Uniform Prudent Management of Institutional Funds Act

As of today, 49 jurisdictions have adopted UPMIFA as law and the Uniform Act is presently pending in an additional jurisdiction. In most of the United States, attorneys representing nonprofit institutions and those who donate to them and their endowment funds are governed by new state law which replaced the Uniform Management of Institutional Funds, which had been the law in 47 states since 1972.

This OnDemand Webinar will help you cope with a new set of legal requirements. In this currently challenging economy, the UPMIFA provides nonprofit institutions with the legal authority to make prudent expenditures despite having endowment funds which have asset value below their original or historical dollar value, underwater funds. Learn how new spending rules requiring application of the seven factors of prudence change the legal landscape for all nonprofit institutions. Learn how to draft around UPMIFA, conform to the new legal requirements and deal with the new and very different auditing requirements for financial statement preparation. Learn how to modify or eliminate outmoded and wasteful restrictions that hinder operations and effective spending policies for nonprofits.

Authors

Agenda

UPMIFA Introduction

• History - Including UMIFA
• Economic Impact

Terminology

• Endowment Restrictions
• Use Restrictions
• Quasi Endowment

UPMIFA Changes

• Elimination of Historical Dollar Value
• Changes in Prudent Spending Policy
• Release or Modification of Restrictions

UPMIFA Accounting Rules

• FSP-FASB 117-1
• Permanently Restricted Funds and Other Asset Classifications
• Spending From Underwater Funds

Enactment

• 49 Jurisdictions Already Have UPMIFA as Enacted Law
• Legislative Action Is Pending In One State In 2011

Additional Formats