MS HB1104

Creates the Uniform Prudent Management of Institutional Funds Act to govern how charitable institutions manage and invest endowment funds and other institutional funds held for charitable purposes

Establishes a prudent investor standard requiring fund managers to act in good faith with the care an ordinarily prudent person would exercise, considering factors such as general economic conditions, inflation, tax consequences, and expected returns

Allows institutions to delegate investment management to external agents while maintaining oversight, with protection from liability for agent decisions absent gross negligence or misconduct

Permits institutions to appropriate endowment fund assets for expenditure as deemed prudent, rather than being limited to spending only "income" or "interest" as traditionally interpreted

Provides a court process to modify donor restrictions on fund management or purpose when original restrictions become impracticable, wasteful, or impossible to achieve

Repeals the prior Uniform Management of Institutional Funds Act (Sections 79-11-601 through 79-11-617) and takes effect July 1, 2012