In contracts class we spend a fair amount of time distinguishing between gifts and valid consideration. In short, we talk about whether gifts are enforceable contracts. In the real world this distinction between gifts and enforceable contracts has been creating some problems for organizations who depend on charitable gifts. The Wall Street Journal recently reported that a growing number of donors are reneging (not following through with giving their gift) on their gift pledge. The problem is such now that many institutions are trying to devise ways to make charitable gifts enforceable contracts. The main problem, so says the WSJ, is that many of these gifts are made orally. The problem is compounded by the fact that many charitable donors would probably be offended by having to put their gift pledge in writing. As one donor notes, "My word is good. If they don't trust me they don't have to take the money -- I can go somewhere else. There are plenty of places that are happy to accept gifts without promises." But would putting the pledge in writing really make that much of a difference as far as enforceability goes?
28 November 2006
Gifts and Contracts
In contracts class we spend a fair amount of time distinguishing between gifts and valid consideration. In short, we talk about whether gifts are enforceable contracts. In the real world this distinction between gifts and enforceable contracts has been creating some problems for organizations who depend on charitable gifts. The Wall Street Journal recently reported that a growing number of donors are reneging (not following through with giving their gift) on their gift pledge. The problem is such now that many institutions are trying to devise ways to make charitable gifts enforceable contracts. The main problem, so says the WSJ, is that many of these gifts are made orally. The problem is compounded by the fact that many charitable donors would probably be offended by having to put their gift pledge in writing. As one donor notes, "My word is good. If they don't trust me they don't have to take the money -- I can go somewhere else. There are plenty of places that are happy to accept gifts without promises." But would putting the pledge in writing really make that much of a difference as far as enforceability goes?
