ERIC Number: ED198757
Record Type: Non-Journal
Publication Date: 1980-Aug
Reference Count: N/A
Uniform Management of Institutional Funds Act.
NACUBO Administrative Service/Supplement, v2 n2 Aug 1980
The purpose and provisions of the Uniform Management of Institutional Funds Act are analyzed, and the full text of the Act is presented. The Act was drafted in 1972 to remove uncertainties with respect to the nature of eleemosynary corporations, particularly colleges and universities and to the powers of their governing boards in the area of investment management. The Act provides: (1) a standard of prudent use of appreciation in invested funds; (2) specific investment authority; (3) authority of delegate investment decisions; (4) a standard to business care and prudence to guide governing boards in the exercise of their duties under the Act; and (5) a method of releasing restrictions on use of funds or selection of investments by donor acquiescence or court action. The Act is relevant to colleges and universities that have sought to make more effective use of endowment and other investment funds, and which have faced uncertainties in the law in most jurisdictions. The National Association of College and University Business Officers endorsed the Act when it was drafted and encouraged all institutions to assist in obtaining passage by their own state legislatures. Since 1972, the Act has been enacted in 28 states and the District of Columbia. (SW)
Descriptors: College Administration, Educational Economics, Endowment Funds, Financial Policy, Governing Boards, Higher Education, Investment, Legal Responsibility, Money Management, Nonprofit Organizations, School Funds, State Legislation
National Association of College and University Business Officers, One Dupont Circle, Suite 540, Washington, DC 20036.
Publication Type: Opinion Papers; Legal/Legislative/Regulatory Materials
Education Level: N/A
Authoring Institution: National Association of College and University Business Officers, Washington, DC.