{"data":{"id":"us-nj/n.j.-stat.-15-18-27","jurisdiction":"us-nj","citation":"N.J. Stat. § 15:18-27","heading":"Consideration of purpose of charitable institution, fund.","body":"3. a. Subject 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.\nb.\tIn addition to complying with the duty of loyalty imposed by law other than this act, 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.\nc.\tIn managing and investing an institutional fund, an institution:\n(1)\tmay 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)\tshall make a reasonable effort to verify facts relevant to the management and investment of the fund.\nd.\tAn institution may pool two or more institutional funds for purposes of management and investment.\ne.\tExcept as otherwise provided by a gift instrument, the following apply:\n(1)\tIn managing and investing an institutional fund, the following factors, if relevant, shall be considered:\n(a)\tgeneral economic conditions;\n(b)\tthe possible effect of inflation or deflation;\n(c)\tthe expected tax consequences, if any, of investment decisions or strategies;\n(d)\tthe role that each investment or course of action plays within the overall investment portfolio of the fund;\n(e)\tthe expected total return from income and the appreciation of investments;\n(f)\tother resources of the institution;\n(g)\tthe needs of the institution and the fund to make distributions and to preserve capital; and\n(h)\tan asset's special relationship or special value, if any, to the charitable purposes of the institution.\n(2)\tManagement and investment decisions about an individual asset shall be made 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, and shall not be made in isolation from these considerations.\n(3)\tExcept as otherwise provided by law other than this act, an institution may invest in any kind of property or type of investment consistent with this section.\n(4)\tAn 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)\tWithin 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, in order 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 act.\n(6)\tA person who 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.\nL.2009, c.64, s.3.","path":["TITLE 15 CORPORATIONS AND ASSOCIATIONS NOT FOR  PROFIT"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"6733561ed7c7eea31d3f09c2483c963bb38b174b277923749bf35bc718992265","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-15-18-26","next":"us-nj/n.j.-stat.-15-18-28"},"notice":"GroundRules: Original legal text. Not legal advice."}