ABSTRACT
Reflecting on the history of America's most prominent foundations, it is apparent that the actual activities of those foundations have often been at odds with the intentions of the donors who created the foundations. The concept of donor intent for non-profit foundations is a slippery one for several reasons. When tax laws influence donations, they have the effect of creating an impediment to having the money spent in a manner consistent with the wishes of the donors, because donors have little incentive to monitor the expenditures. Foundations with more clearly articulated statements of donor intent may run into more serious problems. One way to keep foundations truer to the intentions of the donors is to install a self-perpetuating board of trustees that draws heavily on members of the donor's family. Foundations whose trustees are descendants of the original donor may even be more committed to using the foundation's resources effectively because of their relationship with the donor.
