Sunday, May 5, 2024
Charitable Organizations

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



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