Settlement shines spotlight on donor intent

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Abstract: Last year, Princeton University reached a $101 million settlement with a donor foundation that had asserted that the university spent the donor’s funds in a manner contrary to its original intent. A number of similar disputes have erupted over the last several years that highlight a major dilemma for charities: They must act as loyal stewards of donated funds while maintaining proper authority over them. This article lists several specific steps a nonprofit can take to avoid conflicts, and offers a sidebar listing gift-acceptance guidelines.