SB 1338 — Charitable Giving

Florida Senate - 2026 CS for SB 1338 By Senatorthe BurtonCommittee 12-01082A-26on 20261338__Rules; A bill to be entitled An act relating to charitable giving;

and Senator Burton 595-02952-26 20261338c1 A bill to be entitled An act relating to charitable giving;

prohibiting a charitable organization that accepts a contribution pursuant to a written donor-imposed restriction from violating the terms of that restrictionrestriction; without potential penalty;

providing an exception;

authorizing such a donor or donor representative to seek a refund of all or a portion of the donated funds under certain circumstances;

providing an exception;

requiringauthorizing the charitable organization to seek a judicial declaration inPage any1 suitof brought7 underCODING: the act or by filing a complaint;

authorizing a court to order one or more remedies consistent with the charitable Page 1 of 6 CODING:

Florida Senate - 2026 CS for SB 1338 12-01082A-26595-02952-26 20261338__20261338c1 purposes expressed in theany endowmentsuit agreementbrought ifunder the courtact determinesor thatby afiling charitable organization violated a donor-imposedcomplaint; restriction in the endowment agreement;

authorizing a court to order one or more remedies consistent with the charitable purposes expressed in the endowment agreement if the court determines that a charitable organization violated a donor-imposed restriction in the endowment agreement;

providing an exception;

(2)Page DEFINITIONS.—As2 usedof in7 thisCODING: section, the term:

(a) “Charitable organization” means an organization organized and operated exclusively for religious, charitable, Page 2 of 6 CODING:

Florida Senate - 2026 SBCS 1338 12-01082A-26 20261338__ scientific, literary, educational, testing for publicSB safety1338 or595-02952-26 other20261338c1 specified(2) purposeDEFINITIONS.—As andused thatin isthis taxsection, exemptthe fromterm: federal income tax as an entity described in s.

(a) “Charitable organization” means an organization organized and operated exclusively for religious, charitable, scientific, literary, educational, testing for public safety, or other specified purposes and that is tax exempt from federal income tax as an entity described in s.

(b) “Donor” means an individual or entity that has made a contribution of property or money to 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-imposeddonor- imposed restrictions or conditions governing the use of the contribution.

(c) “Donor-imposed restriction” means a written statement within an endowment agreement which specifies requirementsrestrictions foror conditions on the managementmanagement, investment, purpose, or use of endowment funds.

(d) “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 andto acceptedan byexisting theendowment charitablefund organization or thea new endowment fund of a charitable trust,organization, which agreement may include donor-imposed restrictionsrestrictions. or other conditions governing the use of the contribution.

(e) “Endowment fund” means ana institutional fund held exclusively for a charitable purpose, other than program-related assets, or part thereof which, under the terms of a gift instrument, is not wholly expendable by the institutioncharitable organization on a current basis.

The term does not include assets that ana institutioncharitable organization designates as an endowment fund for its own use.

(f) “Gift instrument” means a record or records, including ana institutionalcharitable solicitation, under which property is granted to, transferredPage to,3 orof held7 byCODING: an institution as an institutional fund.

(g) “Legal representative” means the administrator or Page 3 of 6 CODING:

Florida Senate - 2026 CS for SB 1338 12-01082A-26595-02952-26 20261338__20261338c1 executortransferred ofto, or held by a person’scharitable estate;organization as a fund held exclusively by a charitable purpose, other than program- related assets.

(g) “Legal representative” means the administrator or personal representative of a survivingperson’s spouseestate, ifor a courtperson judgmentdesignated hasin settledan endowment agreement, whether or not born at the accountstime of such designation, to act in place of a party to the estate;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.

or(h) a“Property” personmeans designatedreal inproperty, antangible endowment agreement, whether or notintangible bornpersonal atproperty, theor timeany ofother suchasset. 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.

(h)(3) “Property”PROTECTIONS meansAFFORDED.— real(a) property,Except personalwhere property,specifically required or money,authorized cryptocurrency,by stocks,federal bonds, or anystate otherlaw, asseta orcharitable financialorganization instrument.that accepts a contribution pursuant to a written donor-imposed restriction may not violate the terms of that restriction.

(3)(b) PROTECTIONSIf AFFORDED.—a (a)charitable Exceptorganization whereviolates specificallya requireddonor-imposed orrestriction authorizedcontained byin federalan orendowment stateagreement, law,the adonor, charitableor organizationthe thatdonor’s acceptslegal arepresentative, contribution90 pursuantdays toafter anotifying writtenthe donor-imposedcharitable restrictionorganization of the breach, may notfile violatea thecomplaint termswithin of5 thatyears restrictionafter withoutdiscovery potentialfor penalty.breach of such agreement.

(b)The Ifcomplaint amay charitablebe organizationfiled violates a donor-imposed restriction contained in an endowment agreement, the donor,circuit orcourt thewhere donor’sa legalcharitable representative,organization’s 90principal daysoffice afteris notifyingor thewas charitablelast organizationlocated ofor, theif breach,none, maywhere fileits aregistered complaintoffice withinis 6or yearswas afterlast discoverylocated. for breach of such agreement.

The complaint may be filed inregardless a court of generalwhether jurisdiction in the countyendowment whereagreement aexpressly charitablereserves organization named as a partyright hasto itssue principal office or principalenforce placethe ofagreement, carryingunless outother itslanguage charitable purpose, or in a court of the Unitedendowment Statesagreement whosePage district4 includesof such7 county.CODING:

The complaint may be filed regardless of whether the endowment agreement expressly reserves a right to sue or enforce the agreement, and it may not seek a Page 4 of 6 CODING:

Florida Senate - 2026 CS for SB 1338 12-01082A-26595-02952-26 20261338__20261338c1 judgmentexpressly awardingwaives damagesthis toright. the donor or donor representative.

(c)The Ifcomplaint amay charitablenot organizationseek is unable to fulfill a termjudgment inawarding thedamages endowmentto agreement, the charitabledonor organization must notify the donor, or thedonor donor’srepresentative, legalbut representative,it withinmay 30seek daysa afterrefund discoveringof itall isor unablea toportion fulfillof the termsdonated andfunds offerif anthe alternativedonor solutionexpressly thatreserved closelya matchesright theto initiala termrefund in the endowment agreement.

(d)(c) AIf a charitable organization maydetermines obtainin aaccordance judicialwith declarationits ofinternal thepolicies rightsthat andit dutiesis expressedunable to fulfill a term in anthe endowment agreementagreement, containingthe donorcharitable restrictionsorganization asmust tonotify allthe ofdonor, or the actionsdonor’s thelegal endowmentrepresentative, agreementwithin contemplates,120 including,days butafter notsuch limiteddetermination to,that it is unable to fulfill the interpretation,terms performance,and ormust enforcementoffer ofan alternative solution that closely matches the initial term in the endowment agreement, andunless aother determinationlanguage ofin itsthe validity.endowment agreement limits this requirement.

The(d) A charitable organization shallmay seekobtain a judicial declaration of the rights and duties expressed in anyan suitendowment broughtagreement undercontaining thisdonor-imposed section,restrictions as to all of the actions the endowment agreement contemplates, including, but not limited to, the interpretation, performance, or byenforcement filingof the agreement, and a complaint.determination of its validity.

The charitable organization may seek a judicial declaration in any suit brought under this section, or by filing a complaint.

The court may not order the return of donated funds to the donor or the donor’s legal representative.representative unless a right to a refund is expressly reserved by the donor in the endowment agreement.

(f)Page This5 act does not affect the authority of the7 AttorneyCODING: General to enforce any restriction in an endowment agreement;

limit the application of the judicial power of cy pres;

or alter 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 the Florida Uniform Prudent Management of Institutional Funds Act created in s.

617.2104.