If your nonprofit has an endowment fund, you have probably heard of UPMIFA. But what exactly is UPMIFA? UPMIFA is the Uniform Prudent Management of Institutional Funds Act which was approved by the National Conference of Commissioners on Uniform State Laws in 2006 and replaced the Uniform Management of Institutional Funds Act (UMIFA) of 1972. …
When an organization receives communication that they have been included as a beneficiary in a donor’s will, it must determine if this represents an intention to give or an unconditional promise to give. This is imperative as it determines when the bequests are recognized as a contribution. Don’t miss: Top ten things to know about …
Here are twelve points on how to avoid endowment confusion. These points are in no particular order. (1) UPMIFA is a uniform law. Each state has adopted their own version of this law (except for Pennsylvania). See upmifa.org for more information. (2) If a permanent endowment goes underwater, the negative amount in unrestricted net assets is considered …