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This entry was published on 2014-09-22
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SECTION 551
Definitions
Not-for-Profit Corporation (NPC) CHAPTER 35, ARTICLE 5-A
§ 551. Definitions.

As used in this article:

(a) "Charitable purpose" means the relief of poverty, the advancement
of education or religion, the promotion of health, the promotion of a
governmental purpose, or any other purpose the achievement of which is
beneficial to the community including any purpose that is charitable
under the laws of the state of New York.

(a-1) "Donor" means the person who grants or transfers property to an
institution pursuant to a gift instrument, or a person designated in the
applicable gift instrument to act in the place of the donor, but does
not otherwise include the person's executors, heirs, successors,
assigns, transferees, or distributees.

(b) "Endowment fund" means an institutional fund or part thereof that,
under the terms of a gift instrument, is not wholly expendable by the
institution on a current basis. The term does not include assets that an
institution may designate as an endowment fund for its own use,
consistent with the terms of the applicable gift instrument.

(c) "Gift instrument" means a record or records, including an
institutional solicitation, under which property is granted to,
transferred to, or held by an institution as an institutional fund.

(d) "Institution" means: (1) a person, other than an individual,
organized and operated exclusively for charitable purposes; (2) a trust
that had both charitable and noncharitable interests, after all
noncharitable interests have terminated; or (3) any corporation
described in subparagraph five of paragraph (a) of section 102
(Definitions). Whenever any provision of this article imposes any
obligation on, or requires any action to be taken by, an institution,
such obligation is imposed on, and such action shall be authorized by,
the governing board of such institution.

(e) "Institutional fund" means a fund held by an institution. This
term shall not include: (1) program-related assets; (2) a fund held for
an institution by a trustee that is not an institution; or (3) a fund in
which a beneficiary that is not an institution has an interest, other
than an interest that could arise upon violation or failure of the
purposes of the fund.

(f) "Notice" means information given by an institution as required by
this article. An institution will be considered to have given notice if
notice is given personally in writing or sent to the recipient's last
known address on record with the institution, or, if no address is on
record with the institution, if the institution makes reasonable efforts
to attempt to find and notify the recipient. If the notice is mailed,
such notice is given when deposited in the United States mail, with
postage thereon prepaid. If the notice is delivered by electronic means,
such as via facsimile or email, such notice is given when the notice is
sent.

(g) "Person" means an individual, corporation, business trust, estate,
trust, partnership, limited liability company, association, joint
venture, or any other legal entity.

(h) "Program-related asset" means an asset held by an institution not
for investment under the terms of the gift instrument, but primarily to
accomplish a programmatic purpose of the institution.

(i) "Record" means information that is inscribed on a tangible medium
or that is stored in an electronic or other medium and is retrievable in
perceivable form.

(j) A donor is "available" if such donor (1) is living or, if the
donor is not a natural person, is in existence and conducting
activities; and (2) can be identified and located with reasonable
efforts.

(k) "External agent" means an independent investment advisor,
investment counsel or manager, bank, or trust company.