What is UPMIFA?
The Uniform Prudent Management of Institutional Funds (UPMIFA) was introduced in the New York State Legislature in 2009. As of this writing it has not been enacted into law. Among other things, UPMIFA would permit a not-for-profit corporation to spend its endowment funds if the board of directors determined that such spending was prudent after considering several enumerated factors. The spending of endowment funds would be permitted without court approval in some cases in which court approval is required under current law. The Attorney General’s Charities Bureau is monitoring the status of UPMIFA in the Legislature and will issue further guidance at the appropriate time.
