The Catholic University of America

Summary of Federal Laws

Miscellaneous Laws Affecting Universities

Compliance Partners

Director of Planned Giving

Related Policy

Gift Planning

The Philanthropy Protection Act (1995)

Codified in scattered sections of 15 U.S.C. § 80

The Philanthropy Protection Act of 1995 requires the charity to provide a disclsoure statement to all annuitants in a Gift Annuity Fund and also to provide the same to all prospective donors at the time of solicitation, using a letter or pamphlet format.

Requires exempt charitable organizations that commingle investment assets to provide donors with written information describing the material terms of the operation of the fund. Exempts charitable organizations, when trading for the institution's own account, from federal security laws (except anti-fraud) and from state securities laws unless new state legislation is adopted by December 7, 1998. Unclear whether disclosure is required with respect to all funds covered by the Act or only with respect to planned giving vehicles where the donor (or the donor's beneficiaries) have a financial interest in the investments of the fund or the organization operating it.

The Philanthropy Protection Act of 1995 prohibits the payment of commissions or remuneration to anyone based on the value of a charitable gift annuity given to a public charity.

Resources

Sample Gift Annuity Disclosure Statement (required by Philanthropy Protection Act)

Securities Regulation of Fundraising Activities of Religious and other NonProfit Organizations: Stetson law Review By Timothy L. Horner, and Hugh H. Makens

Legal Issues in Fundraising Management: Kirstin L. Humann, Susan J. Wommack, Presented AACA 2001 Annual Meeting


updated 4/11/13 CCR

updated mlo 9/11/13