Title 13.1. Corporations
Chapter 10. Virginia Nonstock Corporation Act
§ 13.1-918.1. (Effective January 1, 2027) Effect of any fundamental transaction.
A. Property held in trust or otherwise dedicated to a charitable purpose shall not be diverted from its trust or charitable purpose by any fundamental transaction except in compliance with the laws of the Commonwealth on cy pres or otherwise dealing with the non-diversion of charitable assets.
B. A person that is a member or is otherwise affiliated with a charitable corporation or other entity with a charitable purpose shall not receive a direct or indirect financial benefit in connection with a fundamental transaction unless the person is itself a charitable corporation or any other entity with a charitable purpose. This subsection does not apply to receipt of reasonable compensation for services rendered.
C. A devise, bequest, gift, grant, or promise contained in a will or other instrument, in trust or otherwise, made before or after a fundamental transaction to or for a charitable corporation or other entity with a charitable purpose that is the subject of the fundamental transaction, inures to the entity as it continues in existence after the transaction if it is a charitable corporation or other entity with a charitable purpose, subject to the express terms of the will or other instrument.
