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GiftLaw Pro Home   >  Chapter 7 - Charitable Organizations  >  7.3 Charitable Governance  >  7.3.2 Investment Responsibilities (UPMIFA)  >  Basic Quiz

Basic Quiz - 7.3.2 Investment Responsibilities (UPMIFA)

1. An endowment consists of gifts that are not wholly expendable on a current basis.
           
2. UPMIFA primarily governs the administration and investment of funds related to charitable remainder trusts.
           
3. A fiduciary is an individual or organization given the authority to act on behalf of another.
           
4. Under UPMIFA fiduciaries are subject to certain legal duties, such as the duty of care and the duty of loyalty.
           
5. UPMIFA does not allow the board to delegate the management and investment of the endowment fund to a professional investment manager.
           
6. If the organization delegates authority to an investment manager the investment manager sets the fund's investment objectives.
           
7. An investment policy statement will typically state the asset classes in which the fund manager should invest.
           
8. Reviewing the investment manager's progress on an annual basis is sufficient.
           
9. UPMIFA allows a charity to spend income generated by the endowment fund only if the balance of the fund is above the historic value.
           
10. Under UPMIFA, a charity has the power to modify or release restrictions on old funds holding small amounts under certain circumstances.