Schedule a Free Consultation
Categories
News Trusts

Why California Families Need to Understand Standing in Charitable Trust Disputes: Key Takeaways from Autonomous Region of Narcotics Anonymous v. NAWS

Why California Families Need to Understand Standing in Charitable Trust Disputes: Key Takeaways from Autonomous Region of Narcotics Anonymous v. NAWS

Why California Families Need to Understand Standing in Charitable Trust Disputes: Key Takeaways from Autonomous Region of Narcotics Anonymous v. NAWS

If you’re a California resident managing charitable assets, serving on a nonprofit board, or creating a revocable trust for philanthropic purposes, understanding who has the legal right to enforce trust terms is critical to protecting your legacy and avoiding costly litigation.

What This Case Means for You

The California Court of Appeal recently clarified an important limitation on who can sue to enforce charitable trusts. In Autonomous Region of Narcotics Anonymous v. Narcotics Anonymous World Services, Inc. (Case No. B309376, filed April 25, 2022), the Second District Court of Appeal ruled that the common law doctrine of “special interest standing”—which allows certain parties with a special interest to enforce charitable trusts—does not apply to revocable trusts.

The Facts: Who Can Challenge a Charitable Trust?

Members of Narcotics Anonymous created a Fellowship with hundreds of thousands of participants worldwide. In 1993, at their bi-annual World Service Conference, they established a revocable charitable trust to manage the organization’s literature and intellectual property.

A regional delegate group (the Petitioner) later alleged that the trustee—Narcotics Anonymous World Services, Inc.—breached its fiduciary duties. The regional group sought to distribute trust assets and enforce what they believed were their rights as stakeholders.

The trial court disagreed. It found that the Fellowship itself, not individual regional groups, was the settlor of the trust. Because the trust was revocable, the regional group had no special standing to sue.

The Appellate Court’s Ruling

The California Court of Appeal affirmed the trial court’s decision, establishing two key principles:

  • No special interest standing for revocable charitable trusts: Unlike irrevocable charitable trusts, revocable trusts do not grant third parties standing to enforce trust terms based solely on a “special interest” in the trust’s mission.
  • Only the true settlor has enforcement rights: The court confirmed that the Fellowship—acting through its World Service Conference—was the sole settlor with the power to modify or enforce the trust, not individual regional delegates.

    • Why This Matters for California Families and Nonprofit Leaders

    This case answers critical questions for anyone involved in charitable giving or nonprofit governance:

  • Can stakeholders sue if they disagree with how a charitable trust is managed? Not if the trust is revocable. Only the settlor (or beneficiaries, in some cases) can enforce a revocable charitable trust.
  • What’s the difference between revocable and irrevocable charitable trusts? Revocable trusts give the settlor ongoing control and limit who can challenge the trustee. Irrevocable trusts, once established, may grant broader enforcement rights to interested parties.
  • How should I structure my charitable trust to avoid disputes? Clearly define who has the power to act as settlor and under what circumstances. Ambiguity in trust language can lead to expensive litigation.

    • Real-World Application: Protecting Your Philanthropic Legacy

    If you’re creating a charitable trust in California, this ruling highlights the importance of:

  • Choosing between a revocable or irrevocable structure based on your control preferences and who you want to have enforcement rights
  • Clearly documenting settlor authority in the trust instrument
  • Understanding that revocable trusts offer more flexibility but limit third-party enforcement
  • Working with experienced California estate planning attorneys who understand charitable trust law and can help prevent future disputes

    • Case Details

  • Case Citation: B309376
  • Filed: April 25, 2022
  • Court: California Court of Appeal, Second District, Division Eight
  • Author Analysis: Jaime B. Herren, Holland & Knight LLP
  • Legal Principle: Charitable Trusts – No Special Interest Standing for Revocable Trusts

    • Source: California Lawyers Association – Autonomous Region v. NAWS

    Full Opinion: Read the complete Second District Court of Appeal opinion (PDF)

    How California Probate and Trust, PC Can Help

    At California Probate and Trust, PC, we help California residents and families navigate the complexities of charitable trusts, estate planning, and probate litigation. Whether you’re establishing a philanthropic legacy, serving as a trustee, or facing a trust dispute, our experienced attorneys provide transparent guidance and personalized solutions.

    We offer:

  • Free estate planning consultations to assess your needs
  • Clear guidance on revocable vs. irrevocable trust structures
  • Trust administration and fiduciary duty compliance
  • Dispute resolution and probate litigation when necessary

    • Contact us today to schedule your free consultation and protect what matters most to your family.

    Legal Disclaimer

    This article is provided for informational purposes only and does not constitute legal advice. The information contained herein is based on California law as of the publication date and may not reflect the most current legal developments. Each situation is unique, and you should consult with a qualified California estate planning attorney before making decisions about charitable trusts, estate planning, or trust administration. No attorney-client relationship is created by reading this article or contacting California Probate and Trust, PC for information.