20 Pa.C.S. Ch. 79

in effect

20 Pa.C.S. § 7901 Short title of chapter.

This chapter shall be known and may be cited as the Charitable Instruments Act.

20 Pa.C.S. § 7902 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Charitable organization." A corporation, trust or other instrumentality governed by Pennsylvania law, including: (1) A trust described in section 4947(a)(1) or (2) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 4947(a)(1) or (2)), which is or is treated as a private foundation under section 509 of the Internal Revenue Code of 1986 (26 U.S.C. § 509). (2) A trust governed by Pennsylvania law that is or is treated as a pooled income fund under section 642(c)(5) of the Internal Revenue Code of 1986 (26 U.S.C. § 642(c)(5)).

20 Pa.C.S. § 7903 Deemed provisions of governing instrument.

(a) Effect of deemed provisions.--The governing instrument of a charitable organization is deemed to include provisions, the effects of which are to: (1) Require distributions for each taxable year in such amounts and at such times and in such manner as not to subject the organization to tax under section 4942 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 4942). (2) Prohibit the organization from: (i) Engaging in an act of self-dealing, as defined in section 4941(d) of the Internal Revenue Code of 1986 (26 U.S.C. § 4941(d)). (ii) Retaining excess business holdings, as defined in section 4943(c) of the Internal Revenue Code of 1986 (26 U.S.C. § 4943(c)). (iii) Making an investment in such manner as to subject the organization to tax under section 4944 of the Internal Revenue Code of 1986 (26 U.S.C. § 4944). (iv) Making a taxable expenditure, as defined in section 4945(d) of the Internal Revenue Code of 1986 (26 U.S.C. § 4945(d)). (b) Effect of contrary provision.--The deemed provisions under subsection (a) supersede any contrary provision of the governing instrument. (c) Applicability.--This section applies only to the extent that the charitable organization is subject to one or more of the sections of the Internal Revenue Code of 1986 set forth in subsection (a).

20 Pa.C.S. § 7904 Power to amend governing instrument.

The trustees or directors of every charitable organization have the power, acting alone, without the approval of a member, court, donor or beneficiary, to amend the instrument governing the charitable organization in any manner required for the sole purpose of ensuring that: (1) Gifts and bequests to the charitable organization qualify for charitable deductions available for Federal income, gift and estate tax purposes. (2) The charitable organization qualifies for tax exemptions available for Federal income tax purposes.

20 Pa.C.S. § 7905 Court authority.

Nothing in this chapter precludes a court of competent jurisdiction from authorizing a deviation from the express terms of an instrument governing a charitable organization.

20 Pa.C.S. § 7906 Applicability.

This chapter shall apply to: (1) A charitable organization created after December 31, 1969. (2) A charitable organization created before January 1, 1970, unless a court of competent jurisdiction in a proceeding instituted before January 1, 1972, explicitly decided that the operation of this chapter would substantially impair the accomplishment of the purposes of the charitable organization involved in that proceeding.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=20Fetched: 10/16/2026