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Abstract: 

Charitable organizations, such as foundations and endowments, have been seeking guidance on fiduciary responsibility and stewardship best practices for decades. Unlike the retirement plan sponsor community, which has been governed by the Employee Retirement Income Security Act (ERISA) since 1974, the foundation and endowment sector has lacked a clear-cut, straightforward outline of prudent processes for conforming to its fiduciary role. This status quo changed with the passage of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) in 2006, published by the National Conference of Commissionerson Uniform State Laws (NCCUSL). The enactment of UPMIFA as a model fiduciary law, and its subsequent adoption by nearly every U.S. state, was the impetus for creating a uniform set of fiduciary objectives and steps for foundations and endowments. This article addresses how UPMIFA and the newly published Stewardship Excellence Guidelines for Endowments and Foundations (the “Fiduciary Standard”) will change the game for foundations and endowments, as well as those investment advisors serving these organizations.

Keywords: Registered Investment Advisors [RIA]; charitable trusts; governance; certification

Affiliations:  1: Roland/Criss.