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Donor Has No Recourse When Advised Fund Dissipated

Donor Has No Recourse When Advised Fund Dissipated

Donor Has No Recourse When Advised Fund Dissipated

Despite finding of breach of duty, donor could not prove damages
Despite a finding that a public charity failed in any way to satisfy a donor’s charitable goals with a donor advised fund and breached the implied covenant of good faith and fair dealing, the donor has no right to damages or rescission, the Supreme Court of Nevada has ruled. ( Styles v. Friends of Fiji, No. 51642, 2/8/11 .) The donor made a donor advised fund gift to Friends of Fiji, a Nevada nonprofit corporation that operated primarily out of California. Under the provisions of a donor advised fund, a donor makes a gift to a public charity and is given the right to recommend how the funds will actually be used, usually through grants to another charities.

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