Restricted purpose gifts potentially bear upon that portion of the university's endowment that can be used toward undergraduate financial aid and other tuition relief. In these remarks, I describe what a restricted gift is, the requirement under state common law that such restrictions obtain in perpetuity, the grounds for relief under the common law, and the grounds for relief and other relevant provisions of UPMIFA. The provisions of UPMIFA that are applicable to restricted gifts were drafted against the background of the common law doctrine and under UPMIFA common law relief is still available.
Goodwin, Iris J., Congressional Roundtable on College Endowments - Restricted Gifts Testimony (September 8, 2008). University of Tennessee Legal Studies Research Paper No. 86, Available at SSRN: https://ssrn.com/abstract=1268999 or http://dx.doi.org/10.2139/ssrn.1268999