Spending and Management of Endowments under UPMIFA

Adoption of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) has fundamentally changed the regulatory context in which boards make decisions regarding spending from underwater endowments.  AGB, in partnership with Commonfund Institute, surveyed 207 institutions in the 46 states and the District of Columbia that have adopted UPMIFA, collecting information about current and prior spending and governance practices.  The survey suggests that UPMIFA has enabled institutions to provide ongoing support for endowed purposes during a period of unprecedented financial hardship.  It also documents significant changes in spending practices following enactment of UPMIFA and suggests that boards may also be adapting other aspects of endowment management in response to the market events of the past two years and changing fiscal circumstances.

This survey provides the only national data on the ways higher education boards are managing spending under the new law and provides college and university boards and executives with important insights into the ways spending and governance practices are evolving.