A CHARITABLE CATCH-22: STANDING FOR PRIVATE ATTORNEY GENERAL ACTIONS IN CALIFORNIA

By Geraldine A. Wyle^* and Stacie Polashuk Nelson^**

I. INTRODUCTION

In California, the law has long been established that donors who do not reserve specific rights of reversion or control over a charitable gift have no standing to enforce the terms of the gift to a charity or charitable foundation; leaving, with limited exception, only the Attorney General with standing to pursue an action. Nevertheless, given the many responsibilities of the Attorney General’s office and the ever increasing limit on resources, enforcement of charitable gifts is not and in reality cannot be a priority for the Attorney General. The State’s decision to provide limited resources to the Attorney General creates a tension in policies—ensuring that charities use donations for the intended purpose versus protecting charities from vexatious or harassing litigation from any minor donor.

The recent case of L.B. Research and Education Foundation v. UCLA Foundation¹ appears to be the beginning of a change in California law and a move toward providing donors with standing to enforce charitable gifts, regardless of whether the gifts are made as a charitable trust or are gifts subject to a condition subsequent.