Monday, July 6, 2009
According to a story in the Boston Globe, Massachusetts recently became the latest state to adopt the Uniform Prudent Management of Institutional Funds Act. The action leaves only Florida, Pennsylvania and Louisiana as the three states that have not adopted UPMIFA, according to the Uniform Law Commission's website. Although the Commission approved the act in 2006, well before the current economic downturn, the Massachusettes media is touting the enactment as a relief provision particularly because of provisions in the act that allow nonprofits easier access to restricted funds:
“In these difficult economic times this law will be a helpful tool for nonprofits across the Commonwealth,’’ said Kimberly Haberlin, a spokeswoman for Patrick.The measure updates decades-old endowment laws governing how organizations manage and use donations. Such funds usually have restrictions governing how they are spent, said Jennifer Ryan, legislative director for the Massachusetts Audubon Society. Her organization helped push the measure, which is officially known as the Uniform Prudent Management of Institutional Funds Act, but which many have been calling the “nonprofit sustainability act.’’ Those who work in the state’s nonprofit sector hope the updated law will aid organizations that might otherwise have had to drop programs or pare staff because of the recession.