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Bill

H 5250

Safeguarding Endowment Gifts

2025-2026 Regular Session Introduced by Brandon Newton

South Carolina bill restricts nonprofits and schools from spending endowment gifts contrary to donor intent, prioritizing donor control over institutional flexibility in fund use.

Referred to Committee on Judiciary
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Bill Summary · H 5250

Legislative bill overview

H 5250 proposes to regulate how educational institutions and nonprofits handle endowment gifts by potentially restricting their ability to spend down or repurpose restricted donations. The bill aims to ensure that gifts designated for specific purposes by donors are used according to donor intent rather than being redirected by institution leadership for different priorities.

Why is this important

Endowments represent billions in charitable assets across South Carolina's universities and nonprofits. This bill addresses tension between donor autonomy (ensuring money goes to intended purposes) and institutional flexibility (adapting spending as needs change). How institutions manage restricted funds affects both donor confidence in giving and organizations' ability to respond to emerging needs.

Potential points of contention

  • Donor intent vs. institutional needs: Strict enforcement may prevent institutions from redirecting funds to urgent priorities, even if original purposes become obsolete or less critical
  • Administrative burden: Tracking and enforcing specific donor restrictions across large endowments could require significant compliance infrastructure and legal oversight
  • Competitive disadvantage: Overly restrictive rules might discourage South Carolina institutions from receiving major gifts compared to peers in less-regulated states

Compiled from official sources — confirm details with the bill’s official record.

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