Vermont Adopts Uniform Prudent Management of Institutional Funds Act

Vermont has enacted the Uniform Prudent Management of Institutional Funds Act.  2009 Vt. Laws No. 9.  A excerpt from a summary of the new law provided by the state’s legislature is posted below:

This act adopts the Uniform Prudent Management of Institutional Funds Act (UPMIFA), which was drafted by the National Conference of Commissioners on Uniform State Laws (NCCUSL) over a period of four years and was ultimately recommended for enactment by state legislatures in 2006. UPMIFA is designed to replace the existing Uniform Management of Institutional Funds Act (UMIFA), approved by NCCUSL in 1972.

Both investment in assets and expenditure for charitable purposes have grown exponentially in the 35 years since UMIFA was drafted; asset management theory and practice have also advanced. UPMIFA, as an update and successor to UMIFA, establishes a more unified basis for charitable fund management than UMIFA. To date, 30 states have adopted UPMIFA, and 16 more have introduced the act in 2009.

Vermont Legislature, Summary of the 2009 Acts: Act No. 9.