                                 CODE OF VIRGINIA

RELEASE OR MODIFICATION OF RESTRICTIONS ON MANAGEMENT, INVESTMENT, OR PURPOSE
(§ 64.2-1104)

A. If the donor consents in a record, an institution may release or modify, in
whole or in part, a restriction contained in a gift instrument on the
management, investment, or purpose of an institutional fund. A release or
modification may not allow a fund to be used for a purpose other than a
charitable purpose of the institution.

B. The court, upon application of an institution, may modify a restriction
contained in a gift instrument regarding the management or investment of an
institutional fund if the restriction has become impracticable or wasteful, if
it impairs the management or investment of the fund, or if, because of
circumstances not anticipated by the donor, a modification of a restriction will
further the purposes of the fund. The institution shall notify the Attorney
General of the application, and the Attorney General shall be given an
opportunity to be heard. To the extent practicable, any modification shall be
made in accordance with the donor&#8217;s probable intention.

C. If a particular charitable purpose or restriction contained in a gift
instrument on the use of an institutional fund becomes unlawful, impracticable,
impossible to achieve, or wasteful, the court, upon application of an
institution, may modify the purpose of the fund or the restriction on the use of
the fund in a manner consistent with the charitable purposes expressed in the
gift instrument. The institution shall notify the Attorney General of the
application, and the Attorney General shall be given an opportunity to be heard.

D. If an institution determines that a restriction contained in a gift
instrument on the management, investment, or purpose of an institutional fund is
unlawful, impracticable, impossible to achieve, or wasteful, the institution,
without application to the court but with the consent of the Attorney General,
may modify the purpose of the fund or the restriction on the use of the fund in
a manner consistent with the charitable purposes expressed in the gift
instrument if the fund subject to the restriction has a total value of less than
$375,000.

E. If an institution determines that a restriction contained in a gift
instrument on the management, investment, or purpose of an institutional fund is
unlawful, impracticable, impossible to achieve, or wasteful, the institution, 60
days after notification to the Attorney General, may release or modify the
restriction, in whole or part, if:

   1. The institutional fund subject to the restriction has a total value of less
   than $75,000;

   2. More than 20 years have elapsed since the fund was established; and

   3. The institution uses the property in a manner consistent with the
   charitable purposes expressed in the gift instrument.

HISTORY: 1973, c. 167, § 55-268.7; 2008, c. 184, § 55-268.16; 2012, c. 614;
2025, c. 148.