Safeguarding Endowment Gifts Act

2025-2026 Bill 948: Safeguarding Endowment Gifts Act - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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S. 948
STATUS INFORMATION
General Bill
Sponsors: Senator Elliott
Companion/Similar bill(s): 5250
Document Path: LC-0283HA26.docx
Introduced in the Senate on February 24, 2026
Currently residing in the Senate Committee on
Banking and Insurance
Summary: Safeguarding Endowment Gifts Act
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

2/24/2026

Senate

Introduced and read first time (
Senate Journal-page 4
)

2/24/2026

Senate

Referred to Committee on
Banking and Insurance
(
Senate Journal-page 4
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
02/24/2026

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
34-6-10
0 AS ARTICLE 1, "GENERAL PROVISIONS."

B
e it enacted by the
General Assembly of the State of South Carolina:

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

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

A
rticle 2

S
afeguarding Endowment Gifts

S
ection
34-6-200
.
F
or 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.

S
ection
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.

S
ection
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.

S
ection
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.

S
ection
34-6-240
.
(
A) A charitable
organization may obtain a judicial declaration of rights and duties expressed
in an endowment agreement containing donor-imposed restrictions regarding all
of the actions that the endowment agreement contemplates. A judicial
declaration may include, but not be limited to, the interpretation,
performance, and enforcement of the endowment agreement and a determination of the
endowment agreement's validity.

(
B) The
charitable organization may seek a judicial declaration as described in
subsection (A) by filing a complaint but must request a judicial declaration in
the event a lawsuit is filed pursuant to this article.

S
ection
34-6-250
. If the court determines that a charitable organization violated a
donor-imposed restriction in an endowment agreement, the court may order one or
more remedies consistent with the charitable purposes expressed in the
endowment agreement. The court shall not order the return of donated funds to
the donor or the donor's legal representative or estate.

S
ection
34-6-260
. Nothing in this article affects the authority of the attorney
general to enforce any restriction in an endowment agreement, limits the
application of the judicial power of cy pres, or alters the right of an
institution to modify a restriction on the management, investment, purpose or
use of an endowment fund in a manner permitted by the endowment agreement and
by this chapter.

S
ECTION 3. The
provisions of this act shall supersede any statute that conflicts with this
act.

S
ECTION 4. Sections
34-6-10
through
34-6-10
0 are designated as Article 1, "General Provisions."

S
ECTION 5. This act takes effect upon approval
by the Governor.

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This web page was last updated on February 24, 2026 at 12:28 PM