## Facts

- A charitable foundation made multiple grants to a private university to support need-based merit scholarships for disadvantaged students in medical-related education.
- In 1986, the foundation agreed by letter to participate in a matching grant program intended to provide such scholarships on a continuing basis.
- The university accepted a matching grant up to $250,000, raised the matching amount, and the foundation transferred $250,000 in two installments in 1987 and 1988.
- The funds were used to provide scholarships to students in the university’s nursing program.
- In 1991, the university closed its school of nursing and later stopped using the donated funds for nursing scholarships.
- The foundation alleged the university diverted the restricted gift to other institutional purposes and sought relief to enforce the original charitable purpose, potentially by redirecting the funds to support similar scholarships elsewhere.

## Issues

1. Whether, under Connecticut common law, a donor of a completed charitable gift has standing to enforce restrictions on the gift’s use.
2. Whether the Connecticut Uniform Management of Institutional Funds Act (CUMIFA) creates statutory standing for a donor to sue to enforce restrictions in a gift instrument.

## Decision

- The Connecticut Supreme Court reversed the Appellate Court and reinstated judgment for the university.
- The court held that, under Connecticut common law, a donor of a completed charitable gift generally lacks standing to enforce the gift’s restrictions absent a reserved enforcement right, trustee status, or a special interest.
- The court held that CUMIFA does not confer donor standing to bring a private enforcement action regarding a completed charitable gift.
- Because the foundation did not reserve an enforcement right and did not qualify for an exception, its action was dismissed for lack of standing.

## Legal Principles

- Enforcement of charitable trusts and restricted charitable gifts is ordinarily brought by the Attorney General or another authorized public officer, not by the donor of a completed gift.
- A donor may have standing only if the donor expressly reserves enforcement rights in the gift instrument, serves as a trustee or co-trustee, or has a special interest distinct from the general public.
- Statutes are not read to alter common-law standing rules absent clear legislative intent.
- CUMIFA provides mechanisms for managing and, in limited circumstances, modifying or releasing restrictions on institutional funds, but does not create a private right of action for donors to enforce restrictions after a gift is complete.

## Conclusion

The court held that the foundation, as donor of a completed restricted charitable gift, lacked standing to sue the university to enforce the gift’s restrictions, and CUMIFA did not supply statutory standing; enforcement, if any, lies with public officials or other recognized parties under charitable trust principles.


Carl J. Herzog Foundation, Inc. v. Univ. of Bridgeport, 243 Conn. 1, 699 A.2d 995 (Conn. 1997)