Improving Enforcement Mechanisms in the Charitable Sector: Can Increased Disclosure of Information be Utilized Effectively?

Ronald Chester

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A charity is a type of nonprofit institution exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code. In exchange for this exemption, the charity promises to do public good by promoting education, health, the arts, or other charitable purposes as defined in the Code. . . . I will argue that, if comprehensive  regulatory efforts by government ultimately fail, it will be for the courts to improve private “enforcement” of proper standards by expanding standing for “grantors,” and for “specially interested” beneficiaries. Whether the courts will accept my invitation to increase possibilities for private enforcement is an open question; in the end they may remain convinced of the old arguments about frivolous lawsuits draining charities of funds and driving away important personnel.
40 New Eng. L. Rev. 447

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