MS SB2361

Establishes the Uniform Prudent Management of Institutional Funds Act (UPMIFA) to govern how charitable institutions manage and invest donated funds, replacing the existing Uniform Management of Institutional Funds Act (Sections 79-11-601 through 79-11-617)

Requires institutions managing charitable funds to act in good faith with the care of an ordinarily prudent person, considering factors such as general economic conditions, inflation effects, tax consequences, and the charitable purposes of the fund

Allows institutions to appropriate expenditures from endowment funds as deemed prudent, rather than being limited to spending only "income" or "interest," unless the gift instrument specifically restricts such appropriation

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

Authorizes chancery courts to modify restrictions on fund management or purpose when original terms become impracticable, wasteful, or impossible to achieve, with modifications to align with donor's probable intention