Relocation of Publicly Supported Charitable Organizations
Is a donor powerless to prevent a charitable hospital from moving to another county after he has contributed substantially to its building fund? Surprisingly enough, the answer to this question may be "yes." It has been said that the community's interest is evident when charitable monies come from direct public contributions, and that even if no trust is found a charitable corporation must use a gift for the purpose intended. Yet general expressions of what "should be" or what "is right" are insufficient guidelines for proper enforcement of fiduciary duties, and there has been much confusion in the administration and enforcement of gifts not in trust when a charitable corporation is involved. Studies have indicated that the average state attorney general's office has supplied almost no supervision or enforcement of charitable trusts, yet the number of charitable corporations and charitable trusts has been growing at an astounding rate.