Endowment Builders, LLC, consultants on endowment structuring, fundraising and management, encourages all non profits to review existing endowment funds, investment and spending policies, and accounting/reporting procedures. The following checklist provides a roadmap, helping you determine the modifications that should be implemented within your non-profit organization.

Checklist for Endowment Fund Review

1. Bring in expertise to review the new rules with your Board and finance/investment committee.
2. Review all endowment funds and determine whether they are donor-restricted or board restricted and whether the agreements impose specific expenditure restrictions that supercede UPMIFA.
3. Review your organization’s spending policy and consider necessary revisions to the policy to include a payout percentage formula and to track the language of the prudence factors listed in the Missouri or Illinois statutes.
4. Review your organization’s investment policy and consider including the prudence factors listed in the Missouri or Illinois statutes.
5. Review your organization’s endowment reporting to determine how endowment assets should be classified under UPMIFA.

While a full discussion of this topic is beyond the scope of this brief overview, Endowment Builders does encourage you and your non-profit organization to discuss any legal or accounting questions with your legal counsel and accounting/audit services professional.