Legal Definitions - cy pres doctrine

The cy pres doctrine is a legal principle used by courts to distribute charitable gifts when the intended beneficiary is unavailable or the bequest is no longer feasible. The term "cy pres" means "as near as possible." Instead of invalidating the charitable gift, the court can select a new beneficiary that closely corresponds to the original intent of the donor.

• If a person sets up a trust with the intention that, after the death of their last living relative, the remaining trust funds go to a specific charity that no longer exists, the court may direct the funds toward a similar charity that fulfills the general charitable intent of the donor.
• In a class action lawsuit, if funds go unclaimed or distributing the funds to every individual class member is not cost-effective, the court may approve a beneficiary, such as a charitable organization, that relates to the issue underlying the class action and accounts for the geographic diversity of the class members.

These examples illustrate how the cy pres doctrine allows courts to ensure that charitable gifts are still used for their intended purpose, even if the original beneficiary is no longer available or feasible. By selecting a new beneficiary that closely corresponds to the donor's intent, the court can still fulfill the charitable purpose of the gift.