Montana Legislature enacts Safeguarding Endowment Gifts Act for donor protections

Montana's Senate Bill 134, introduced on March 28, 2025, aims to bolster protections for charitable donors through the establishment of the Safeguarding Endowment Gifts Act. This legislation is designed to ensure that individual donors have legal recourse if their specified giving restrictions are not honored by recipient charitable organizations.

At its core, SB 134 defines key terms such as "charitable organization," "donor," and "donor-imposed restriction," laying the groundwork for a framework that safeguards the intentions of those who contribute to endowment funds. The bill emphasizes the importance of adhering to the terms set forth in endowment agreements, which may include specific conditions on how the funds are to be used.

The introduction of this bill has sparked discussions among lawmakers and stakeholders in the charitable sector. Proponents argue that it is essential for maintaining donor trust and ensuring that charitable contributions are utilized as intended. Critics, however, express concerns about the potential administrative burden this could place on smaller organizations, which may struggle to comply with the new requirements.

The implications of SB 134 could be significant, particularly for Montana's nonprofit landscape. By providing a clear legal framework, the bill aims to enhance accountability among charitable organizations, potentially leading to increased donor confidence and, ultimately, more robust funding for vital community services. As the bill moves through the legislative process, its impact on the relationship between donors and charities will be closely monitored, with advocates hopeful for a positive outcome that reinforces the integrity of charitable giving in the state.