Cy Pres Not Applied to Hospital Reorganization

When a hospital becomes part of a larger health care organization, but continues to operate as separate organization at the same location serving the same community, the cy pres doctrine should not be applied to require a pour-over trust and special accounting measures to prevent charitable trust income from indirectly benefiting the health care organization, but it was proper to order that the hospital’s articles of incorporation be amended to require that donor restricted funds be used solely for the operation of the hospital. In re: Grover C. Shoemaker Trust, 115 A.3d 347, 2015 PA Super 111, No. (5/7/2015).

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