Its provisions can be found in NPCL sections 512, 513, 514, and 522, and in the definitions of "endowment fund," "gift instrument," "governing board," "historic dollar value," and "institutional fund" in NPCL sections 102, , respectively.
The NPCL was enacted in 1969, effective from 1971, replacing the Membership Corporations Law.
Proposed NPCL section 551(a)'s definition of "charitable purpose" seems to have been drafted without regard to the classic definitions according to the Internal Revenue Code and the NPCL's Type B corporations.
Proposed NPCL section 552(e)(4) contains a special circumstances exception to the requirement for investment diversification.
Proposed NPCL section 552(e)(6) should require an institution to use due diligence to determine that a person who represents that he has "special skills or expertise .
While proposed NPCL section 553(a), in its lead, pays lip service to a donor's intent to establish an endowment, and proposed section 553(b) also addresses such intent, proposed section 553(c) vitiates a donor's intent to create a true endowment--unless the donor spends lots of money on lawyers.