Uniform Prudent Management of Institutional Funds (UPMIFA)
Carol Kroch of Wilmington Trust explains UPMIFA:
“The Uniform Prudent Management of Institutional Funds Act (UPMIFA) was adopted by the National Conference of Commissioners on Uniform State Laws 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.”
UPMIFA replaced the original act (passed in 1972) and explains how fiduciaries (all foundation trustees and investment committee members) are required to make decisions.
Read about UPMIFA and what changed in 2012