Erik Dryburgh

This article discusses an often‐neglected aspect of charitable giving: how charitable organizations can dispose of charitable gifts. All gifts need an exit strategy. Sometimes the strategy is simple: sell the marketable security. Sometimes, there is no exit strategy—consider a charity that accepts toxic land. Most gifts fall somewhere in between, with multiple potential exit strategies that should be considered before the gift is accepted.

The law of endowments has changed dramatically, just in time for our new "down" market. This article focuses on the law of endowments, the new accounting rules, and the challenges facing charities in determining their endowment spending rates. This also reviews a few "new" ideas for donors reluctant to give to the traditional endowment.

Donors constantly attempt to restrict their gifts. This article addresses the issues created when donors place such restrictions. It begins with a review of the various types of restrictions donors desire, including purpose, spending, and investment; analyzing the tax issues caused by donor restrictions; and shows why some restrictions can render a gift non-deductible. Restrictive purpose clauses and the review of a charity's options with an unworkable gift are discussed. Finally, the article focuses on spending restrictions or endowments: how to create an endowment, what spending limitations apply, and how a charity can build a "better" endowment.