Florida Adopts FUPMIFA - a Law Governing Investments by Charitable Organizations

On June 17, 2011, Governor Scott signed into law the Florida Uniform Prudent Management of Institutional Funds Act (FUPMIFA). FUPMIFA imposes investment standards on Florida Charities. All Florida Charities should review their investments and investment policies to insure compliance with FUPMIFA. Reference herein to a Florida Charity is to a Florida not-for-profit corporation devoted exclusively to charitable activities.

History

Prior to FUPMIFA there was no Florida statutory law governing Florida not-for-profit corporation’s management of investments, with a single exception. Florida universities were subject to Section 1010.10 Florida Statutes which was a substantially modified version of the Uniform Prudent Management of Institutional Funds Act (UPMIFA). That statute is repealed by HB 599. Charitable trusts are and were subject to the Prudent Investor Act (PIA) Section 511.18 Florida Statutes and not FUPMIFA.

FUPMIFA is for the most part (98%+/-) taken from UPMIFA. UPMIFA is a model act written by the Uniform Law Commission. Some version of UPMIFA has been adopted by 48 states prior to Florida. Mississippi is the only state that has not adopted a version of UPMIFA.