{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1102.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1102.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1102.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1102.html"}],"law_id":65845,"edition_id":1,"section_id":65845,"structure_id":14908,"section_number":"64.2-1102","catch_line":"Appropriation for expenditure or accumulation of endowment fund; rules of construction","history":"1973, c. 167, \u00a7\u00a7 55-268.2, 55-268.3; 2008, c. 184, \u00a7 55-268.14; 2012, c. 614.","full_text":"A\n\nSubject 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\n\nThe duration and preservation of the endowment fund;2\n\nThe purposes of the institution and the endowment fund;3\n\nGeneral economic conditions;4\n\nThe possible effect of inflation or deflation;5\n\nThe expected total return from income and the appreciation of investments;6\n\nOther resources of the institution; and7\n\nThe investment policy of the institution.B\n\nTo limit the authority to appropriate for expenditure or accumulate under subsection A, a gift instrument shall specifically state the limitation.C\n\nTerms 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\n\nCreate an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purposes of the fund; and2\n\nDo not otherwise limit the authority to appropriate for expenditure or accumulate under subsection A.","order_by":null,"text":{"0":{"id":239294,"text":"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:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":239295,"text":"The duration and preservation of the endowment fund;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":239296,"text":"The purposes of the institution and the endowment fund;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":239297,"text":"General economic conditions;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":239298,"text":"The possible effect of inflation or deflation;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":239299,"text":"The expected total return from income and the appreciation of investments;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":239300,"text":"Other resources of the institution; and","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":239301,"text":"The investment policy of the institution.","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"B"},"8":{"id":239302,"text":"To limit the authority to appropriate for expenditure or accumulate under subsection A, a gift instrument shall specifically state the limitation.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A7","next_prefix":"C"},"9":{"id":239303,"text":"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:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"10":{"id":239304,"text":"Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purposes of the fund; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"11":{"id":239305,"text":"Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection A.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1"}},"ancestry":[{"id":14908,"edition_id":1,"name":"Uniform Prudent Management of Institutional Funds Act","identifier":"11","label":"chapter","depth":3,"order_by":1,"parent_id":12724,"metadata":{},"date_created":"2026-06-26 03:50:43","date_modified":"2026-06-26 03:50:43","permalink":{"id":274069,"object_type":"structure","relational_id":14908,"identifier":"11","token":"64.2\/III\/11","url":"\/64.2\/III\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12724,"edition_id":1,"name":"Trusts","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12723,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":273811,"object_type":"structure","relational_id":12724,"identifier":"III","token":"64.2\/III","url":"\/64.2\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12723,"edition_id":1,"name":"Wills, Trusts, and Fiduciaries","identifier":"64.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":272781,"object_type":"structure","relational_id":12723,"identifier":"64.2","token":"64.2","url":"\/64.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84375,"structure_id":14908,"section_number":"64.2-1100","catch_line":"Definitions","url":"\/64.2-1100\/","token":"64.2\/III\/11\/64.2-1100","metadata":false},{"id":56908,"structure_id":14908,"section_number":"64.2-1101","catch_line":"Standard of conduct in managing and investing institutional fund","url":"\/64.2-1101\/","token":"64.2\/III\/11\/64.2-1101","metadata":false},{"id":65845,"structure_id":14908,"section_number":"64.2-1102","catch_line":"Appropriation for expenditure or accumulation of endowment fund; rules of construction","url":"\/64.2-1102\/","token":"64.2\/III\/11\/64.2-1102","metadata":false},{"id":87071,"structure_id":14908,"section_number":"64.2-1103","catch_line":"Delegation of management and investment functions","url":"\/64.2-1103\/","token":"64.2\/III\/11\/64.2-1103","metadata":false},{"id":70158,"structure_id":14908,"section_number":"64.2-1104","catch_line":"Release or modification of restrictions on management, investment, or purpose","url":"\/64.2-1104\/","token":"64.2\/III\/11\/64.2-1104","metadata":false},{"id":62888,"structure_id":14908,"section_number":"64.2-1105","catch_line":"Reviewing compliance","url":"\/64.2-1105\/","token":"64.2\/III\/11\/64.2-1105","metadata":false},{"id":59935,"structure_id":14908,"section_number":"64.2-1106","catch_line":"Application to existing institutional funds","url":"\/64.2-1106\/","token":"64.2\/III\/11\/64.2-1106","metadata":false},{"id":70621,"structure_id":14908,"section_number":"64.2-1107","catch_line":"Relation to Electronic Signatures in Global and National Commerce Act","url":"\/64.2-1107\/","token":"64.2\/III\/11\/64.2-1107","metadata":false},{"id":85902,"structure_id":14908,"section_number":"64.2-1108","catch_line":"Uniformity of application and construction","url":"\/64.2-1108\/","token":"64.2\/III\/11\/64.2-1108","metadata":false}],"previous_section":{"id":56908,"structure_id":14908,"section_number":"64.2-1101","catch_line":"Standard of conduct in managing and investing institutional fund","url":"\/64.2-1101\/","token":"64.2\/III\/11\/64.2-1101","metadata":false},"next_section":{"id":87071,"structure_id":14908,"section_number":"64.2-1103","catch_line":"Delegation of management and investment functions","url":"\/64.2-1103\/","token":"64.2\/III\/11\/64.2-1103","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1102\/","history_text":"

This law was first created in 1973. The record of its establishment is cataloged in chapter 167 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1973 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2008, chapter 184<\/a>; in 2012, chapter 614<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":274079,"object_type":"law","relational_id":65845,"identifier":"64.2-1102","token":"64.2\/III\/11\/64.2-1102","url":"\/64.2-1102\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1102\/","token":"64.2\/III\/11\/64.2-1102","dublin_core":{"Title":"Appropriation for expenditure or accumulation of endowment fund; rules of construction","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1102","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Subject to the intent<\/span> of a donor expressed in the gift instrument<\/span>, an institution may appropriate for expenditure or accumulate so much of an endowment fund<\/span> as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund<\/span> is established. Unless stated otherwise in the gift instrument<\/span>, the assets<\/span> in an endowment fund<\/span> are donor-restricted assets<\/span> 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<\/span> in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The duration and preservation of the endowment fund<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The purposes of the institution and the endowment fund<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> General economic conditions; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The possible effect of inflation or deflation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The expected total return from income and the appreciation of investments; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Other resources of the institution; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The investment policy of the institution. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> To limit the authority to appropriate for expenditure or accumulate under subsection A, a gift instrument<\/span> shall specifically state the limitation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Terms in a gift instrument<\/span> designating a gift as an endowment, or a direction or authorization in the gift instrument<\/span> to use only “income,” “interest,” “dividends,” or “rents, issues<\/span>, or profits,” or “to preserve the principal intact,” or words of similar import: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Create an endowment fund<\/span> of permanent duration unless other language in the gift instrument<\/span> limits the duration or purposes of the fund; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection A. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPROPRIATION FOR EXPENDITURE OR ACCUMULATION OF ENDOWMENT FUND; RULES OF\nCONSTRUCTION (\u00a7 64.2-1102)\n\nA. Subject to the intent of a donor expressed in the gift instrument, an\ninstitution may appropriate for expenditure or accumulate so much of an\nendowment fund as the institution determines is prudent for the uses, benefits,\npurposes, and duration for which the endowment fund is established. Unless\nstated otherwise in the gift instrument, the assets in an endowment fund are\ndonor-restricted assets until appropriated for expenditure by the institution.\nIn making a determination to appropriate or accumulate, the institution shall\nact in good faith, with the care that an ordinarily prudent person in a like\nposition would exercise under similar circumstances, and shall consider, if\nrelevant, the following factors:\n\n 1. The duration and preservation of the endowment fund;\n\n 2. The purposes of the institution and the endowment fund;\n\n 3. General economic conditions;\n\n 4. The possible effect of inflation or deflation;\n\n 5. The expected total return from income and the appreciation of investments;\n\n 6. Other resources of the institution; and\n\n 7. The investment policy of the institution.\n\nB. To limit the authority to appropriate for expenditure or accumulate under\nsubsection A, a gift instrument shall specifically state the limitation.\n\nC. Terms in a gift instrument designating a gift as an endowment, or a direction\nor authorization in the gift instrument to use only “income,”\n“interest,” “dividends,” or “rents, issues, or\nprofits,” or “to preserve the principal intact,” or words of\nsimilar import:\n\n 1. Create an endowment fund of permanent duration unless other language in the\n gift instrument limits the duration or purposes of the fund; and\n\n 2. Do not otherwise limit the authority to appropriate for expenditure or\n accumulate under subsection A.\n\nHISTORY: 1973, c. 167, \u00a7\u00a7 55-268.2, 55-268.3; 2008, c. 184, \u00a7 55-268.14;\n2012, c. 614.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}