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How do I open a permanent or term endowment?

Send a request with all related documents to the Associate Treasurer for processing. Written documentation showing donor intent to establish an endowment must be included. Examples of acceptable documentation: signed endowment gift agreement, letter from donor requesting his/her donation be used to establish an endowment, letter from the University to donor explaining that his/her donation will be used to establish an endowment as per donor's instructions. Whenever possible, a donor's signature should be requested as concurrence with University action. In situations where prospective donors are solicited for endowment gifts, such as fundraising campaigns or memorial gifts, fundraising materials such as letters, pamphlets or brochures explicitly stating that the gifts are being solicited for endowment have to be provided, both to donors and to the Treasurer's office. Internal correspondence is not sufficient to set up a permanent or term endowment. Endowment Funds (E005). See University Advancement Endowment Gift Policy (F70) for endowment gift minimums and classes.

I have $100,000 in a non-interest bearing University account. How do I get interest on these funds?

You can set up a quasi endowment ($50,000 minimum required). See Quasi Endowment Funds (E010) for details of documentation and approvals required. After all required approvals are obtained, the funds are transferred into the new quasi endowment and invested in the University's Growth Pool. However, be aware that investments in quasi endowments are intended to be long-term as the Growth Pool is subject to market fluctuations. There are limitations as to transfers of principal for the first five years.

Sometimes our department receives gifts, not restricted by donors for endowment that we would like to place in one of our existing permanent or term endowments to build them up. Can we do this?
OR
We have an existing quasi endowment that we would like to convert to a permanent endowment to ensure that these funds will be available for future generations. Can we do this?

No, only funds restricted for endowment by donors can be deposited in permanent or term endowments. In reply to the first question, you have two options:
  1. If the department has an existing quasi endowment that conforms to the restrictions on the gift, the gift can be deposited to the quasi.
  2. If not, the only option is to open a new quasi endowment. See above for details on how to do this.

How can I get the account balance in my endowment fund? How do I know the amount of income that has/will be distributed for spending from my endowment?

Once a year (in July) Associate Treasurer sends out reports to all signers of Growth Pool endowment funds showing, for each endowment, the market value of endowment principal at June 1 and the income that will be distributed for spending for that fiscal year. Income distribution is based on June 1 balances, so if there are any deposits or withdrawals from endowment corpus, the amount distributed will be adjusted during the fiscal year. In addition, in February of each year, Associate Treasurer sends out updates which include December 31st market values and projected spending distributions for the next fiscal year. For any other updates during the fiscal year, both for endowment principal market values and income distribution updates, please contact Associate Treasurer. The Growth Pool's performance and asset allocation is included in the Annual Report of the University, see the Endowment Essay for one, three and five year performance for the most recent fiscal year end.

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