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 Releases College Ratings System Framework
- Recap: Top 10 Federal Policy Changes in 2014
- Obama Proposes Free Community College
- 2015 Endowment and Debt Management Forum
February 4-6, 2015
- 2015 Unrelated Business Income Tax
February 25-27, 2015
- ON-DEMAND: How to Build, Develop, and Support a Compliance Program at Your Institution
- ON-DEMAND: Strategic Tuition Assessment and Tuition Restructuring
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis