Acceptance of a Restricted Bequest: Ethical Considerations
Ellen Lippman,Teri Grimmer
January 1, 2017
Strategy & General Management
nonprofit, bequest, restricted donation, ethics
Journal of Critical Incidents
Donald and Mildred Othmer were long-time supporters of Long Island College Hospital. Their wills directed that approximately one-fifth of their $730 million estate was to be given to the hospital; the principal was to remain restricted with only the interest available for general use. However, by the time of the Othmers’ deaths, the ability of the hospital to maintain that restriction was significantly in doubt. Should the board accept the bequest?