Call for Comments on Proposed Revisions to the Uniform Management of Institutional Funds Act
November 18, 2004
The National Conference of Commissioners on Uniform State Laws delayed approval of a revised Uniform Management of Institutional Funds Act (UMIFA) to allow the drafting committee to garner more input from interest groups. NACUBO is seeking comments by November 29.
UMIFA is one of a series of nonbinding “model” statutes recommended to individual state legislatures. Originally released in 1972, UMIFA prescribes a standard of care and prudence to guide governing boards in exercising their duties. It countermands two important tenets of trust law by specifically permitting endowment trustees to spend a prudent portion of realized endowment gains and to delegate investment discretion to qualified professionals. It has been adopted in 46 states and the District of Columbia.
Key issues that impact higher education endowments are:
- eliminating the concept of “historical gift value” as a minimum threshold below which endowed funds could not be spent;
- including a “prudence” standard specifying that spending within a defined range (2 percent to 7 percent) is prudent;
- including an “imprudence” standard, specifying that spending above 7 percent is imprudent;
- retroactively applying the revised act; and
- structuring UMIFA to cover trusts.
NACUBO would like to know what outcomes would be in the best interest of your institution and what information would inform the commission’s final decisions. Send comments to Anna Marie Cirino, associate director of financial management policy, by November 29. Please include your name, title, institution, and contact information.
- ED Proposes New Rules for Distance Education and Foreign Locations
- Senate Bill Would Increase Bank-Qualified Debt Limit
- New Statistics on College Enrollment and Completion Released
- 2016 CAO and CBO Collaborations
August 1-2, 2016
- 2016 Planning and Budgeting Forum
September 19-20, 2016
- 2016 Managerial Analysis and Decision Support
November 17-18, 2016
- ON-DEMAND: The CBO's Role in Diversity and Inclusion on Campus
- ON-DEMAND: The Clery Act: Strategic Planning to Mitigate Institutional Risk
- ON-DEMAND: Title IX: Key Issues Surrounding Institutional Compliance
- ON-DEMAND: NACUBO Live! Higher Education Accounting Forum
- ON-DEMAND: Responsibility Center Management: Two Different Perspectives