{"data":{"id":"us-nc/n.c.-gen.-stat.-36e-4","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 36E-4","heading":"Appropriation for expenditure or accumulation of endowment fund; rules of construction.","body":"(a)\tSubject to the intent of a donor expressed in the gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:\n(1)\tThe duration and preservation of the endowment fund;\n(2)\tThe purposes of the institution and the endowment fund;\n(3)\tGeneral economic conditions;\n(4)\tThe possible effect of inflation or deflation;\n(5)\tThe expected total return from income and the appreciation of investments;\n(6)\tOther resources of the institution; and\n(7)\tThe investment policy of the institution.\n(b)\tTo limit the authority to appropriate for expenditure or accumulate under subsection (a) of this section, a gift instrument must specifically state the limitation.\n(c)\tTerms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only \"income,\" \"interest,\" \"dividends,\" or \"rents, issues, or profits,\" or \"to preserve the principal intact,\" or words of similar import:\n(1)\tCreate an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and\n(2)\tDo not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a) of this section. (1985, c. 98, s. 1; 2009-8, s. 2.)","path":["Chapter 36E. Uniform Prudent Management of Institutional Funds Act."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_36E/GS_36E-4.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:01:27Z","sha256":"7f4606c9ebc05f90869b5f98bffe6234f75c7af87c8a3d20a9ea23ca0c14639a","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-36e-3","next":"us-nc/n.c.-gen.-stat.-36e-5"},"notice":"GroundRules: Original legal text. Not legal advice."}