Contents
Preface
Chapter I. Foundations in Historical Perspective
Evolution of Foundations in Early Society
The Islamic Foundations
Foundations in England
Development of Trusts
Restrictions on Charitable Gifts in England
The Elizabethan Contributions
Enforcement Procedures
The Nathan Committee and the Charities Act of 1960
Developments in Substantive Law
Corporate Charities in England
Charitable Trusts in the United States
Charitable Corporations in the United States
Foundations Today
Foundations and the American Economy
Foundations in a Pluralistic Society
Chapter II. The Law of Charitable Dispositions
Definitions of "Charity"
Public Policy Considerations
Motives of Donors
Imperfect Trust Provisions
Charitable Corporations
Definitions in Federal Tax Laws
Definitions in State Tax Laws
The Obsolete Purpose
Chapter III. Foundations as Trusts
Requisites for the Creation of Charitable Trusts
Restrictions of Amount of Charitable Bequests
Requirement of Indefiniteness of Beneficiaries
Duration and the Restrictions on Remoteness of Vesting
Termination
The Fiduciary Relationship
Deviation from the Terms of a Trust
Duties of Trustees
Investment of Trust Funds
Diversification of Investments
Additional Duties
Powers of Trustees
Uniform State Laws
Exercise of Discretionary Powers by Trustees
Liability of Trustees for Breach of Trust
Liability to Third Persons
Compensation of Trustees
Chapter IV. Foundations as Corporations
New York
Pennsylvania
Massachusetts
South Carolina
Michigan
States Permitting Stock Corporations
Restrictions on the Amount a Charitable Corporation May Own or Take by Devise
Duration
Amendment and Merger
Dissolution
Accumulation of Income
Corporations Formed to Administer Charitable Trusts
Charitable Corporations-Trustees or Not?
Internal Organization of Charitable Corporations
Fiduciary Relations
Investments
Powers
Ultra Vires Contracts
Liabilities of Directors for Breach of Duties
Liability to Third Persons
Compensation of Directors
Corporation versus Trust
Chapter V. The Internal Revenue Code
Operational and Organizational Tests
Unrelated Business Income
Feeder Corporations
Unreasonable Accumulations and Misuse of Income
Prohibited Transactions
Donor Control
Foundation "Abuses"
Problems Raised by Regulation of Charities Through Tax Laws
Fiduciary Law and Tax Law
The Courts
The Attorney General
Exclusion of the General Public
Interested Parties
The Power of Visitation
Parties to Suits Involving Charity
"Proper" Parties
Statutes of Limitations and Laches as Bars to Action
The Legislature
Supervision by Other State Agencies
Solicitation of Charitable Funds
Supervision of Bank and Trust Companies
Tax Authorities
Independent Boards for Charity Supervision
Chapter VII. The Role of Attorney General
Surveys of Extent of Supervision by Attorneys General
New York
Pennsylvania
Texas
Hawaii
Washington
Increasing the Powers of the Attorney General by Registration and Reporting Statutes
Charities Affected by New Legislation
The Uniform Act for Supervision of Trustees for Charitable Purposes
New Hampshire
Rhode Island
Ohio
South Carolina
Massachusetts
Iowa
California
Illinois
Michigan
Oregon
Chapter X. Agencies for Federal Supervision
The Congress
Congressional Investigations
The Cox Committee
The Reece Committee
The Patman Investigation
The Role of the Treasury
Treasury Department Report on Private Foundations
Promulgation of Regulations
Organization
Rulings
Record-Keeping Requirements
Information-Reporting Forms
Audits
Litigation
Appellate Courts
Procedure on Loss of Exemption or Denial of Deduction
Federal and State Cooperation
A National Registry of Tax-Exempt Organizations
The Federal Government and "Charity"
Chapter XI. The English Experience
Supervision of Charities Prior to 1960
Provisions of the Charities Act of 1960
Registration of Charities
Procedures and Forms for Reports
Investigatory and Corrective Powers of the Commissioners
Local Authorities
Investment of Trust Funds
The Ontario Charities Accounting Act
Control of Charitable Trusts in Ontario
The Canadian Income Tax Act
Chapter XII. Prospects and Recommendations
Charitable Purposes and the Obsolete Purpose
Fiduciary Standards
Problems of Enforcement
Comparison of State Enforcement Programs
Alternatives to Supervision by an Attorney General
Political Considerations
Limitations on State Action
Fulfilling the Public Trust
Appendix A. Legal Requirements for Charitable Trusts and Charitable Corporations, by State
Table 1. State Legal Requirements: Charitable Trusts
Table 2. State Legal Requirements: Charitable Corporations
Appendix B. Certain State Acts, Rules, and Regulations
Uniform Supervision of Trustees for Charitable Purposes Act
Illinois Charitable Trust Act-Definitions and Exemptions
California Uniform Supervision of Trustees for Charitable Purposes Act-Exemption Provisions
Oregon Statute-Disallowance of Tax Exemptions for Failure to File Reports and Reinstatement of Exemptions
Illinois Rules and Regulations for the Administration of Charitable Trusts
Massachusetts Regulations-Investigatory Proceedings
Massachusetts Statute-Dissolution of Charitable Corporations
Appendix C. Reporting Forms
Internal Revenue Service, Form 990-A
California Form for Initial Registration of Charitable Trust
California Charitable Trust Analysis
California Registry Record Card
Illinois Periodic Report Form
Illinois Schedule of Securities
Massachusetts Annual Report Form
English Statement of Account
Appendix D. List of Cases
Index