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Abstract: 

From “mission creep” to more extreme examples in which a foundation’s assets are squandered by self-dealing boards, hijacking occurs much more frequently than one would expect (and goes unremedied more often than not). Rather than try to recover a charity that has been hijacked, a legal advisor’s best option to is to institute certain safeguards to ensure that his client’s goals and wishes are protected from day one to prevent any potential hijacking in the future. If great care is taken in the early stages of creating a charitable organization, both the effectiveness of the organization and an increased likelihood that the organizationwill accomplish the donor’s objectives can be achieved.

Keywords: Choice of Entity; Mandatory Distributions; Poison Pill; Trust Protector; Incorporation

Affiliations:  1: Smith, Gambrell & Russell.