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Cy Pres Donations and Cy Pres Settlements/Awards

Cy pres donations and cy pres settlements/awards involve reallocating charitable funds or legal awards when the original purpose or beneficiary can no longer be fulfilled. Under the doctrine of “cy pres” (French for “as close as possible”), courts or trustees redirect the funds to a similar purpose or organization that aligns with the donor’s or award’s intent.

Real World Examples

  • Cy Pres Donations: A donor bequeaths funds to a nonprofit that later dissolves. The court directs the money to another organization with a closely related mission.
  • Cy Pres Settlements/Awards: In a class action lawsuit, leftover settlement funds are distributed to charities that address issues related to the case, such as consumer protection or environmental causes.

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