On March 17, 2011, the New York State Attorney General’s Charities Bureau published “A Practical Guide to the New York Prudent Management of Institutional Funds Act” (the “Guide”). The Guide provides a summary of the New York Prudent Management of Institutional Funds Act (“NYPMIFA”) as well as practical guidance on its application. Although the Guide… Continue Reading
The CFA Institute has released guidance on the management of the financial resources of philanthropic organizations. Specifically, the CFA Institute developed the Investment Management Code of Conduct for Endowments, Foundations, and Charitable Organizations to specifically address the management of what are typically longer-term or permanent financial assets of these organizations. Board members and officers should be aware of the principles articulated in the Code of Conduct to successfully manage the investment of these types of assets and to ultimately protect the organization’s investments.
On September 17, 2010, New York State modified its laws governing the management and investment of charitable gifts by New York nonprofit institutions. Specifically, the NYS legislature adopted, subject to certain modifications, the Uniform Prudent Management of Institutional Funds Act. Importantly, officers should ensure that their Board is aware of all of the Act’s changes and that the relevant institutional policies, particularly investment policies, and practices are reviewed and revised accordingly.
After attending the Georgetown University Law Center “Representing & Managing Tax-Exempt Organizations” Conference in April, 2010, we wanted to discuss some of the lessons that exempt organizations should take away in the following areas: governance; transparency; compensation; joint ventures; and endowments and investments.
We tweeted live from the Georgetown Conference that occurred on April 22-23, 2010. Our tweets highlight IRS next steps and agenda items, as well as discuss other topics of interest to exempt organizations.
SEI reports that a recent poll shows a continued commitment to alternative investments by nonprofit organizations, including educational institutions, hospitals, private foundations, and community foundations. Conducted in December, 2009, the poll looked into the current investment management practices of nonprofit organizations, the challenges these organizations are facing, and how these organizations are prioritizing and addressing these concerns for 2010.
With the plethora of news articles about charitable endowment losses as a result of investments with Bernie Madoff, it is incumbent on fiduciaries to review some fundamental laws on endowment. These laws differ in each state. This article will briefly review the rules applicable to endowments in New York. An endowment fund is created when… Continue Reading