Is there an alternative to cy pres to release a restriction on use?
A restriction on the use of an “institutional fund” held by a not-for-profit corporation may be released under Section 522 of the Not-for-Profit Corporation Law. That law allows a use restriction to be lifted or modified with the written consent of the donor; if the donor is deceased or cannot be located, a court order is required. Section 522 may not be used to lift an endowment spending restriction. Petitions for relief under Section 522 should be submitted to the Attorney General’s Charities Bureau for review and comment before being filed in court.
