699 A.2d 995 (Conn. 1997)
In 1986, the Carl J. Herzog Foundation, Inc. made grants to the University of Bridgeport to provide need-based merit scholarship aid to disadvantaged students for medical related education.1 On August 12, 1986, the foundation agreed by letter to participate in a matching grant program that would provide such scholarships on a continuing basis.2 On September 9, 1986, the university wrote a letter accepting the offer of a matching grant of up to $250,000.3
Over time, the university raised the necessary $250,000, which the foundation matched by transferring $144,000 on June 26, 1987, and $106,000 on June 28, 1988.4 The grants were used to provide scholarships to students in the university’s nursing program.5 On June 20, 1991, the university closed its nursing school, and on November 21, 1991, the foundation was informed of the closure.6
The foundation commenced an action against the university seeking injunctive and other relief, alleging that the institutional funds had been co-mingled with the general funds, were not being used in accordance with the gift instrument, and had been spent for general purposes.7 The foundation requested a temporary and permanent injunction ordering the segregation of the funds, an accounting, and reestablishment of the fund or reversion to the Bridgeport Area Foundation.8
The university moved to dismiss the action for lack of subject matter jurisdiction on the ground that the foundation lacked standing.9 The trial court dismissed the action.10 The Appellate Court reversed the judgment of the trial court.11
Whether the Connecticut Uniform Management of Institutional Funds Act establishes statutory standing for a donor to bring an action to enforce the terms of a completed charitable gift?12
At common law, a donor who has made a completed charitable contribution, whether as an absolute gift or in trust, had no standing to bring an action to enforce the terms of his or her gift or trust unless he or she had expressly reserved the right to do so.13 The Connecticut Uniform Management of Institutional Funds Act does not alter the common law to confer standing on donors to enforce restrictions in completed charitable gifts.14
No. The Carl J. Herzog Foundation made the grants to the University of Bridgeport through letters in August and September 1986 without reserving any right of reverter or enforcement in the gift instrument.15 The university raised the matching funds and the foundation transferred the money in 1987 and 1988, completing the gift for scholarships in the nursing program.
Because the foundation did not reserve a property interest in the gift, and because CUMIFA does not provide for donor standing, the foundation lacks statutory standing to bring the action, leaving enforcement to the attorney general.16
The Connecticut Uniform Management of Institutional Funds Act does not establish statutory standing for a donor to bring an action to enforce the terms of a completed charitable gift.17
Related opinions on this issue
Joined by Justice Berdon
Justice McDonald, joined by Justice Berdon, dissented from the majority's holding.18 He would affirm the Appellate Court's opinion.19 He argued that the majority's decision simply approves a donee double crossing the donor and doing it with impunity unless an elected attorney general does something about it.20
This decision will not encourage donations to Connecticut colleges and universities.21 He failed to see why Connecticut should endorse such sharp practices and create a climate in the state that will have a chilling effect on gifts to its educational institutions.22