Which of the following statements about the Uniform Prudent Management of Institutional Funds Act (UPMIFA) is correct?
A) It establishes a maximum total return rate for investments.
B) It requires that the spending rate for the return on investments be no more than five percent.
C) It allows institutions to release net assets from restrictions if certain criteria are met.
D) It requires that specific policies concerning solicitation of donations be established.

Question

Quizplus · Accepted Answer

Option A is incorrect, as UPMIFA does not establish a maximum total return rate for investments. Option B is incorrect, as UPMIFA guidelines on spending rates vary, depending on the economic circumstances of the institution. Option D is incorrect, as UPMIFA does not require specific policies concerning solicitation of donations. Option C is correct, as UPMIFA allows institutions to release net assets from restrictions if certain criteria are met, such as the purpose of the restriction being fulfilled or the restriction becoming impracticable or impossible to fulfill.

Which of the Following Statements About the Uniform Prudent Management