Pursuant to the newly adopted Uniform Prudent Management of Institutional Funds Act ("UPMIFA"), M.G.L. ch. 180A, § 5(d), the Supreme Judicial Court issued S.J.C. Rule 1:23. This Rule, which is effective as of January 1, 2011, permits an institution seeking to modify certain restrictions of an institutional fund that has been in existence for twenty (20) years or longer and has a total value of seventy-five thousand dollars ($75,000) or less as of the end of its last fiscal year to do so without petitioning the court for relief if the institution obtains the consent of the Attorney General. In such an event, the institution may apply to the Attorney General for consent to either:
- Modify a restriction contained in a gift instrument on the management, investment, or duration of the institutional fund (administrative equitable deviation); or
- Modify the purpose of the institutional fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument if a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund has become unlawful, impracticable, impossible to achieve or wasteful (administrative cy pres).
In response to S.J.C. Rule 1:23, the Division has implemented a procedure for reviewing requests to modify institutional funds that have been in existence for at least twenty (20) years and have a total value of seventy-five thousand ($75,000) dollars or less.
Please see the links to the new Form PC-IF and the Instructions to the Form PC-IF provided below.
- Instructions to Form PC-IF
- Form PC-IF
- S.J.C. Rule 1:23
- M.G.L. ch. 180A §§ 1-11
- AGO Position on FASB Statement of Financial Accounting Standards No. 117-1, Paragraph 8, and Related M.G.L. ch. 180A Issues (PDF) (Issued April 2011)
- Frequently Asked Questions on Modification of Institutional Funds and M.G.L. Ch. 180A § 5(d) (PDF)