leaves little doubt as to the donor’s original intentions and should preclude the court from substituting their own intent in the donor’s absence.