Expert advises greater control over charitable gifts

Advisers who help clients draft documents for charitable gifts might consider clauses that allow donors to take back the money from an organization if its mission changes. That was the view of Jay Steenhuysen, founder of Steenhuysen Associates, who spoke at the Rocky Hill, Conn.-based International Association of Advisors in Philanthropy’s annual conference in Rosemont, Ill. “I’ve seen larger organization fritter away millions,” said Mr. Steenhuysen, whose firm is based in Seekonk, Mass. “They’ve absolutely wasted the money.” Mr. Steenhuysen said advisers need to ensure the client’s legacy is protected, and by crafting documents carefully, provisions can be included to protect the donor. “What donors don’t realize is the organization they love today may not be the same organization 100 years from now,” Mr. Steenhuysen said. Even when crafting permanent gifts, advisers can include clauses that allow clients to get out of the deal if the charity strays from its initial cause. “It’s critical that if your client’s going to do an endowment, that the document is very carefully thought-out,” he said.