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.