PrepTest 24, Section 3, Question 20
When the Pinecrest Animal Shelter, a charitable organization, was in danger of closing because it could not pay for important repairs, its directors appealed to the townspeople to donate money that would be earmarked to pay for those repairs. Since more funds were ultimately donated than were used for the repairs, the directors plan to donate the surplus funds to other animal shelters. But before doing so, the directors should obtain permission from those who made the donations.
When the Pinecrest Animal Shelter, a charitable organization, was in danger of closing because it could not pay for important repairs, its directors appealed to the townspeople to donate money that would be earmarked to pay for those repairs. Since more funds were ultimately donated than were used for the repairs, the directors plan to donate the surplus funds to other animal shelters. But before doing so, the directors should obtain permission from those who made the donations.
When the Pinecrest Animal Shelter, a charitable organization, was in danger of closing because it could not pay for important repairs, its directors appealed to the townspeople to donate money that would be earmarked to pay for those repairs. Since more funds were ultimately donated than were used for the repairs, the directors plan to donate the surplus funds to other animal shelters. But before doing so, the directors should obtain permission from those who made the donations.
When the Pinecrest Animal Shelter, a charitable organization, was in danger of closing because it could not pay for important repairs, its directors appealed to the townspeople to donate money that would be earmarked to pay for those repairs. Since more funds were ultimately donated than were used for the repairs, the directors plan to donate the surplus funds to other animal shelters. But before doing so, the directors should obtain permission from those who made the donations.
Which one of the following principles, if valid, most helps to justify the position advocated above and yet places the least restriction on the allocation of funds by directors of charitable organizations?
The directors of charitable organizations cannot allocate publicly solicited funds to any purposes for which the directors had not specifically earmarked the funds in advance.
People who solicit charitable donations from the public for a specific cause should spend the funds only on that cause or, if that becomes impossible, should dispose of the funds according to the express wishes of the donors.
Directors of charitable organizations who solicit money from the public must return all the money received from an appeal if more money is received than can practicably be used for the purposes specified in the appeal.
Donors of money to charitable organizations cannot delegate to the directors of those organizations the responsibility of allocating the funds received to various purposes consonant with the purposes of the organization as the directors of the organization see fit.
People who contribute money to charitable organizations should be considered to be placing their trust in the directors of those organizations to use the money wisely according to whatever circumstance might arise.
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