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Covington & Burling

Smithsonian Institution
April 18, 1972
Page Twelve

must distribute currently to income beneficiaries their lawful shares; 28/ (4) directors of charitable institutions generally delegate investment duties to an investment committee, retaining only supervisory control, whereas trustees are forbidden to delegate their investment duties; 29/ (5) charitable institutions, unlike trustees of private trusts, generally are not required by local law to qualify as trustees, post bond, or account to a probate court, and they generally will not be entitled to statutory fees as testamentary trustees; 30/ (6) charitable institutions conduct litigation in their institutional names, whereas trustees conduct litigation in their own names; 31/ (7) a charitable institution, rather than its directors or trustees, is the party to a contract; 32/ and (8) charitable institutions, unlike trustees, normally will be considered as having all the implied powers necessary to carry out their mandate. 33/ These characteristics are not exhaustive of those shared by charitable institutions and business corporations. 34/
Trustees of private trusts clearly are obligated to try and preserve the purchasing power of principal assets. 35/ Indeed, some courts, for reasons of inflation or otherwise, will authorize trustees to deviate from the