Posted on February 7, 2007

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Salvation Army Challenges Trust in Court

The Salvation Army has filed suit in Seattle challenging a trust that shares more than $260 million among eight charities, the New York Times reports.

In its suit, the faith-based organization argues that Greenpeace International, to which H. Guy Di Stefano bequeathed funds, was dissolved in 2005 and that its affiliate, the Washington, D.C.-based Greenpeace Fund, is not eligible to receive its portion of the trust. The Arlington, Viriginia-based organization has asked the court to divide Greenpeace's share among the seven other charities.

The dispute involves a trust created by Di Stefano, whose late wife had inherited United Parcel Service stock. Di Stefano, who died in July, left his estate to Direct Relief International, the Santa Barbara Hospice Foundation, the Santa Barbara Visiting Nurse Association, the American Humane Society, the Disabled American Veterans Charitable Service Trust in Cold Spring, Kentucky, and the World Wildlife Fund in Washington, D.C., as well as Greenpeace International.

In October, the estate's trustee, the Bank of America, filed a petition in Washington state, where Di Stefano lived, prompting the Salvation Army to contest disbursement of funds to Greenpeace. The dispute has also sparked debate within the Salvation Army as to whether the additional funds should be allocated to the organization's eastern division, where its national headquarters is located, or its western division, the region of the country Di Stefano called home.

The other beneficiaries of the trust have steered clear of the dispute. "In my ten years as a legal counsel here, we have never gotten involved in a dispute over donor intent, and we certainly have had the opportunity," said Christopher J. Clay, general counsel and planned giving director of the Disabled American Veterans. "For a national charity to get out there in this kind of a case would take a compelling reason, and I don't think there's a compelling reason here."

Strom, Stephanie. “Salvation Army Unit Seeks to Gain More of a Huge Gift.” New York Times 2/03/07.

Primary Subject: Philanthropy and Voluntarism
Location(s): Virginia, Washington

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