Businesses: charitable organizations; rebuttable presumption of imprudence for certain expenditures from an endowment fund; provide for. Amends sec. 4 of 2009 PA 87 (MCL 451.924).
Key claim: Michigan HB6207 amends the 2009 Uniform Prudent Management of Institutional Funds Act to establish a rebuttable presumption of imprudence for certain expenditures from charitable endowment funds.
Abstract
(HB6207 · 103rd Legislature) Businesses: charitable organizations; rebuttable presumption of imprudence for certain expenditures from an endowment fund; provide for. Amends sec. 4 of 2009 PA 87 (MCL 451.924). Latest action (2026-07-14): Bill Electronically Reproduced 07/03/2026
Why this matters
Charitable nonprofits in Michigan manage endowment funds under the Uniform Prudent Management of Institutional Funds Act, which governs how much they can spend from donor-restricted funds each year. A rebuttable presumption of imprudence would shift the burden onto boards to justify certain expenditures, potentially tightening spending discipline at foundations, universities, and other endowed charities. The change is procedural but could affect payout practices and litigation risk for institutional fund managers.