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).

This bill amends Michigan's Uniform Prudent Management of Institutional Funds Act to clarify how charitable organizations can spend money from their endowment funds. It establishes a rebuttable presumption of imprudence if an organization spends more than 8% of an endowment's average fair market value over a three-year period. The legislation also clarifies that certain standard terms in donor agreements do not automatically restrict spending to just the income generated by the fund. These changes aim to provide clearer guidance for institutions managing donor-restricted assets while maintaining the ability to act prudently based on specific donor instructions.