| 1. |
Definitions |
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*Endowments |
A true endowment refers to amounts that have been contributed with donor-specified restrictions that the principal be invested in perpetuity; income from those investments may also be restricted by donors. |
A term endowment is similar to a true endowment, except that at some future time or upon the occurrence of a specified future event, the funds originally contributed become available for unrestricted or purpose-restricted use by the entity. (For example, if the donor allows principal invasion.) |
A quasi-endowment refers to funds designated by The Board of Trustees of the University of Illinois or the University of Illinois Foundation Board of Directors, or designee(s), to be retained and invested for specified purposes for a long but unspecified period (minimum of five years.) |
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*Book Value |
Also referred to as "fund balance" or "principal"; represents the funds originally gifted by the donor. May also include some permanently reinvested income. |
Also referred to as "fund balance" or "principal"; represents the funds originally gifted by the donor. May also include some permanently reinvested income. |
Also referred to as "fund balance" or "principal"; represents the original funds transferred by the department. May also include reinvested income. |
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* Market Value |
Also referred to as "net asset value"; represents the value of the individual fund's investment in the endowment pool at a stated date. |
Also referred to as "net asset value"; represents the value of the individual fund's investment in the endowment pool at a stated date. |
Also referred to as "net asset value"; represents the value of the individual fund's investment in the endowment pool at a stated date. |
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* University Endowment |
Gifts established by a bequest, trust or estate distribution to the University of Illinois. These assets must be accepted by the University and endowed and accounted for separate from the Foundation endowment. |
| 2. |
Source of Funds: |
Donor Gift(s) |
Donor Gift(s) |
Typically includes reinvested endowment income and unrestricted or restricted current gifts. May also include estate distributions for which an endowment is not prohibited and the unit deems is appropriate. See also 11.11 Establishment of Quasi-Endowments for other allowable funds. Note: it is not advised to invest construction funds into the endowment due to market volatility; see the current funds policy for construction project interest income exceptions. |
| 3. |
Minimums (determined by principal balance): |
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* To Establish a Fund |
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Foundation Endowment |
Requires a minimum $25,000 gift from a donor, intervivos or testamentary. Estate language must state: "….to the University of Illinois Foundation…". |
Requires a minimum $25,000 gift from a donor, intervivos or testamentary. Estate language must state: "….to the University of Illinois Foundation…"; if there is an expectation that any principal may be utilized within five years, the investment risks must be fully discussed with the donor. |
Requires a minimum $25,000 transfer from College/Department gift funds (or other allowable additions per 11.11 Establishment of Quasi-Endowments with the anticipation that corpus will not be needed for less than five years; if there is an expectation that any principal may be utilized within five years, the investment risks must be fully understood by the department. Any request to establish a quasi-endowment must be sent to and approved by Gift Administration and/or the UIF Treasurer/UI Comptroller as necessary. To return funds from Banner to the Foundation for reinvesting income, the form found in 11.8 Return of Gift Funds to the University of Illinois Foundation must also be completed. |
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University Endowment |
Estate distribution from a donor naming the University of Illinois; minimum should be $25,000. |
Estate distribution from a donor naming the University of Illinois; minimum should be $25,000. |
See 11.11 Establishment of Quasi-Endowments. |
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*Pledges/Installment Payments |
Allowable, but requires a formal plan (i.e. pledge agreement) with the donor; if the fund does not reach the minimum $25,000 requirement within three to five years, it may be converted to current use. Exceptions will include long term pledge commitments exceeding five years and specific donor agreements stating otherwise. |
Allowable, but requires a formal plan (i.e. pledge agreement) with the donor; if the fund does not reach the minimum $25,000 requirement within three to five years, it may be converted to current use. Exceptions will include long term pledge commitments exceeding five years and specific donor agreements stating otherwise. |
Not allowed |
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* Named Funds (minimum gift amount required) |
Named Endowed Funds |
$25,000 |
Named Endowed Funds |
$25,000 |
Named Endowed Funds |
$25,000 |
| Named Scholarship |
$25,000 |
Named Scholarship |
$25,000 |
Named Scholarship |
$25,000 |
| Named Graduate Fellowship |
$250,000 |
Named Graduate Fellowship |
$250,000 |
Named Graduate Fellowship |
$250,000 |
| Named Professorship |
$500,000 |
Named Professorship |
$500,000 |
Named Professorship |
$500,000 |
| Named Chair |
$2,000,000 |
Named Chair |
$2,000,000 |
Named Chair |
$2,000,000 |
| *Visit UIF Online for more details and other named endowment levels. |
| * Activation |
No permanent endowment will be activated until a fully executed fund agreement is in place and one of the following conditions is met: (a) The Foundation has the entire amount of the endowment in hand and available for support for the purpose designated in the gift agreement; or (b) the Foundation has at least half of the total funding in hand and a firm commitment for the remaining half within three years; or (c) the entire amount of the endowment has been placed in an irrevocable trust to be managed in accordance with the gift agreement and the donor, dean or director has indicated his or her willingness to fund the endowed activities prior to receiving the actual endowment income. Until the fund balance reaches the minimum funding level (described in "Named Funds" above), the spending allowance will be reinvested into principal (fund balance.) |
No permanent endowment will be activated until a fully executed fund agreement is in place and one of the following conditions is met: (a) The Foundation has the entire amount of the endowment in hand and available for support for the purpose designated in the gift agreement; or (b) the Foundation has at least half of the total funding in hand and a firm commitment for the remaining half within three years; or (c) the entire amount of the endowment has been placed in an irrevocable trust to be managed in accordance with the gift agreement and the donor, dean or director has indicated his or her willingness to fund the endowed activities prior to receiving the actual endowment income. Until the fund balance reaches the minimum funding level (described in "Named Funds" above), the spending allowance will be reinvested into principal (fund balance.) |
No quasi endowment will be activated until a fully executed statement of understanding with the unit is in place. |
| * Deferred Commitments |
In the case where a donor commits to providing a deferred gift, the minimum gift levels in place at the time the fund agreement is signed will be used to establish the named endowed fund. |
In the case where a donor commits to providing a deferred gift, the minimum gift levels in place at the time the fund agreement is signed will be used to establish the named endowed fund. |
Not applicable |
| 4. |
Fund Approval |
The creation of a new endowment must be reviewed at the college/unit and campus levels to ensure the use can be administered; also by UIF or UI as appropriate. |
The creation of a new endowment must be reviewed at the college/unit and campus levels to ensure the use can be administered; also by UIF or UI as appropriate. |
The creation of a new endowment must be reviewed at the college/unit and campus levels to ensure the use can be administered; also by UIF or UI as appropriate. |
| 5. |
Governing Documents: |
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*Approved Types |
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Foundation Endowment |
Fund agreement, will and/or trust document executed with the donor. If additional documentation is needed to supplement will or trust language, a statement of understanding may be prepared as appropriate. |
Fund agreement, will and/or trust document executed with the donor. If additional documentation is needed to supplement will or trust language, a statement of understanding may be prepared as appropriate. |
Statement of understanding with department |
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University Endowment |
Fund agreement, will and/or trust document executed with the donor. If additional documentation is needed to supplement will or trust language, a statement of understanding may be prepared as appropriate. |
Fund agreement, will and/or trust document executed with the donor. If additional documentation is needed to supplement will or trust language, a statement of understanding may be prepared as appropriate. |
Fund agreement, will and/or trust document executed with the donor. If additional documentation is needed to supplement will or trust language, a statement of understanding may be prepared as appropriate. |
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* Document Preparation |
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Foundation Endowment |
Drafts may be prepared by a unit, however, the draft may not be shared with a donor until reviewed by UIF and the college/unit; final documents must be prepared by UIF. |
Drafts may be prepared by a unit, however, the draft may not be shared with a donor until reviewed by UIF and the college/unit; final documents must be prepared by UIF. |
Draft must be reviewed by UIF and the college/unit; final document must be prepared by UIF. |
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University Endowment |
In addition to the bequest language, if it is determined that a statement of understanding is necessary to further clarify the donor's intent, the draft may be prepared by the unit using the standard UIF fund agreement language; final document will be prepared by the University Office of Accounting and Financial Reporting. |
In addition to the bequest language, if it is determined that a statement of understanding is necessary to further clarify the donor's intent, the draft may be prepared by the unit using the standard UIF fund agreement language; final document will be prepared by the University Office of Accounting and Financial Reporting. |
In addition to the bequest language, if it is determined that a statement of understanding is necessary to further clarify the donor's intent, the draft may be prepared by the unit using the standard UIF fund agreement language; final document will be prepared by the University Office of Accounting and Financial Reporting. |
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* Review and Approval Process |
Must be reviewed and agreed to by the donor and UIF; Department Head and/or Dean must review and approve content; University officials must review as appropriate. |
Must be reviewed and agreed to by the donor and UIF; Department Head and/or Dean must review and approve content; University officials must review as appropriate. |
UIF and Department Head and/or Dean must review and approve content; University officials must review as appropriate. |
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* Signatories |
Donor, Department Head, Dean and/or other appropriate University officials in addition to the Foundation President and Foundation Secretary |
Donor, Department Head, Dean and/or other appropriate University officials in addition to the Foundation President and Foundation Secretary |
Department Head, Dean and/or other appropriate University officials in addition to the Foundation President and Foundation Secretary |
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* Donor Biographical Information |
Biographical information may be added to the fund agreement. |
Biographical information may be added to the fund agreement. |
Biographical information may be added to the fund agreement. |
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* Required Boilerplate Language |
Each fund agreement must contain the required boilerplate language regarding reasonable fees and the alternate application of the net income. |
Each fund agreement must contain the required boilerplate language regarding reasonable fees and the alternate application of the net income. |
Each fund agreement must contain the required boilerplate language regarding reasonable fees and the alternate application of the net income. |
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* "Purpose of Fund" Section |
Purpose section must be flexible enough to be useful in perpetuity; alternate application clause must be utilized. |
Purpose section must be flexible enough to be useful in perpetuity; alternate application clause must be utilized. |
Purpose section should describe the intent of the Department for expenditure of the endowment income, in accordance with the original donor intent governing the funds being transferred. |
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*Alternate Application |
If at such a time gifts can no longer be administered as originally intended and it is not practicable to seek approval from the donor, an alternate application may be invoked. To invoke the Future Circumstances clause, (a) the Unit/College must write a letter of justification including the current guidelines for use, why the intent cannot be adhered to, and a suggested alternate use as close as possible to the donor's original intent; (b) the proposed alternate use must then be submitted for review by the appropriate campus Chief Advancement Officer; (c) If deemed appropriate, the campus Chief Advancement Officer will seek approval from the Vice Chancellor for Academic Affairs/Provost and the Chancellor.
If granted, the campus Chief Advancement Officer will forward the approved request to the Foundation Chief Operating Officer who, where appropriate, will confer with the Foundation Office of General Counsel to provide guidance as to whether it would be prudent to pursue legal action to alter the gift restrictions; (d) if deemed acceptable, the Chief Operating Officer will seek approval from the President of the Foundation for final approval by the Foundation Board of Directors or designee. If a governing document does not contain the Future Circumstances clause, a Cy Pres proceeding may be required upon legal review.
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If at such a time gifts can no longer be administered as originally intended and it is not practicable to seek approval from the donor, an alternate application may be invoked. To invoke the Future Circumstances clause, (a) the Unit/College must write a letter of justification including the current guidelines for use, why the intent cannot be adhered to, and a suggested alternate use as close as possible to the donor's original intent; (b) the proposed alternate use must then be submitted for review by the appropriate campus Chief Advancement Officer; (c) If deemed appropriate, the campus Chief Advancement Officer will seek approval from the Vice Chancellor for Academic Affairs/Provost and the Chancellor.p>
If granted, the campus Chief Advancement Officer will forward the approved request to the Foundation Chief Operating Officer who, where appropriate, will confer with the Foundation Office of General Counsel to provide guidance as to whether it would be prudent to pursue legal action to alter the gift restrictions; (d) if deemed acceptable, the Chief Operating Officer will seek approval from the President of the Foundation for final approval by the Foundation Board of Directors or designee. If a governing document does not contain the Future Circumstances clause, a Cy Pres proceeding may be required upon legal review.
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If the use cannot be adhered to as originally stated in the statement of understanding with the department, an amendment or revision should be drafted, in accordance with the original requirements for use of the funds. |
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* Named Programs/Units (includes Centers, Colleges, Institutes, and Buildings) |
To name a program, unit or facility, discussions must be held among the Chancellor, Associate Chancellor for Development, Provost/VC for Academic Affairs and the dean or director before any commitment to the donor is made. (See also The General Rules Concerning University Organization and Procedures, Article 5, Section 4.) |
To name a program, unit or facility, discussions must be held among the Chancellor, Associate Chancellor for Development, Provost/VC for Academic Affairs and the dean or director before any commitment to the donor is made. (See also The General Rules Concerning University Organization and Procedures, Article 5, Section 4.) |
Not Applicable |
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* Naming Endowments |
May be named in honor or in memory of individual(s) as determined by the donor, in consultation with the proper unit/university officials. |
May be named in honor or in memory of individual(s) as determined by the donor, in consultation with the proper unit/university officials. |
May be named in honor or in memory of individual(s) as determined by the appropriate unit/department head. |
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* Amended Fund Agreements or Statements of Understanding |
Any changes to the fund purpose or designation should initiate an amendment to the original governing document; refer to document preparation and approval process above. |
Any changes to the fund purpose or designation should initiate an amendment to the original governing document; refer to document preparation and approval process above. |
Any changes to the fund purpose or designation should initiate an amendment to the original governing document; refer to document preparation and approval process above. |
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* Bequest language |
If a donor wishes to establish an endowment by bequest, the donor may contact the Foundation Office of Trust Relations for sample bequest language. It is important that the Foundation and appropriate University offices review a proposed bequest during the donor's lifetime to ensure that there are no legal or administrative obstacles to prevent the institution from carrying out the donor's intent. |
If a donor wishes to establish an endowment by bequest, the donor may contact the Foundation Office of Trust Relations for sample bequest language. It is important that the Foundation and appropriate University offices review a proposed bequest during the donor's lifetime to ensure that there are no legal or administrative obstacles to prevent the institution from carrying out the donor's intent. |
Not Applicable |
| 6. |
Spending Policies: |
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* Budget income calculation (spending allowance) |
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Foundation Endowments |
The current budgeted spending is defined as 4.00% of a six-year moving average market value of the endowment pool. |
The current budgeted spending is defined as 4.00% of a six-year moving average market value of the endowment pool. |
The current budgeted spending is defined as 4.00% of a six-year moving average market value of the endowment pool. |
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University Endowments |
The current budgeted spending is defined as 4.00% of a six-year moving average market value of the endowment pool. |
The current budgeted spending is defined as 4.00% of a six-year moving average market value of the endowment pool. |
The current budgeted spending is defined as 4.00% of a six-year moving average market value of the endowment pool. |
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* Mid-year gifts |
Gifts received during the fiscal year earn endowment income, prorated for the remaining months in the fiscal year. |
Gifts received during the fiscal year earn endowment income, prorated for the remaining months in the fiscal year. |
Additions received during the fiscal year earn endowment income, prorated for the remaining months in the fiscal year. |
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* Administrative Fee |
The current administrative fee is 1.35% of a six-year moving average of the market value of the pool assessed monthly (1/12th) to fund development operations. The fee is considered part of the spending formula. |
The current administrative fee is 1.35% of a six-year moving average of the market value of the pool assessed monthly (1/12th) to fund development operations. The fee is considered part of the spending formula. |
The current administrative fee is 1.35% of six-year moving average of the market value of the pool assessed monthly (1/12th) to fund development operations. The fee is considered part of the spending formula. |
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* Gift fees assessed by units |
Not allowed |
Not allowed |
Not allowed |
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* Budget transfer |
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Foundation Endowments |
The amount for the entire fiscal year is budgeted by August on an assumption that the funds will remain invested from 7/1 to 6/30; the annual budget entry is posted to the University spending account by August; the actual cash transfer occurs monthly from the Foundation to the University. |
The amount for the entire fiscal year is budgeted by August on an assumption that the funds will remain invested from 7/1 to 6/30; the annual budget entry is posted to the University spending account by August; the actual cash transfer occurs monthly from the Foundation to the University. |
The amount for the entire fiscal year is budgeted by August on an assumption that the funds will remain invested from 7/1 to 6/30; the annual budget entry is posted to the University spending fund in August; the actual cash transfer occurs monthly from the Foundation to the University. |
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University Endowments |
The amount for the entire fiscal year is budgeted by August on an assumption that the funds will remain invested from 7/1 to 6/30; the annual budget entry is posted to the University spending fund by August. |
The amount for the entire fiscal year is budgeted by August on an assumption that the funds will remain invested from 7/1 to 6/30; the annual budget entry is posted to the University spending fund by August. |
The amount for the entire fiscal year is budgeted by August on an assumption that the funds will remain invested from 7/1 to 6/30; the annual budget entry is posted to the University spending fund in August. |
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* Responsibility |
The CEO of the unit (Deans, directors, department or unit heads) are responsible for administering and expending endowment income; spending must be consistent with donor intent as provided by the guidelines in the approved governing document and/or fund agreement. The University and Foundation have a fiduciary duty to the donor to insure donor intent compliance. |
The CEO of the unit (Deans, directors, department or unit heads) are responsible for administering and expending endowment income; spending must be consistent with donor intent as provided by the guidelines in the approved governing document and/or fund agreement. The University and Foundation have a fiduciary duty to the donor to insure donor intent compliance. |
The CEO of the unit (Deans, directors, department or unit heads) are responsible for administering and expending endowment income; spending must be consistent with donor intent as provided by the guidelines in the approved governing document and/or fund agreement. The University and Foundation have a fiduciary duty to the donor to insure donor intent compliance. |
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* Withdrawals |
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Foundation Endowments |
Not allowed |
If donor's fund agreement permits, the unit may request an annual withdrawal of principal by May 15th to be processed in June each year; where there is a reasonable expectation that the principal will be fully expended within one year, the investment will be converted to current funds. |
The unit may request an annual withdrawal of principal by May 15th to be processed in June each year; where there is a reasonable expectation that the principal will be fully expended within one year, the investment will be converted to current funds unless the quasi-endowment is a result of reinvested income. If the quasi-endowment is created from reinvested income, withdrawals are allowed, but the endowment income will reinvest if the principal balance is less than $25,000. |
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University Endowments |
Not allowed |
If donor's fund agreement permits, the unit may request withdrawals of principal at any time during the year; where there is a reasonable expectation that the principal will be fully expended within one year, the investment will be converted to current funds. |
The unit may request withdrawals of principal at any time during the year; where there is a reasonable expectation that the principal will be fully expended within one year, the investment will be converted to current funds. |
| 7. |
Investment Policy |
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* Who establishes policy? |
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Foundation Endowments |
UIF Board of Directors annually approves spending policy, upon recommendation by the UIF Investment Policy Committee and the University. |
UIF Board of Directors annually approves spending policy, upon recommendation by the UIF Investment Policy Committee and the University. |
UIF Board of Directors annually approves spending policy, upon recommendation by the UIF Investment Policy Committee and the University. |
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University Endowments |
The University President annually determines spending policy, upon recommendation by the University CFO and University Vice President for Academic Affairs. |
The University President annually determines spending policy, upon recommendation by the University CFO and University Vice President for Academic Affairs. |
The University President annually determines spending policy, upon recommendation by the University CFO and University Vice President for Academic Affairs. |
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* Total return concept |
The focus of the endowment pool investment program is to preserve the real value or purchasing power of assets and the annual support provided by these assets over an infinite time horizon; the total return concept allows spending from earned income, realized gains and appreciation, in accordance with the Uniform Management of Institutional Funds Act. |
The focus of the endowment pool investment program is to preserve the real value or purchasing power of assets and the annual support provided by these assets over an infinite time horizon; the total return concept allows spending from earned income, realized gains and appreciation, in accordance with the Uniform Management of Institutional Funds Act. |
The focus of the endowment pool investment program is to preserve the real value or purchasing power of assets and the annual support provided by these assets over an infinite time horizon; the total return concept allows spending from earned income, realized gains and appreciation, in accordance with the Uniform Management of Institutional Funds Act. |
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* Endowment accounting |
Pooled and unitized; each endowment fund maintains its individual identity and is administered and accounted for according to the purpose specified by the donor. |
Pooled and unitized; each endowment fund maintains its individual identity and is administered and accounted for according to the purpose specified by the donor. |
Pooled and unitized; each endowment fund maintains its individual identity and is administered and accounted for according to the purpose specified in the statement of understanding. |
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* Income Distribution |
If investment return is not sufficient to cover endowment fund payout and fees, the amounts will be taken from accumulated gains; if investment return exceeds the payout and fees, the excess remains in the pool and increases the market value of each fund. |
If investment return is not sufficient to cover endowment fund payout and fees, the amounts will be taken from accumulated gains; if investment return exceeds the payout and fees, the excess remains in the pool and increases the market value of each fund. |
If investment return is not sufficient to cover endowment fund payout and fees, the amounts will be taken from accumulated gains; if investment return exceeds the payout and fees, the excess remains in the pool and increases the market value of each fund. |
| 8. |
Stewardship & Donor Intent: |
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* Acknowledgments |
All gifts are acknowledged and receipted by the Foundation as part of the gift processing function; benefiting units are also required to communicate with the donor to acknowledge the gift in a timely fashion, in accordance with internal unit policy. |
All gifts are acknowledged and receipted by the Foundation as part of the gift processing function; benefiting units are also required to communicate with the donor to acknowledge the gift in a timely fashion, in accordance with internal unit policy. |
No gift acknowledgment from UIF is made; the transfer from the unit is posted as a non-gift to the endowment; thank you note should be sent in the appropriate circumstances (i.e. there is a primary donor/contact). |
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* Proper and Timely Spending |
Endowment income must be spent in accordance with the donor's intentions; excessive accumulations of unspent income (for example, three times the annual endowment budget) or reinvestment without a spending plan are both violations of donor intent; units are encouraged to have one Foundation gift fund for every one University spending fund. If reinvestment of income is justified and allowed by the donor's agreement, a separate quasi-endowment will be established to keep the principal and income separate. |
Endowment income must be spent in accordance with the donor's intentions; excessive accumulations of unspent income (for example, three times the annual endowment budget) or reinvestment without a spending plan are both violations of donor intent; units are encouraged to have one Foundation gift fund for every one University spending fund. If reinvestment of income is justified and allowed by the donor's agreement, a separate quasi-endowment will be established to keep the principal and income separate. |
Endowment income must be spent in accordance with the guidelines set forth in the statement of understanding with the department; units are encouraged to have a spending plan and one Foundation gift fund for every one University spending fund. The budget instructions for a quasi related to a permanent (parent fund) will annually follow the same budget code as the parent unless otherwise directed by the unit. |
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* Direct Donor Communication |
It is imperative that the donor(s) receive direct communication from the units as to use and impact of the endowed gift funds. |
It is imperative that the donor(s) receive direct communication from the units as to use and impact of the endowed gift funds. |
Where appropriate, it is imperative that the donor(s) receive direct communication from the units as to use and impact of the endowed gift funds. |
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* Annual Donor Statements |
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Foundation Endowments |
Donor and/or contact receives an annual statement of endowment fund activity, growth and summary of fund guidelines (purpose). |
Donor and/or contact receives an annual statement of endowment fund activity, growth and summary of fund guidelines (purpose). |
Where applicable, donor and/or contact receives an annual statement of endowment fund activity, growth and summary of fund guidelines (purpose). |
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University Endowments |
Available upon request. |
Available upon request. |
Available upon request. |
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* Monitoring Donor Intent |
The Foundation and University Accounting and Financial Reporting monitor donor intent via an annual review in which: (1) a sample of gift and endowment income fund expenditures are selected to test for donor intent compliance; and (2) a sample of gift and endowment income funds with excessive accumulated balances are selected to test for donor intent compliance and good business practice. The Office of University Audits conducts audits of donor intent on a judgmental basis. The Stewardship Committee of the Foundation Board of Directors also reviews donor intent compliance and requests for any alternate application of income. See 11.10 Expenditure of Gift Funds for more details. |
The Foundation and University Accounting and Financial Reporting monitor donor intent via an annual review in which: (1) a sample of gift and endowment income fund expenditures are selected to test for donor intent compliance; and (2) a sample of gift and endowment income funds with excessive accumulated balances are selected to test for donor intent compliance and good business practice. The Office of University Audits conducts audits of donor intent on a judgmental basis. The Stewardship Committee of the Foundation Board of Directors also reviews donor intent compliance and requests for any alternate application of income. See 11.10 Expenditure of Gift Funds for more details. |
The Foundation and University Accounting and Financial Reporting monitor donor intent via an annual review in which: (1) a sample of gift and endowment income fund expenditures are selected to test for donor intent compliance; and (2) a sample of gift and endowment income funds with excessive accumulated balances are selected to test for donor intent compliance and good business practice. The Office of University Audits conducts audits of donor intent on a judgmental basis. The Stewardship Committee of the Foundation Board of Directors also reviews donor intent compliance and requests for any alternate application of income. See 11.10 Expenditure of Gift Funds for more details. |
| 9. |
Liquidation: |
A permanent endowment may be liquidated only as directed by the donor; a gain or loss on the withdrawal from the endowment pool is calculated and net proceeds are transferred as directed. |
A term endowment may be liquidated only as directed by the donor, or fund agreement allowing principal invasion, using the following guidelines: (a) a gain or loss on the withdrawal from the endowment pool is calculated and net proceeds are transferred as directed; (b) if the request exceeds fund balance, but does not reach total market value, the entire pool investment is liquidated, the requested amount is transferred and the remaining accumulated gain, if in excess of $25,000, shall be used to re-establish the term-endowment; (c) where there is a reasonable expectation that the principal will be fully expended within one year, the investment will be converted to current funds. |
May be liquidated at the request of the appropriate/authorized department contact using the following guidelines: (a) a gain or loss on the withdrawal from the endowment pool is calculated and net proceeds are transferred as directed; (b) if the request exceeds fund balance, but does not reach total market value, the entire pool investment is liquidated, the requested amount is transferred and the remaining accumulated gain, if in excess of $25,000, may be used to re-establish the quasi-endowment; (c) where there is a reasonable expectation that the principal will be fully expended within one year, the investment will be converted to current funds. |