For the purposes of this chapter, the term:
(1) "Charitable purpose" means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of a governmental purpose, or any other purpose the achievement of which is beneficial to the community.
(2) "Endowment fund" means an institutional fund or part thereof that, under the terms of a gift instrument, is not wholly expendable by the institution on a current basis. The term "endowment fund' ' does not include assets that an institution designates as an endowment fund for its own use.
(3) "Gift instrument" means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund.
(4) "Institution" means:
(A) A person, other than an individual, organized and operated exclusively for charitable purposes;
(B) A government or governmental subdivision, agency, or instrumentality, to the extent that it holds funds exclusively for a charitable purpose; or
(C) A trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated.
(5) "Institutional fund" means a fund held by an institution exclusively for charitable purposes. The term "institutional fund" does not include:
(A) Program-related assets;
(B) A fund held for an institution by a trustee that is not an institution; or
(C) A fund in which a beneficiary that is not an institution has an interest, other than an interest that could arise upon violation or failure of the purposes of the fund.
(6) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.
(7) "Program-related asset" means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for investment.
(8) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(Jan. 23, 2008, D.C. Law 17-69, § 2, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 2 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Legislative History of Laws
Law 17-69, the "Uniform Prudent Management of Institutional Fund Act of 2007", was introduced in Council and assigned Bill No. 17-145 which was referred to the Committee on Public Safety and Judiciary. The Bill was adopted on first and second readings on October 23, 2007, and November 6, 2007, respectively. Signed by the Mayor on November 19, 2007, it was assigned Act No. 17-181 and transmitted to both Houses of Congress for its review. D.C. Law 17-69 became effective on January 23, 2008.
(a) Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.
(b) In addition to complying with the duty of loyalty imposed by law other than this chapter, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.
(c) In managing and investing an institutional fund, an institution:
(1) May incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and
(2) Shall make a reasonable effort to verify facts relevant to the management and investment of the fund.
(d) An institution may pool 2 or more institutional funds for purposes of management and investment.
(e) Except as otherwise provided by a gift instrument, the following rules shall apply:
(1) In managing and investing an institutional fund, the following factors, if relevant, shall be considered:
(A) General economic conditions;
(B) The possible effect of inflation or deflation;
(C) The expected tax consequences, if any, of investment decisions or strategies;
(D) The role that each investment or course of action plays within the overall investment portfolio of the fund;
(E) The expected total return from income and the appreciation of investments;
(F) Other resources of the institution;
(G) The needs of the institution and the fund to make distributions and to preserve capital; and
(H) An asset's special relationship or special value, if any, to the charitable purposes of the institution.
(2) Management and investment decisions about an individual asset shall be made not in isolation but rather in the context of the institutional fund's portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.
(3) Except as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with this section.
(4) An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.
(5) Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this chapter.
(6) A person that has special skills or expertise, or is selected in reliance upon the person's representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.
(Jan. 23, 2008, D.C. Law 17-69, § 3, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 3 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Legislative History of Laws
For Law 17-69, see notes following § 44-1631.
(a)(1) Subject to the intent of a donor expressed in the gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established.
(2) Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution.
(3) In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:
(A) The duration and preservation of the endowment fund;
(B) The purposes of the institution and the endowment fund;
(C) General economic conditions;
(D) The possible effect of inflation or deflation;
(E) The expected total return from income and the appreciation of investments;
(F) Other resources of the institution; and
(G) The investment policy of the institution.
(b) To limit the authority to appropriate for expenditure or accumulate under subsection (a) of this section, a gift instrument shall specifically state the limitation.
(c) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income", "interest", "dividends", or "rents, issues, or profits", or "to preserve the principal intact", or words of similar import:
(1) Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and
(2) Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a) of this section.
(Jan. 23, 2008, D.C. Law 17-69, § 4, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 4 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Legislative History of Laws
For Law 17-69, see notes following § 44-1631.
(a) Subject to any specific limitation set forth in a gift instrument or in law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(c) An institution that complies with subsection (a) of this section is not liable for the decisions or actions of an agent to which the function was delegated.
(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of the District of Columbia, an agent submits to the jurisdiction of the courts of the District of Columbia in all proceedings arising from or related to the delegation or the performance of the delegated function.
(e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of the District of Columbia other than this chapter.
(Jan. 23, 2008, D.C. Law 17-69, § 5, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 5 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Legislative History of Laws
For Law 17-69, see notes following § 44-1631.
(a) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.
(b)(1) The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if:
(A) The restriction has become impracticable or wasteful;
(B) The restriction impairs the management or investment of the fund; or
(C) Because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund.
(2) The institution shall notify the Attorney General for the District of Columbia of the application, and the Attorney General for the District of Columbia shall be given an opportunity to be heard.
(3) To the extent practicable, any modification shall be made in accordance with the donor's probable intention.
(c)(1) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument.
(2) The institution shall notify the Attorney General for the District of Columbia of the application, and the Attorney General for the District of Columbia shall be given an opportunity to be heard.
(d) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, 60 days after notification to the Attorney General for the District of Columbia, may release or modify the restriction, in whole or part, if:
(1) The institutional fund subject to the restriction has a total value of less than $50,000, subject to adjustment pursuant to subsection (e) of this section;
(2) More than 20 years have elapsed since the fund was established; and
(3) The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.
(e) The dollar amount specified in subsection (d)(1) of this section shall be adjusted to reflect changes in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor ("Index"), using 2007 as the base year, as follows:
(1) The dollar amount shall be adjusted as of January 1st of each year if the cumulative percentage of change in the Index, from the base year or from a later year that was the basis of an adjustment of this amount pursuant to this subsection, rounded to the nearest whole percentage point, is in excess of 10%.
(2) The amount of any adjustment shall be rounded to the nearest $5,000.
(3) The dollar amount shall not be reduced below $50,000.
(4) No adjustment to the dollar amount shall occur before January 1, 2009.
(Jan. 23, 2008, D.C. Law 17-69, § 6, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 6 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Legislative History of Laws
For Law 17-69, see notes following § 44-1631.
Compliance with this chapter is determined in light of the facts and circumstances existing at the time a decision is made or action is taken.
(Jan. 23, 2008, D.C. Law 17-69, § 7, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 7 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Legislative History of Laws
For Law 17-69, see notes following § 44-1631.
This chapter applies to institutional funds existing on or established after January 23, 2008. As applied to institutional funds existing on January 23, 2008, this chapter governs only decisions made or actions taken on or after that date.
(Jan. 23, 2008, D.C. Law 17-69, § 8, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 17-69, see notes following § 44-1631.
Uniform Law
This section is based upon § 8 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, approved June 30, 2000 (114 Stat. 467; 15 U.S.C. § 7001 et seq.), but does not modify, limit, or supersede section 101(a) of that act (15 U.S.C. § 7001(a)) or authorize electronic delivery of any of the notices described in section 103(b) of that act (15 U.S.C. § 7003(b)).
(Jan. 23, 2008, D.C. Law 17-69, § 9, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 9 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Legislative History of Laws
For Law 17-69, see notes following § 44-1631.
In applying and construing this chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
(Jan. 23, 2008, D.C. Law 17-69, § 10, 54 DCR 11650.)
HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 10 of the Uniform Prudent Management of Institutional Funds Act of 2007. See 7A, Pt. III, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Legislative History of Laws
For Law 17-69, see notes following § 44-1631.
Refs & Annos
Jurisdiction |
Laws |
Effective Date |
Statutory Citation |
Alabama |
2008, Act 2008-276 |
1-1-2009 |
Code 1975, §§ 19-3C-1 to 19-3C-10. |
Alaska |
2010, c. 66 |
9-8-2010 |
AS §§ 13.65.010 to 13.65.095. |
Arizona |
2008, c. 30 |
9-26-2008 |
A.R.S. §§ 10-11801 to 10-11806. |
Arkansas |
2009, Act 262 |
7-31-2009 |
A.C.A. §§ 28-69-801 to 28-69-812. |
California |
2008, c. 715 |
1-1-2009 |
West's Ann.Cal.Probate Code, §§ 18501 to 18510. |
Colorado |
2008, c. 164 |
9-1-2008 |
West's C.R.S.A. §§ 15-1-1101 to 15-1-1110. |
Connecticut |
2007, P.A. No. 07-91 |
10-1-2007 |
C.G.S.A. §§ 45a-535 to 45a-535i. |
Delaware |
2007, c. 159 |
7-31-2007 |
12 Del.C. §§ 4701 to 4710. |
District of Columbia |
D.C. Law 17-69 |
1-23-2008 |
D.C. Official Code, 2001 Ed. §§ 44-1631 to 44-1639. |
Florida |
2011-170 |
7-1-2012 |
F.S.A. § 617.2104. |
Georgia |
2008, c. 423 |
7-1-2008 |
O.C.G.A. §§ 44-15-1 to 44-15-8. |
Hawaii |
2009, c. 135 |
7-1-2009 |
HRS §§ 517E-1 to 517E-9. |
Idaho |
2007, c. 173 |
7-1-2007 |
I.C. §§ 33-5001 to 33-5010. |
Illinois |
2009, P.A. 96-29 |
6-30-2009 |
S.H.A. 760 ILCS 51/1 to 51/10. |
Indiana |
2007, c. 226 |
7-1-2007 |
West's A.I.C. 30-2-12-1 to 30-2-12-18. |
Iowa |
2008, ch. 1066 |
7-1-2008 |
I.C.A. §§ 540A.101 to 540A.109. |
Kansas |
2008, c. 20 |
7-1-2008 |
K.S.A. 58-3611 to 58-3620. |
Kentucky |
2010, c. 34 |
7-15-2010 |
KRS 273.600 to 273.645. |
Louisiana |
2010, No. 168 |
7-1-2010 |
LSA-R.S. 9:2337.1 to 9:2337.10. |
Maine |
2009, c. 450 |
7-1-2009 |
13 M.R.S.A. §§ 5100 to 5111. |
Maryland |
2009, c. 134 |
4-14-2009 |
Code, Estates and Trusts, §§ 15-401 to 15-410. |
Massachusetts |
2009, c. 29 |
7-2-2009 |
M.G.L.A. c. 180A, §§ 1 to 9. |
Michigan |
2009, P.A. 87 |
9-10-2009 |
M.C.L.A. §§ 451.921 to 451.931. |
Minnesota |
2008, c. 188 |
8-1-2008 |
M.S.A. §§ 309.73 to 309.77. |
Missouri |
2009, H.B. No. 239 |
V.A.M.S. §§ 402.130 to 402.148. |
|
Montana |
2007, c. 421 |
10-1-2007 |
M.C.A. 72-30-101 to 72-30-213. |
Nebraska |
2007, L.B. 136 |
9-1-2007 |
R.R.S. 1943, §§ 58-610 to 58-619. |
Nevada |
2007, c. 55 |
10-1-2007 |
NRS 164.640 to 164.680. |
New Hampshire |
2008, c. 75 |
7-1-2008 |
RSA 292-B:1 to 292-B:10. |
New Jersey |
2009, c. 64 |
6-10-2009 |
N.J.S.A. 15:18-25 to 15:18-34. |
New Mexico |
2009, c. 130 |
7-1-2009 |
NMSA 1978, §§ 46-9A-1 to 46-9A-10. |
New York |
2010, c. 490 |
9-17-2010 |
McKinney's N-PCL, §§ 550 to 558. |
North Carolina |
S.L.2009-8 |
3-19-2009 |
G.S. §§ 36E-1 to 36E-11. |
North Dakota |
2009, c. 589 |
4-22-2009 |
NDCC 59-21-01 to 59-21-08. |
Ohio |
2008, H.B. No. 522 |
6-1-2009 |
R.C. §§ 1715.51 to 1715.59. |
Oklahoma |
2007, c. 91 |
11-1-2007 |
60 Okl.St.Ann. §§ 300.11 to 300.20. |
Oregon |
2007, c. 554 |
1-1-2008 |
ORS 128.305 to 128.336. |
Rhode Island |
2009, chs. 61, 63 |
6-30-2009 |
Gen.Laws 1956, §§ 18-12.1-1 to 18-12.1-10. |
South Carolina |
2008, c. 289 |
7-1-2008 |
Code 1976, §§ 34-6-10 to 34-6-100. |
South Dakota |
2007, c. 283 |
7-1-2007 |
SDCL 55-14A-1 to 55-14A-10. |
Tennessee |
2007, c. 186 |
7-1-2007 |
T.C.A. §§ 35-10-201 to 35-10-210. |
Texas |
2007, c. 834 |
9-1-2007 |
V.T.C.A. Property Code, §§ 163.001 to 163.011. |
Utah |
2007, c. 59 |
4-30-2007 |
U.C.A.1953, 51-8-101 to 51-8-604. |
Vermont |
2009, No. 9 |
5-5-2009 |
14 V.S.A. §§ 3411 to 3420. |
Virgin Islands |
2010, No. 7150 |
1-1-2011 |
15 V.I.C. §§ 8-101 to 8-203. |
Virginia |
2008, c. 184 |
7-1-2008 |
Code 1950, §§ 55-268.11 to 55-268.20. |
Washington |
2009, c. 436 |
5-11-2009 |
West's RCWA 24.55.005 to 24.55.900. |
West Virginia |
2008, c. 105 |
6-4-2008 |
Code, 44-6A-1 to 44-6A-10. |
Wisconsin |
2009, c. 33 |
8-4-2009 |
W.S.A. 112.11. |
Wyoming |
2009, c. 185 |
3-12-2009 |
Wyo.Stat.Ann. §§ 17-7-301 to 17-7-307. |
[FN*] Date of approval.
