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What legal requirements regulate endowments?

April 26, 2017endowments Legal regulate requirements

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What legal requirements regulate endowments?

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A. The Uniform Management of Institutional Funds Act (UMIFA) adopted in 1985 in North Carolina prohibits the spending of the endowment corpus. The total return on the endowment investment (capital appreciation and income) may be spent. The amount available for spending is limited to accumulated net earnings of an endowment. If no accumulated net earnings exist, regardless of the size of the endowment, no awards or spending can be made.