ID S1314

Amends Idaho Code Section 33-5004 regarding appropriation and accumulation of endowment funds by institutions.

Institutions may appropriate or accumulate endowment funds as prudently determined, acting in good faith with ordinary care and considering factors including fund duration, institutional purposes, economic conditions, inflation/deflation effects, investment returns, institutional resources, and investment policy.

Gift instrument limitations on appropriation or accumulation authority must be specifically stated to be enforceable.

Terms designating gifts as endowments or directing use of only "income," "interest," "dividends," or similar language create permanent duration endowment funds unless the gift instrument limits the duration or purpose.

Language restricting types or classes of investment returns does not further limit the institution's authority to appropriate or accumulate funds beyond what is specified in the gift instrument.