Publications

On September 17, 2010, New York State enacted the New York Prudent Management of Institutional Funds Act (“NYPMIFA”), its version of the Uniform Prudent Management of Institutional Funds Act (“UPMIFA”).   All not-for-profit corporations and certain trusts formed under New York law should take note of this legislation, which results in major amendments to the New York Not-for-Profit Corporation Law.  NYPMIFA applies to charitable institutions formed in New York and to New York trusts where the trustee is a charity, and updates prior law on investment conduct, expenditure of funds, delegation of management and investment, and release or modification of restrictions. 

This memorandum discusses the significant changes to the New York Not-For-Profit Corporation Law resulting from the enactment of NYPMIFA.  In Appendix A, we provide several hypothetical situations illustrating the impact of NYPMIFA’S enactment.  In Appendix B, we provide sample Board minutes recording a hypothetical decision to appropriate from an endowment fund.  In Appendix C, we provide a model letter for compliance with the notification provisions of NYPMIFA relating to appropriation.