{"data":{"id":"us-ky/krs-273.610","jurisdiction":"us-ky","citation":"KRS 273.610","heading":"Appropriation for expenditure or accumulation of endowment -- Rules of","body":"construction.\n(1) Subject to the intent of a donor expressed in the gift instrument, an institution may\nappropriate for expenditure or accumulate so much of an endowment fund as th e\ninstitution determines is prudent for the uses, benefits, purposes, and duration for\nwhich the endowment fund is established. Unless stated otherwise in the gift\ninstrument, the assets in an endowment fund are donor -restricted assets until\nappropriated f or expenditure by the institution. In making a determination to\nappropriate or accumulate, the institution shall act in good faith, with the care that\nan ordinarily prudent person in a like position would exercise under similar\ncircumstances, and shall consider, if relevant, the following factors:\n(a) The duration and preservation of the endowment fund;\n(b) The purposes of the institution and the endowment fund;\n(c) General economic conditions;\n(d) The possible effect of inflation or deflation;\n(e) The expected total return from income and the appreciation of investments;\n(f) Other resources of the institution; and\n(g) The investment policy of the institution.\n(2) To limit the authority to appropriate for expenditure or accumulate under subsection\n(1) of this section, a gift instrument must specifically state the limitation.\n(3) Terms in a gift instrument designating a gift as an endowment, or a direction or\nauthorization in the gift instrument to use only \"income,\" \"interest,\" \"dividends,\" or\n\"rents, issues, or profits,\" or \"to preserve the principal intact,\" or words of similar\nimport:\n(a) Create an endowment fund of permanent duration unless other language in the\ngift instrument limits the duration or purpose of the fund; and\n(b) Do not otherwise limit the authority to appropriate for expenditure or\naccumulate under subsection (1) of this section.","path":["KRS Chapter 273"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=13770","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:25Z","sha256":"08967fdc99e8e80ebcdfdbdbf328c7fead7cdde0e80ab2f5294006420400157f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-273.605","next":"us-ky/krs-273.615"},"notice":"GroundRules: Original legal text. Not legal advice."}