Legal Definitions - onerous donation

An onerous donation refers to a gift or transfer of property that comes with a specific condition, obligation, or burden imposed on the recipient. While the recipient receives something of value, they must also perform a certain action, fulfill a requirement, or undertake a responsibility in exchange for the gift. The burden is typically less than the value of the gift itself, distinguishing it from a sale or exchange, but it is not a completely free or unconditional transfer.

Here are some examples to illustrate this concept:

• Example 1: Land for a Public Park

  A wealthy philanthropist donates a large tract of undeveloped land to a city. The donation agreement specifies that the city must develop and maintain a public park on the land, named after the philanthropist's family, and ensure it remains accessible to the public for at least 75 years. The city receives valuable land (the donation), but it also assumes the significant financial and operational burden of creating and maintaining the park according to the donor's conditions. This ongoing commitment makes it an onerous donation.

• Example 2: Art Collection for a Museum

  An avid art collector bequeaths their entire private collection of rare Renaissance paintings to a local museum. The will stipulates that the museum must dedicate a permanent gallery exclusively to this collection, hire a specialist curator to oversee its care, and commit to funding its conservation for a minimum of 50 years. The museum gains a priceless art collection (the donation), but it also takes on substantial long-term financial and logistical obligations (the burden) to meet the donor's specific requirements. This is an onerous donation.

• Example 3: Endowment for a Scholarship Fund

  An alumni couple donates $10 million to their alma mater. The donation agreement states that the university must use the annual interest generated from this endowment to establish and perpetually fund scholarships for students pursuing degrees in sustainable agriculture, and provide annual reports on the scholarship recipients and fund management. The university receives a significant financial gift (the donation), but it is burdened with the specific, ongoing responsibility of managing the fund and awarding scholarships according to the donors' precise criteria, rather than having unrestricted use of the funds. This constitutes an onerous donation.