Nonprofit endowments require knowledge and resources

An endowment can help preserve and grow your nonprofit over the long term, even when economic storms threaten to shut it down. But you need to make sure you understand the regulations governing endowment spending and have the resources to manage investments. The Uniform Prudent Management of Institutional Funds Act (UPMIFA) regulates how nonprofits can spend unrestricted funds. The UPMIFA specifies the types of assets that can be spent and how much can be spent annually (generally between 4% and 7%). It also suggests ways to put older or obsolete endowments to practical use. Contact us for more information.