Utah § 51-8-301 - Appropriation for expenditure or accumulation of endowment fund.

Full text of Utah Utah Code § 51-8-301 — Appropriation for expenditure or accumulation of endowment fund., with citation guidance and answers to common questions.

§ 51-8-301. Appropriation for expenditure or accumulation of endowment fund.

Effective 5/12/2015
51-8-301.  Appropriation for expenditure or accumulation of endowment fund.
(1)
(a) Subject to the intent of a donor expressed in a gift instrument and to Subsection (3), an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines to be prudent for the uses, benefits, purposes, and duration for which the endowment fund is established.
(b) Unless stated otherwise in a gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution.
(c) 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:
(i) the duration and preservation of the endowment fund;
(ii) the purposes of the institution and the endowment fund;
(iii) general economic conditions;
(iv) the possible effect of inflation or deflation;
(v) the expected total return from income and the appreciation of investments;
(vi) other resources of the institution; and
(vii) the investment policy of the institution.
(2) To limit the authority to appropriate for expenditure or accumulate under Subsection (1), a gift instrument must specifically state the limitation.
(3) Terms 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 similar words:
(a) create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and
(b) do not otherwise limit the authority to appropriate for expenditure or accumulate under Subsection (1).


Amended by Chapter 258, 2015 General Session

Source: official Utah text · Last verified 2026-08-27

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Frequently Asked Questions About Utah § 51-8-301

What does Utah Code § 51-8-301 cover?

Section 51-8-301 ("Appropriation for expenditure or accumulation of endowment fund.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 51-8-301?

A common citation format is "Utah Code § 51-8-301" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 51-8-301 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.

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