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UPMIFA Helping Underwater Endowments, but Governance Practices Need Improvement  


Author:  Alvi Aggarwal.


Source: Volume 10, Number 05, July/August 2011 , pp.1-2(2)




Family Foundation Advisor

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Abstract: 

At the end of 2009, an average of 22.4 % of the funds held by colleges and universities were “underwater,” according to a recent survey of 207 colleges, universities, and affiliated foundations conducted by the Association of Governing Boards of Universities and Colleges and the Commonfund Institute. The survey explored the effects of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) on the institutions' spending and governance practices regarding underwater funds. The survey suggests that UPMIFA is enabling charities to deal with market declines by allowing them more flexibility to distribute funds from “underwater” endowments.

Keywords: Uniform Prudent Management of Institutional Funds Act

Affiliations:  1: Attorney at Law.

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