(a) Subject to the intent of a donor expressed in the gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:
(1) the duration and preservation of the endowment fund;
(2) the purposes of the institution and the endowment fund;
(3) general economic conditions;
(4) the possible effect of inflation or deflation;
(5) the expected total return from income and the appreciation of investments;
(6) other resources of the institution; and
(7) the investment policy of the institution.
(b) To limit the authority to appropriate for expenditure or accumulate under paragraph (a), a gift instrument must specifically state the limitation.
(c) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income," "interest," "dividends," or "rents, issues, or profits," or "to preserve the principal intact," or words of similar import:
(1) create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and
(2) do not otherwise limit the authority to appropriate for expenditure or accumulate under paragraph (a).
2008 c 188 s 4; 2009 c 86 art 1 s 56
Structure Minnesota Statutes
Chapters 300 - 323A — Business, Social, And Charitable Organizations
Chapter 309 — Social And Charitable Organizations
Section 309.50 — Solicitation Of Charitable Funds; Definitions.
Section 309.52 — Statement Requirement.
Section 309.53 — Annual Report.
Section 309.531 — Registration Of Professional Fundraisers.
Section 309.533 — Investigations.
Section 309.55 — Prohibited Practices.
Section 309.556 — Public Disclosure Requirements.
Section 309.56 — Service Of Process.
Section 309.57 — District Court Jurisdiction, Penalties, Enforcement.
Section 309.581 — Violations; Penalties.
Section 309.582 — Consultants.
Section 309.59 — Construction; Powers Of Attorney General.
Section 309.591 — Rulemaking Power.
Section 309.60 — Reciprocal Agreements, Other States.
Section 309.61 — Severability.
Section 309.72 — Acquisition Of Interests In Insurance.
Section 309.735 — Definitions.
Section 309.74 — Standard Of Conduct In Managing And Investing Institutional Fund.
Section 309.75 — Delegation Of Management And Investment Functions.
Section 309.755 — Release Or Modification Of Restrictions On Management, Investment, Or Purpose.
Section 309.76 — Reviewing Compliance.
Section 309.765 — Application To Existing Institutional Funds.
Section 309.77 — Relation To Electronic Signatures In Global And National Commerce Act.