Callahan, John Blyer

English

Via Sapientiae: The Institutional Repository at DePaul University

DePaul Law Review Volume 20 Issue 1 1971 Article 10 Legal Aspects of Charitable Trusts and Foundations by Luis Kutner John Blyer Callahan Follow this and additional works at: https://via.library.depaul.edu/law-review Recommended Citation John B. Callahan, Legal Aspects of Charitable Trusts and Foundations by Luis Kutner, 20 DePaul L. Rev. 315 (1970) Available at: https://via.library.depaul.edu/law-review/vol20/iss1/10 This Book Reviews is brought to you for free and open access by the College of Law at Via Sapientiae. It has been accepted for inclusion in DePaul Law Review by an authorized editor of Via Sapientiae. For more information, please contact digitalservices@depaul.edu. BOOK REVIEWSLegal Aspects of Charitable Trusts and Foundations. By Luis KUTNER.Chicago: Commerce Clearing House, Inc., 1970. Pp. 442. $17.50.Luis Kutner describes his book as a guide for philanthropoids-thosewho are charged with the administration of charitable funds. The bookis to serve as a general guide for attorneys, banks, and corporations inthe drafting of charitable trust instruments, as well as calling the atten-tion of the legal profession to the major problems of charitable trustsand foundations. Also included is a current analysis of charitable trustsand foundations. The author has met his objective well with a detailedwork on this timely subject.Although the author did not intend the work to be a treatise on the In-ternal Revenue Code and Regulations, his frequent references to the 1969Tax Reform Act lead to the conclusion that the only effective control ofcharitable trusts and foundations is that exercised by the Internal Reve-nue Service. Luis Kutner's book is a literary culmination of the intenseactivity of the past decade concerning abuses in charitable trusts andfoundations.The author begins with a detailed introduction of why his book isnecessary-the inadequacy of information available to those chargedwith the responsibility of organizing, administering, and maintainingcharitable trusts and foundations. His introduction is an excellent sum-mary of the reasons why Congress felt it necessary to regulate the activi-ties of charitable trusts and foundations. Prior to the 1969 Tax ReformAct contributors had been taking advantage of opportunities to profit fromtheir gifts, and charities were encouraging donors to seek those advan-tages. The social and economic values of charitable giving and philan-thropy have developed over the years in a rather loose and unregulatedfashion with no one really wanting to interfere with the scheme of giving,lest the donor react to the interference by reducing the amount of hisgifts. Certainly the charities, as well as their beneficiaries, have a mu-tual concern and responsibility to police charitable trusts and foundationsso that the abuses described in the Patman report, which is extensivelyquoted by the author, would be corrected without the necessity of Con-gressional action. Typically, Congress overreacted. In fact there is greatconcern that the 1969 Tax Reform Act will substantially affect theamounts given to charity and, thus, the utilization of those funds by chari-ties, notably private foundations.The understanding of any subject requires a knowledge of its history anddevelopment. Kutner provides a sufficiently detailed summary to assistthe reader in understanding the problems which faced Congress. Althoughthe author intends generally to concern himself with all the legal aspectsof charity and philanthropy, he must, of necessity, focus on the incometax aspects of the problem. Because of generous income tax benefitsresulting from charitable gifts, private philanthropy in the United Stateshas been substantial. The view has been advanced that this representsan indirect gift to charity by the government, and, therefore, federal andstate tax regulation of charitable trusts and foundations is justified. On theother hand, those holding that private philanthropy is an inalienable right1971]316 DE PAUL LAW REVIEW [Vol. XXof the individual, view the income tax allowance for a charitable con-tribution as a recogniiton of such a view. Whatever the view of the reader,the book serves as an excellent comparison of these themes and wouldhelp to guide the philanthropoid, his attorney, bank officer, etc. in un-derstanding the regulation of charitable trusts and foundations by bothsovereigns.The author describes the organization, operation and activities ofcharitable trusts and foundations. He includes a discussion of the varioustypes of charitable entities, such as corporations and trusts; the selectionof trustees and directors; and, in primer form, the day-to-day activities ofa foundation or trust in screening applicants for its beneficence.The book is the result of many years of research and includes copiousreferences to cases involving rather basic, but also uncommon, situa-tions which may develop in the legal aspects of charitable activities. All inall, it is an excellent desk book for those who frequently work in the fieldof charitable giving as well as an excellent beginning text for the readerwho is only occasionally presented with such problems.JOHN BLYER CALLAHAN** Member, Illinois Bar; B.S.C., J.D., DePaul University. Partner, Shaheen,Lundberg and Callahan, a professional corporation.

Legal Aspects of Charitable Trusts and Foundations by Luis Kutner

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Legal Aspects of Charitable Trusts and Foundations by Luis Kutner

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