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Article Archives >> Ready Reference >> August 2003

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UMIFA Sets Rules for Charitable Endowments
Proposed changes would expand factors to be considered for standard of care, would allow donors to enforce restrictions, and ease process of removing restrictions in certain cases

Excerpt
The Unifrom Mangement of Institutional Funds Act, first promulgated by the National Conference of Commissioners on Uniform State Laws in 1972 and subsequently adopted in the same or modified form by 46 states, has long established the basic rules of mangement of charitable endowments.

In simple and direct language, the Act defines an "institutional fund", provides broad powers of investment, permits delegation of investment management, establishes a prudent investor standard for investment managers, and deals with the release of restrictions.

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Article Archives >> Ready Reference >> August 2003