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Abstract: 

The Uniform Prudent Management of Institutional Funds Act (UPMIFA) was adopted by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in 2006. As of the fall of 2012, it has been enacted in 49 states, the District of Columbia, and the U.S. Virgin Islands. Only Pennsylvania and Puerto Rico have not yet introduced the legislation. UPMIFA provides much needed flexibility on endowment spending for charities and easier and clearer rules for managing and investing charitable funds. This article briefly discusses who is subject to UPMIFA, new rules for endowment spending, new rules for eliminating restrictions on “small old funds” and new rules for investment management and delegation.

Keywords: Total return investing; New Prudent Spending Rule; diversified portfolio requirement

Affiliations:  1: Wilmington Trust Company.