UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT
K.S.A. ch. 58, art. 36
in effectK.S.A. 58-3602
K.S.A. 58-3603 through 58-3609
K.S.A. 58-3610 Citation of act.
58-3610. Citation of act.
This act may be cited as the "uniform management of institutional funds act."
L. 1973, ch. 226, § 10; July 1.
Revisor's Note:
This statute should have been repealed when the uniform management of institutional funds act was repealed.
K.S.A. 58-3611 Citation of act.
58-3611. Citation of act.
This act may be cited as the uniform prudent management of institutional funds act.
L. 2008, ch. 20, § 1; July 1.
K.S.A. 58-3612 Definitions.
58-3612. Definitions.
In this act:
(1) "Charitable purpose" means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of a governmental purpose or any other purpose the achievement of which is beneficial to the community.
(2) "Endowment fund" means an institutional fund or part thereof that, under the terms of a gift instrument, is not wholly expendable by the institution on a current basis. The term does not include assets that an institution designates as an endowment fund for its own use.
(3) "Gift instrument" means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund.
(4) "Institution" means:
(A) A person, other than an individual, organized and operated exclusively for charitable purposes;
(B) a government or governmental subdivision, agency or instrumentality, to the extent that it holds funds exclusively for a charitable purpose; or
(C) a trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated.
(5) "Institutional fund" means a fund held by an institution exclusively for charitable purposes. The term does not include:
(A) Program-related assets;
(B) a fund held for an institution by a trustee that is not an institution; or
(C) a fund in which a beneficiary that is not an institution has an interest, other than an interest that could arise upon violation or failure of the purposes of the fund.
(6) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.
(7) "Program-related asset" means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for investment.
(8) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
L. 2008, ch. 20, § 2; July 1.
K.S.A. 58-3613 Standard of conduct in managing and investing institutional fund.
58-3613. Standard of conduct in managing and investing institutional fund.
(a) Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.
(b) In addition to complying with the duty of loyalty imposed by law other than this act, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.
(c) In managing and investing an institutional fund, an institution:
(1) May incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution and the skills available to the institution; and
(2) shall make a reasonable effort to verify facts relevant to the management and investment of the fund.
(d) An institution may pool two or more institutional funds for purposes of management and investment.
(e) Except as otherwise provided by gift instrument, the following rules apply:
(1) In managing and investing an institutional fund, the following factors, if relevant, must be considered:
(A) General economic conditions;
(B) the possible effect of inflation or deflation;
(C) the expected tax consequences, if any, of investment decisions or strategies;
(D) the role that each investment or course of action plays within the overall investment portfolio of the fund;
(E) the expected total return from income and the appreciation of investments;
(F) other resources of the institution;
(G) the needs of the institution and the fund to make distributions and to preserve capital; and
(H) an asset's special relationship or special value, if any, to the charitable purposes of the institution.
(2) Management and investment decisions about an individual asset must be made not in isolation but rather in the context of the institutional fund's portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.
(3) Except as otherwise provided by law other than this act, an institution may invest in any kind of property or type of investment consistent with this section.
(4) An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.
(5) Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this act.
L. 2008, ch. 20, § 3; July 1.
K.S.A. 58-3614 Appropriation for expenditure or accumulation of endowment fund; rules of construction.
58-3614. Appropriation for expenditure or accumulation of endowment fund; rules of construction.
(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. 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 subsection (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 subsection (a).
L. 2008, ch. 20, § 4; July 1.
K.S.A. 58-3615 Delegation of management and investment functions.
58-3615. Delegation of management and investment functions.
(a) Subject to any specific limitation set forth in a gift instrument or in law other than this act, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:
(1) Selecting an agent;
(2) establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and
(3) periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(c) An institution that complies with subsection (a) is not liable for the decisions or actions of an agent to which the function was delegated.
(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.
(e) An institution may delegate management and investment functions to its committees, officers or employees as authorized by law of this state, other than this act.
L. 2008, ch. 20, § 5; July 1.
K.S.A. 58-3616 Release or modification of restrictions on management, investment or purpose.
58-3616. Release or modification of restrictions on management, investment or purpose.
(a) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.
(b) The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. The institution shall notify the attorney general of the application, and the attorney general must be given an opportunity to be heard. To the extent practicable, any modification must be made in accordance with the donor's probable intention.
(c) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the attorney general of the application, and the attorney general must be given an opportunity to be heard.
(d) If an institution determines that a restriction contained in a gift instrument on the management, investment or purpose of an institutional fund is unlawful, impracticable, impossible to achieve or wasteful, the institution, 60 days after notification to the attorney general, may release or modify the restriction, in whole or part, if:
(1) The institutional fund subject to the restriction has a total value of less than $50,000;
(2) more than 10 years have elapsed since the fund was established; and
(3) the institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.
(e) The dollar amount specified in subsection (d)(1) shall be adjusted to reflect changes in the consumer price index for all urban consumers, as published by the bureau of labor statistics of the department of labor (the "index"), using 2007 as the base year, as follows:
(1) The dollar amount shall be adjusted as of January 1 st of each year, if the cumulative percentage of change in the index, from the base year or from a later year that was the basis of an adjustment of this amount pursuant to this subsection, rounded to the nearest whole percentage point, is in excess of 10%;
(2) the amount of any adjustment shall be rounded to the nearest $5,000;
(3) the dollar amount in subsection (d)(1) shall not be reduced below $50,000; and
(4) no adjustment to this amount shall occur before January 1, 2009.
L. 2008, ch. 20, § 6; July 1.
K.S.A. 58-3617 Reviewing compliance.
58-3617. Reviewing compliance.
Compliance with this act is determined in light of the facts and circumstances existing at the time a decision is made or action is taken, and not by hindsight.
L. 2008, ch. 20, § 7; July 1.
K.S.A. 58-3618 Application to existing institutional funds.
58-3618. Application to existing institutional funds.
This act applies to institutional funds existing on or established after the effective date of this act. As applied to institutional funds existing on the effective date of this act this act governs only decisions made or actions taken on or after that date.
L. 2008, ch. 20, § 8; July 1.
K.S.A. 58-3619 Relation to electronic signatures in global and national commerce act.
58-3619. Relation to electronic signatures in global and national commerce act.
This act modifies, limits and supersedes the electronic signatures in global and national commerce act, 15 U.S.C. section 7001 et seq., but does not modify, limit or supersede section 101 of that act, 15 U.S.C. section 7001(a), or authorize electronic delivery of any of the notices described in section 103 of that act, 15 U.S.C. section 7003(b).
L. 2008, ch. 20, § 9; July 1.
K.S.A. 58-3620 Uniformity of application and construction.
58-3620. Uniformity of application and construction.
In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
L. 2008, ch. 20, § 10; July 1.
K.S.A. 58-3621 Citation of act; purpose.
58-3621. Citation of act; purpose.
(a) K.S.A. 58-3621 through 58-3625 , and amendments thereto, shall be known and may be cited as the donor intent protection act.
(b) The purpose of K.S.A. 58-3621 through 58-3625 , and amendments thereto, is to provide legal recourse to an individual charitable donor when the donor's gift restrictions pursuant to an endowment agreement with a recipient charitable organization that governs an endowment fund containing only property gifted by such donor are not followed by the recipient charitable organization.
L. 2023, ch. 45, § 1; July 1.
Cross References to Related Sections:
Uniform prudent management of institutional funds act, see 58-3611 et seq.
K.S.A. 58-3622 Definitions.
58-3622. Definitions.
For purposes of K.S.A. 58-3621 through 58-3625 , and amendments thereto:
(a) "Charitable organization" means an organization organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational or other specified purposes and that is exempt from federal income taxation as an entity described in section 501(c)(3) of the federal internal revenue code and maintains its principal office in Kansas.
(b) "Donor" means an individual who has made a gift of property to an existing endowment fund of a charitable organization or that establishes a new endowment fund of the charitable organization pursuant to terms of an endowment agreement that may include donor-imposed restrictions or conditions governing the use of the gifted endowment property or funds.
(c) "Donor-imposed restriction" means a written statement within an endowment agreement or institutional solicitation that specifies obligations on the management or purpose of the property gifted by the donor that are imposed by or accepted by the donor of the gift as a condition of the charitable organization's receipt of property pursuant to an endowment agreement.
(d) "Endowment agreement" means a written agreement between a donor and a charitable organization that gifts an endowment fund to a charitable organization or gifts property to an endowment fund of a charitable organization, and such donor is the only donor gifting such endowment fund or property to an endowment fund. An "endowment agreement" may include donor-imposed restrictions or conditions governing the use of the gifted endowment property or fund.
(e) "Endowment fund" means an institutional fund that, under the terms of an endowment agreement, is not wholly expendable by the charitable institution on a current basis and that only contains property gifted by a single donor. "Endowment fund" does not include assets that the charitable institution designates as an endowment fund for its own use.
(f) "Legal representative" means the administrator or executor of an individual's estate, a surviving spouse if there is a judicial settlement of the accounts of an individual's estate or any living, named individual designated in an endowment agreement to act in place of a party to an endowment agreement with respect to all matters expressed in such endowment agreement and all actions that such agreement contemplates, including, but not limited to, interpreting, performing and enforcing any provisions of such endowment agreement and defending the validity thereof.
(g) "Property" means real property, personal property or money, cryptocurrency, stocks, bonds or any other asset or financial instrument.
L. 2023, ch. 45, § 2; July 1.
K.S.A. 58-3623 Violation of donor-imposed restrictions prohibited; complaint of violation; jurisdiction, venue, damages, limitations; remedies available.
58-3623. Violation of donor-imposed restrictions prohibited; complaint of violation; jurisdiction, venue, damages, limitations; remedies available.
(a) Except where specifically required or authorized by federal or state law, including, but not limited to, K.S.A. 58-3616 , and amendments thereto, no charitable organization that accepts a contribution of property of an endowment fund or to an endowment fund pursuant to an endowment agreement that imposes a written donor-imposed restriction shall violate the terms of that restriction.
(b) If a charitable organization violates a donor-imposed restriction contained in an endowment agreement, the donor, or the donor's legal representative, may file a complaint within two years after discovery of the violation for breach of such agreement but not more than 40 years after the date of the endowment agreement that established the endowment fund. The complaint may be filed in a court of general jurisdiction in the county of this state where a charitable organization named as a party has its principal office or principal place of carrying out its charitable purpose or in the county of residence of the donor. The complaint may be filed whether or not the endowment agreement expressly reserves a right to sue or a right of enforcement. A complaint filed pursuant to K.S.A. 58-3621 through 58-3624 , and amendments thereto, shall not seek, or result in, a judgment awarding damages to the plaintiff.
(c) (1) If the court determines that a charitable organization violated a donor-imposed restriction, the court may order any remedy in law or equity that is consistent with and restores, to the extent possible, the donor's intent as expressed by the donor-imposed restrictions and conditions in the endowment agreement, including, but not limited to:
(A) Future compliance with or performance of donor-imposed restrictions or conditions on the use or expenditure of the gifted endowment property;
(B) restitution or restoration by the charitable organization of property to an endowment fund that has been expended or used by the charitable organization in contravention of donor-imposed restrictions;
(C) an accounting or the imposition of accounting requirements;
(D) restoration or a change to a name required by the donor-imposed restrictions;
(E) measures to preserve the property and value of the endowment fund;
(F) modification or release of a donor-imposed restriction or reformation or dissolution of the endowment agreement as permitted by Kansas law; or
(G) transfer of property from the endowment fund to another charitable organization as directed by the donor, but only if the transfer would not jeopardize or be inconsistent with the tax-exempt status of the original charitable organization. Nothing in this section shall conflict with or affect K.S.A. 58-3623(b), and amendments thereto.
(2) The court shall not order the return of donated funds to the donor or the donor's legal representative or estate.
L. 2023, ch. 45, § 3; July 1.
Cross References to Related Sections:
Uniform prudent management of institutional funds act, see 58-3611 et seq.
K.S.A. 58-3624 Judicial declaration of rights and duties.
58-3624. Judicial declaration of rights and duties.
A charitable organization may obtain a judicial declaration of rights and duties expressed in an endowment agreement containing donor-imposed restrictions as to all of the actions that such agreement contemplates, including, but not limited to, the interpretation, performance and enforcement of the agreement and determination of its validity as provided in K.S.A. 58-3616 , and amendments thereto. The charitable organization may also seek such declaration in any suit brought under this section.
L. 2023, ch. 45, § 4; July 1.
Cross References to Related Sections:
Uniform prudent management of institutional funds act, see 58-3611 et seq.
K.S.A. 58-3625 Application and construction of act.
58-3625. Application and construction of act.
The provisions of K.S.A. 58-3621 through 58-3624 , and amendments thereto, shall not apply to any release or modification of any donor restriction or purpose ordered or made pursuant to K.S.A. 58-3616 , and amendments thereto, prior to July 1, 2023, or to any appeal of any such release or modification that is pending on or after July 1, 2023. Nothing in this act affects the authority of the attorney general to enforce any restriction in an endowment agreement, limits the application of the judicial power of cy pres or alters the right of an institution to modify a restriction on the management, investment, purpose or use of an endowment fund in a manner permitted by the endowment agreement.
L. 2023, ch. 45, § 5; July 1.
Cross References to Related Sections:
Uniform prudent management of institutional funds act, see 58-3611 et seq.
Source: Kansas Office of Revisor of Statutes (ksrevisor.gov)URL: https://www.ksrevisor.gov/statutes/ksa_ch58.htmlFetched: 10/20/2026