Restricted charitable donations and the "Cy Pres" doctrine

Baç, Mehmet (2002) Restricted charitable donations and the "Cy Pres" doctrine. European Journal of Law and Economics, 14 (1). pp. 15-32. ISSN 0929-1261

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Courts apply the "cy pres" doctrine to best approximate deceased donor restrictions when these become illegal or impossible to carry out. I show, in a model of strategic donations, that a commitment to further protect deceased donor restrictions attracts more funds today at the price of inefficient allocation of funds tomorrow. The analysis identifies the benefits and costs of relaxing the doctrine, suggesting that a more flexible application by properly balancing its impact on present donations and future efficiency concerns, if feasible, would better serve to promote intergenerational social welfare.
Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Arts and Social Sciences
Depositing User: Mehmet Baç
Date Deposited: 05 Apr 2007 03:00
Last Modified: 17 Sep 2019 15:08

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