New Act on Charitable Endowments

H.R. 2484 was signed into law by Governor Wolf on July 23, 2020, becoming Act 71 of 2020.

The act amends Titles 15 and 20 to allow nonprofit corporations and charities to pay out more than 10% of their charitable funds as “income” in the years 2020, 2021, and 2022.  The usual limit is 7%, and this change was thought to be needed to address the financial effects of the COVID-19 pandemic.

The act also amends Title 15 to allow nonprofit corporations to enter into nonjudicial settlement agreements with donors in order to modify restrictions on charitable gifts.

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