| name | endowment-policy-statement |
| title | Endowment Policy Statement |
| description | Drafts a Board-ready Endowment Fund Investment and Spending Policy Statement for 501(c)(3) nonprofits, covering UPMIFA compliance, asset allocation, spending methodology, underwater fund treatment, and fiduciary roles. Use when creating or updating endowment governance policies, institutional fund stewardship documents, or board-adoption investment and spending guidelines. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/endowment-policy-statement |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | nonprofit |
| language | en |
Endowment Policy Statement
Produces a governance instrument for 501(c)(3) endowment management compliant with UPMIFA or applicable state law.
Prerequisites
Gather before drafting. Search uploaded documents (bylaws, gift agreements, financials, board resolutions) to pre-populate.
- Organization — legal name, state of incorporation, fiscal year end, governing statute (UPMIFA or other)
- Endowment structure — total AUM, fund categories (true/term/quasi), pooled vs. separate, donor-imposed restrictions
- Investment profile — advisors/managers, risk tolerance, ESG/mission restrictions, prohibited investments, alternatives experience
- Governance — Investment Committee composition and cadence, staff roles, delegation authority
- Spending — target rate (%), averaging period (12 or 20 quarters), underwater philosophy, budget dependence
- Special circumstances — unusual donor restrictions, pending gifts, legal matters, prior policy conflicts
Quick Start
- Collect prerequisites above
- Confirm governing statute — verify state UPMIFA adoption before drafting
- Draft sections in order below, replacing all bracketed placeholders with org-specific data
- Present for legal counsel review before Board adoption
Document Sections
| # | Section | Key Content |
|---|
| 1 | Title & Recitals | Policy name, adoption date, legal name, effective date, supersession clause |
| 2 | Purpose & Scope | Fiduciary framework, UPMIFA citation, fund types, intergenerational equity |
| 3 | Investment Objectives | Total return mandate, target real return (% above CPI, rolling 10-yr), permissible volatility |
| 4 | Asset Allocation | Target allocations + allowable ranges per asset class |
| 5 | Rebalancing | Trigger thresholds, method (cashflow vs. trades), approval authority |
| 6 | Spending Policy | Formula, methodology, timing, floor/ceiling treatment |
| 7 | Underwater Endowments | Monitoring triggers, spending suspension/reduction, restoration plan, donor notification |
| 8 | Roles & Responsibilities |
