Charity vs. Donor
Wednesday, December 23, 2009
The December 18th issue of Cleveland Jewish News crossed my desk today. On the cover was an article about a charity that is suing a donor who, according to court filings, agreed to donate $1 million, but never did so. Complicating matters, the donor was later diagnosed with dementia and determined to be incompetent by the Probate Court. The donor’s family feels the organization shouldn’t have approached their loved one during such a vulnerable time in her life. Expecting the funds, the organization already made capital improvements and expected the donor to uphold her obligation. Who’s in the right?
If you are familiar with my previous posts, you know that I am interested in philanthropy. This article caught my attention, especially since it relates so closely to our Estate Planning and Elder Law practices. As an older adult, how do you appropriately make your financial interests known? As the family member of an older adult, how do you know they are making informed financial decisions?
I posed these questions to Attorney David Myers. His thoughts:
Hmmm, a curious case. While a “pledge to a charity” can be different, the general rule is that a promise to make a gift is not enforceable. If I tell my daughter that she will be getting a car for her birthday, she plans a cross-country motor trip, and then I don’t deliver, she can’t sue me (well, she can but she won’t win the case). Ordinarily, in order for a promise to be enforceable one has to receive something of value in exchange for it.
More generally, your questions raise issues about the balance between privacy on the one hand and prudence on the other. Older (and younger) adults are entitled to keep their business to themselves. It is a matter of choice and independence. Unfortunately the world is full of people, some well-intentioned and some not, who look to part me from my money. As I age I may more frequently become both the target for such “pitches” and more vulnerable to them. I may forget the rule that if it sounds too good to be true, then it probably is. Or the sale may be dressed up in words or concepts that I never understood – invest in this annuity, high return, risk free. For these reasons one should get the opinion of a trusted “other,” whether that be a child, neighbor, or professional, before taking any big or unusual financial steps. It is also useful to keep one’s financial records reasonably well organized so that if someone else has to step in they can understand what has gone one.
A family member of an older adult can begin by building (or improving) a respectful and trusting relationship with that adult. Engage in money-related conversations about things in the news. Share with the older adult thoughts they have had themselves about their own financial decisions. Offer help gently.
Finally, in all cases, older (and even younger) adults should have in place good financial powers of attorney that enable another to step in and manage things in times of illness or disability.
- Posted by Jill Fowler
