In 2017, former Major League Baseball pitcher Cole Hamels and his then-wife, Heidi, donated an extraordinary property to charity.
The unfinished mansion sat on more than 100 acres along Table Rock Lake in Missouri. It was approximately 32,000 square feet and had previously been listed for nearly $10 million.
The Hamels family gave the property to Camp Barnabas, a nonprofit that serves people with disabilities and chronic illnesses.
At the time, this was presented as something much bigger than a real estate donation.
Hamels said the property would have a “new legacy and vision.” He talked about the good it could do for children and families and expressed his hope that the gift would make an impact “for generations to come.”
Four years later, the charity sold it.
The property eventually went into foreclosure, and it is now being offered at a bank-ordered auction. From what the current reporting indicates, anyone with enough money can buy it and turn it into a private estate.
That is a long way from the lasting charitable legacy described when the gift was made.
And it raises a question I think every donor needs to consider:
If you leave money or property to charity, what guarantees that it will actually be used the way you intended?
The Property Was Not Supposed to Become a Summer Camp
Let’s clear up one detail first.
There is no indication that Cole or Heidi Hamels expected the mansion to become a summer camp. Camp Barnabas specifically said at the time that it did not plan to use the property for that purpose.
The organization was considering other uses connected to its charitable mission. Barnabas Prep, its educational program for young adults with special needs, was discussed as one possible use.
But the larger intent was clear.
The Hamels family believed the property would help the organization serve children and families. They spoke about it as a lasting legacy that would continue doing good long after they were gone.
Instead, the charity sold it approximately four years later.
We do not know from the available reporting exactly how the charity used the property while it owned it or what it did with the sale proceeds. It is entirely possible that the sale produced money the organization used for worthwhile charitable programs.
But we do know that the property itself did not become the multigenerational charitable legacy envisioned when the donation was announced.
Today, it is being auctioned as a luxury property to private buyers.
If You Give Something Away, You Give Away Control
Here is the problem.
When you give money or property directly to a charity, the charity generally takes control of it.
You may have discussed your goals with the organization. Everyone may understand what you hope the gift will accomplish. The charity’s current leadership may sincerely intend to follow your wishes.
But what happens five years from now?
What happens when the executive director leaves? What happens when the board changes? What happens when the organization eliminates a program, changes direction, merges with another charity, or runs into financial trouble?
The people making those decisions may have never met you.
They may not understand why you made the gift. Even if they understand, they may decide that the organization has more pressing priorities.
That does not necessarily mean anyone acted dishonestly. It means that circumstances and organizations change.
If your wishes were never built into the plan, the charity may have far more flexibility than you realized.
Hope Is Not an Estate Plan
I work with clients who want to make significant charitable gifts.
But they usually do not want to hand over an asset and simply hope for the best.
They want to accomplish something specific.
They may want to:
- Establish scholarships for students from a particular community
- Preserve land as open space
- Support a particular hospital department
- Fund services for children or adults with disabilities
- Maintain a religious or educational program
- Protect a historic property
- Provide continuing support for a local organization
- Make sure a gift benefits a specific group of people
The purpose matters.
In many cases, the purpose is the entire reason they are making the gift.
If that describes you, a conversation and a handshake are not enough. A letter explaining your wishes may not be enough. A press release discussing your charitable vision is certainly not enough.
Your intent needs to be part of the legal plan.
A Charitable Trust Can Protect Your Intent
A properly drafted charitable trust can turn your charitable wishes into binding instructions.
Instead of simply giving an organization an asset and allowing its future leadership to decide what happens, a charitable trust can mandate how the gift must be used.
Depending on your goals, the trust can specify:
- The charitable purpose the gift must support
- The people or community that should benefit
- How donated money may be spent
- How a donated property must be used
- Whether the property may be sold
- The conditions that must be met before a sale
- How the proceeds must be used if a sale occurs
- Which alternative charity should receive the funds if necessary
- Who is responsible for making sure your wishes are followed
That is the difference between a charitable hope and a charitable plan.
“I hope this property helps children for generations” is a wonderful sentiment.
“This property and any proceeds from its sale must be used to fund these specific programs for children” is an instruction.
The right charitable estate plan can provide those instructions.
What If the Original Plan Stops Working?
A good charitable plan also needs to anticipate change.
Suppose you leave a building to operate as a school, but zoning laws eventually make that impossible. Suppose you fund a specific medical program, but a future treatment eliminates the need for it. Suppose the charity you selected closes or stops performing the work you wanted to support.
You do not want the entire plan to fail.
You also do not want someone else to decide that your gift can now be used for anything.
The trust can provide your backup plan.
For example, it can say that if the original purpose becomes impossible, the money must support a closely related purpose. It can identify another organization to receive the property. It can permit a sale but require the proceeds to remain dedicated to the cause you selected.
You decide what the acceptable alternatives are while you are alive and able to make those decisions.
That is far better than leaving the question to a future board that may know very little about you or your priorities.
Ask This Question Before Making a Charitable Gift
Before making a significant charitable donation, ask yourself:
Do I care only that this charity receives the value, or do I care how that value is used?
Those are two very different goals.
If you simply want to support the organization and trust its leadership to use the gift wherever it is needed, an unrestricted donation may be exactly what you want.
There is nothing wrong with that.
But if you want your gift used for a particular program, population, property, or purpose, you need more than an outright transfer.
You need a charitable estate plan that protects your intent.
The Cole Hamels Property Is a Warning for Other Donors
The Cole Hamels story caught my attention because of how quickly the situation changed.
A nearly $10 million property was donated with the hope that it would create a lasting charitable legacy. The donors talked about helping children and families for generations.
Approximately four years later, the charity sold the property.
Today, it is headed to a public auction where it can be purchased as a private luxury estate.
Maybe the sale proceeds helped Camp Barnabas perform other valuable work. The available reporting does not tell us enough to evaluate that.
But the property’s future clearly did not unfold the way people might have expected when the gift was announced.
That is the lesson.
Your charitable intentions do not enforce themselves.
If you want a gift used in a particular way, you need a legal structure that says so.
Frequently Asked Questions About Charitable Trusts
What is a charitable trust?
A charitable trust is a legal arrangement created to hold and manage property for one or more charitable purposes. Its terms can define who should benefit, how the assets may be used, and what should happen if circumstances change.
Can a charitable trust control how a donation is used?
A properly drafted charitable trust can place binding restrictions on how money or property is used. It can identify a specific purpose, restrict a sale, control the use of sale proceeds, and provide alternatives if the original plan becomes impractical.
Can a charity sell donated property?
If property is given to a charity without enforceable restrictions, the charity may generally have the authority to sell it. If keeping the property or limiting its use is important to you, those requirements should be addressed as part of the gift and estate-planning documents.
What happens if the charity no longer follows my wishes?
That depends on how the gift was structured. A well-designed plan can identify who has authority to monitor and enforce the restrictions. Without an enforceable plan, family members may have limited ability to control how the charity uses the gift.
Should every charitable donation be made through a trust?
No. A charitable trust is generally unnecessary for an ordinary donation when you are comfortable allowing the charity to use the money at its discretion. It becomes more important when the gift is substantial or you have specific, long-term instructions.
The Bottom Line
I am a big believer in charitable giving.
But if you are going to leave a significant amount of money or valuable property to charity, you should decide whether you are giving the charity complete discretion or expecting it to accomplish something specific.
If you want the charity to decide how your gift will do the most good, that is fine.
If you want your gift used in a particular way, that is also fine—but you need a plan that makes it happen.
Do not rely on good intentions. Do not rely on current management. Do not assume that the people in charge decades from now will interpret your wishes the same way you do.
A properly drafted charitable trust can mandate how the gift is used, control what happens if property is sold, provide alternatives when circumstances change, and give the right people authority to protect your intent.
You worked hard to create the wealth or property you are giving away.
If the purpose of that gift matters to you, make sure your estate plan protects it.
This article is for general educational purposes and does not constitute legal or tax advice. Charitable gifts and trusts can create significant legal and tax consequences. Consult a qualified estate-planning attorney and tax advisor before making or restricting a substantial charitable gift.