Business Regulation (GBR) — Title 6.5. Protection of Charitable Assets
Statutes in effect as of October 1, 2026.
Subtitle 1
Md. Code Ann., Bus. Reg. § 6.5-101 (2026)
Title 6.5. Protection of Charitable Assets
Subtitle 1
§ 6.5-101LinkCopy Citation
(a)
In this title the following words have the meanings indicated.
(b)
(1)
“Charitable asset” means property that is given, received, or held for a charitable purpose, including all interest in:
(i)
real property; or
(ii)
tangible or intangible personal property.
(2)
“Charitable asset” includes:
(i)
cash;
(ii)
remainder interests;
(iii)
conservation or preservation easements or restrictions; and
(iv)
charitable contributions.
(3)
“Charitable asset” does not include property acquired or held for a for–profit purpose.
(c)
“Charitable purpose” means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of a governmental purpose, or any other purpose whose achievement is beneficial to the community.
Md. Code Ann., Bus. Reg. § 6.5-102 (2026)
Title 6.5. Protection of Charitable Assets
Subtitle 1
§ 6.5-102LinkCopy Citation
(a)
The Attorney General shall represent the public interest in the protection of charitable assets and may:
(1)
enforce the application of a charitable asset in accordance with:
(i)
the law and terms governing the use, management, investment, distribution, and expenditure of the charitable asset; and
(ii)
the charitable purpose of the person holding the charitable asset;
(2)
act to prevent or remedy:
(i)
the misapplication, diversion, or waste of a charitable asset; or
(ii)
a breach of fiduciary or other legal duty in the governance, management, or administration of a charitable asset; and
(3)
commence or intervene in an action to:
(i)
prevent, remedy, or obtain damages for:
(1)
the misapplication, diversion, or waste of a charitable asset; or
(2)
a breach of fiduciary or other legal duty in the governance, management, or administration of a charitable asset;
(ii)
enforce this title; or
(iii)
determine that an asset is a charitable asset.
(b)
If the Attorney General has reason to believe an investigation is necessary to determine whether action may be advisable under this section, the Attorney General may conduct an investigation, including exercising subpoena power.
Md. Code Ann., Bus. Reg. § 6.5-103 (2026)
Title 6.5. Protection of Charitable Assets
Subtitle 1
§ 6.5-103LinkCopy Citation
(a)
If the Secretary of State and the Attorney General find or have reasonable grounds to believe that a person has misapplied, diverted, or wasted a charitable asset or breached a fiduciary or other legal duty in the governance, management, or administration of a charitable asset, the Secretary of State and the Attorney General may enter into a settlement agreement that includes:
(1)
payment by the responsible party of the value by which the charitable asset has been diminished; or
(2)
transfer of the charitable asset to another charitable organization consistent with the charitable asset’s charitable purpose.
(b)
The Attorney General may sue in the circuit court for the county in which the alleged violation occurred for an order that:
(1)
restrains the responsible party from misapplying, diverting, or wasting a charitable asset in the State; and
(2)
secures:
(i)
payment of the value by which the charitable asset has been diminished; or
(ii)
transfer of the charitable asset to another charitable organization consistent with the charitable asset’s charitable purpose.
(c)
The remedies under this section are in addition to and do not limit the powers and duties of the Secretary of State and the Attorney General under § 6–205 of this article or § 6.5–102 of this title.
Md. Code Ann., Bus. Reg. § 6.5-104 (2026)
Title 6.5. Protection of Charitable Assets
Subtitle 1
§ 6.5-104LinkCopy Citation
Any action or other remedy enforcing this title is subject to any immunity or limitation on liability available under State or federal law or at common law.
Md. Code Ann., Bus. Reg. § 6.5-105 (2026)
Title 6.5. Protection of Charitable Assets
Subtitle 1
§ 6.5-105LinkCopy Citation
An action to enforce this title shall be brought within 3 years after the alleged violation occurred.