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FINANCE—ENDOWMENTS & INVESTMENTS

Our experience dealing with endowment gives us a sound basis on the variety of issues that arise around the investment of donated funds. The firm has been vigorously involved in the adoption and implementation of the Uniform Prudent Management of Institutional Funds Act in various states. We have performed many restricted fund audits, which enable us to inform governing boards and investment advisors on how best to allocate and invest funds. Legal restrictions on donated funds are often mischaracterized and limit spending flexibility. Reviews can often result in the freeing-up of funds from needless constraints, making more assets available for our clients’ use.

Nixon Peabody has an in-depth understanding of the laws concerning investment, use, and spending of:

  • Endowment
  • Quasi-endowment
  • Charitable trusts
  • Support foundations
  • Other restricted funds

Representative experience

  • We were one of the first law firms to address the complications arising out of the nexus between the Uniform Management of Institution Funds Act and accounting pronouncements FAS Nos. 116 and 117, more than a decade ago. Since then, we have been involved in resolving a number of disputes with respect to the investment and expenditure of charitable funds.
  • We have worked with more than a dozen educational and other charitable institutions on the reconfiguration of their underwater endowments, and donor relations in this challenging investment environment. The approaches are as broad as the range of institutions, but all involve a deep understanding of the interplay between the development and the finance offices.
  • One of our attorneys has been the regular presenter for more than a decade to the annual meeting of the New York State Society of Certified Public Accountants on legal developments with respect to charities, most recently addressing investments by charitable institutions as well.

    • Thought Leadership/Alerts

    UPMIFA Guide for Florida Not-For-Profit Corporations
    Nonprofit Organizations Alert | August 25, 2011

    Are bigger stop signs really needed?
    Nonprofit Organizations Alert | August 10, 2011

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    Media Clips

      • Upstate New York Startup Capital is Scarce
        Democrat and Chronicle | November 30, 2012

        Leader of the firm’s Nonprofit Organizations practice Mike Cooney discusses alternative sources of funding for startups—including investments from charitable foundations—in this feature article discussing the state of the Upstate New York market for startup capital.
      . . . Hide Media Clips . . .

      Events

      Finance—Endowments & Investments