{"data":{"id":"us-dc/d.c.-code-44-1632","jurisdiction":"us-dc","citation":"D.C. Code § 44-1632","heading":"Standard of conduct in managing and investing institutional fund.","body":"(a)\nSubject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.\n\n(b)\nIn addition to complying with the duty of loyalty imposed by law other than this chapter, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.\n\n(c)\nIn managing and investing an institutional fund, an institution:\n(1)\nMay incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and\n(2)\nShall make a reasonable effort to verify facts relevant to the management and investment of the fund.\n\n(d)\nAn institution may pool 2 or more institutional funds for purposes of management and investment.\n\n(e)\nExcept as otherwise provided by a gift instrument, the following rules shall apply:\n(1)\nIn managing and investing an institutional fund, the following factors, if relevant, shall be considered:\n(A)\nGeneral economic conditions;\n(B)\nThe possible effect of inflation or deflation;\n(C)\nThe expected tax consequences, if any, of investment decisions or strategies;\n(D)\nThe role that each investment or course of action plays within the overall investment portfolio of the fund;\n(E)\nThe expected total return from income and the appreciation of investments;\n(F)\nOther resources of the institution;\n(G)\nThe needs of the institution and the fund to make distributions and to preserve capital; and\n(H)\nAn asset’s special relationship or special value, if any, to the charitable purposes of the institution.\n(2)\nManagement and investment decisions about an individual asset shall be made not in isolation but rather in the context of the institutional fund’s portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.\n(3)\nExcept as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with this section.\n(4)\nAn institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.\n(5)\nWithin a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this chapter.\n(6)\nA person that has special skills or expertise, or is selected in reliance upon the person’s representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.","path":["Title 44. Charitable and Curative Institutions.","Chapter 16A. Uniform Prudent Management of Institutional Funds."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/44-1632","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"cd222a2ef486a637c6c360eb9caccaef3d5ab42f7f24c7db2d3bce0b1030add5","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-44-1631","next":"us-dc/d.c.-code-44-1633"},"notice":"GroundRules: Original legal text. Not legal advice."}