New law enhances fund distributions
| From 1996 to June, 2008 | |
|---|---|
| as of June 30, 2008 | $28,088,740 |
| 2006 | $23,782,320 |
| 2001 | $8,040,023 |
| 1996 | $869,403 |
The state Legislature’s Texas Uniform Prudent Management of Institutional Funds Act took effect on Sept. 1, 2007. It describes the parameters within which charitable organizations like the UNT Foundation are to manage endowment funds, including the manner in which the proceeds from invested funds can be distributed to beneficiaries.
Simply stated, this act eliminates the concept of “historic dollar value,” and now allows for distributions from accounts where the market value has fallen below its historic dollar value, as long as those distributions are implemented in a prudent manner. The Foundation is now permitted to expend as much of an endowment fund as it deems prudent for the uses, benefits, purposes and duration for which the endowment fund was established.
Distribution of funds under these new guidelines will help provide additional stability, dependability and consistency in the amount of scholarship dollars and other funds distributed from endowments to UNT students, faculty and staff. Normal market fluctuations in the future will have a less significant short-term effect on funds available for distribution.
