Recognition of the responsibilities of trustees and the necessity for awareness of these obligations is reflected in two recent publications: Summary of a Discussion by Trustees of the Carnegie Foundation for the Advancement of Teaching (New York: The Foundation, 1961) and Handbook for Trustees (4th rev. printing; Nashville: Division of Higher Education of the Methodist Church Board of Education, 1961).
2.
“In case of a charitable corporation duties of a … similar character [to that of trustees of a private trust] rest upon the members of the controlling board, whether they are called directors or trustees” (Restatement, Trusts § 379 [1959]). See also 4 Scott, Trusts § 386 (2nd ed., 1956).
3.
“A trustee in the management of a trust estate is requiredto use that degree of care and diligence that an ordinarily reasonable and prudent man would use in his own business under like or similar circumstances” (John A. Creighton Home for Girls Trust v. Waltman, 140 Neb. 3, 299, N.W. 261 [1941]).
4.
A trustee violates his duty if he sells to or buys property from the trust without full disclosure or if he has an interest in such a sale. See Restatement, Trusts § 206 (1959). A trustee is subject to surcharge for an excess of payments made by the charity or any loss which such purchase occasioned.
5.
See, for example, the Los Angeles ordinance. Los Angeles, Calif., Municipal Code, Charities, ch. 4, art. IV, Ordinance 77,000.
6.
N.H. R.S.A. 7:19-32 (1955); R.I. Gen. Laws Ann. § 18-9-1 to -9-3 (1956); Ohio Rev. Code Ann. § 109, 23-99 (1953); Mass. Gen. Laws Ann. ch. 12, § 8A-I (1958); Cal. Stat. 1959, ch. 1258, § 1; Cal. Gov't. Code § 12580-96 (Deering Supp. 1961). See also the Uniform Supervision of Trustees for Charitable Purposes Act, 9C Uniform Laws Ann. 208.15.
See the Report of the Health and Welfare Council of Delaware, Montgomery, and Philadelphia Counties, “A Study of Services and Facilities for the Blind Provided by Twenty-eight Agencies Specializing in Work with the Blind” (Philadelphia, May, 1959).
9.
Under the Internal Revenue Code contributions for charitable purposes up to a maximum of 20 per cent of adjusted annual gross income are deductible from income. An additional 10 per cent for gifts to churches, educational institutions, and hospitals is also deductible. Corporations may deduct gifts to charity up to 5 per cent of annual income. In most states, gifts to charity are exempt from inheritance taxes. Suggested changes in the percentages were under consideration in Congress in 1963.
10.
Jackson v. Phillips, 14 Allen 539 (Mass., 1867) (italics supplied).
11.
See Brown v. Memorial National Home Foundation (162 Cal. App. 2d 513, 329 p.2d 118, cert. den. 358, U.S. 943 [1959]), holding that a charitable corporation could not spend funds contributed to it for purposes other than the original chartered purpose, despite an amendment of the charter.
12.
See report by the Commonwealth of Pennsylvania, Charitable Institutions of Pennsylvania Which Received State Aid in 1897 and 1898 (Harrisburg, 1899). At this early date 118 private charities, including hospitals, homes, colleges, museums, and the like received direct appropriations from the Commonwealth. See also WarnerAmos Griswold, American Charities (New York and Boston: T. Y. Crowell, 1894).
13.
Although Puerto Ricans and Southern Negroes migrating to northern cities are in dire need of assistance in making the adjustment to the impersonality and complexity of urban life, few of the old-line settlement houses are engaged in providing such assistance. Rather, some settlements have attempted to continue to serve the same families and neighborhoods and thus are providing recreational and social opportunities for essentially solvent middle-class people.
14.
Appeal of Humane Fire Company, 88 Pa. 389.
15.
Restatement, Trusts § 399 (1959).
16.
In the matter of Rebecca Gratz Club, C.P. No. 1, Philadelphia March Term, 1915, #4346; see Order of April 22, 1960, authorizing the amendment of the charter.
17.
Legal mergers of hospitals are becoming more frequent as neighborhoods change and as modern medical care requires more specialized and costly equipment.
18.
As early as 1750, the Chancery Courts of England stated that unless there was public supervision there could be no charity (A. G. V. Whorwood, 1 Ves.Sr.534, 27 Eng. Rep. 1188.
19.
Voluntary Health and Welfare Agencies in the United States (New York: Schoolmasters’ Press, 1961), p. 11.
