Endowment Gift Policy
Endowment named funds must have a pledge amount greater than or equal to $100,000. The Donors Relations/Development Services (DR/DS) office is responsible for obtaining all documentation related to the gift specifically the memorandum of agreement or any other documenation supporting the purpose of the gift.
The Controller's Office is responsible for setting up the fund in the Banner system with the proper accounting restrictions based upon information provided by the DR/DS office.
For restricted endowment funds, the department head in the area where the donor has restricted the spending is responsible for spending the income from this fund in accordance with the donor's intentions. If the department head is uncertain of the donor's intention, he/she should contact Debbie Mulno from the DR/DS office at extention 3791 to obtain further clarification or documentation of the donor's intentions.
Spending from the endowment fund may only be made up to the income received for a specific fiscal year and any prior unused funds. No advance spending may be made against the endowed spending fund without the approval of the Controller. Unused income from spendable fund is carried over at the end of each fiscal year.
Only endowment distributions may be recorded as revenue on an endowed spendable fund. No deposits may be posted to a revenue account on an endowed spendable fund.
When the endowment gift with all of the supporting documentation is ready for processing, the DR/DS office will request fund numbers from the Controller's Office via a Designation Form.
The form is reviwed by the Controller's Office for proper supporting documentation to ensure that the fund is set up with the proper accounting restrictions.
If a new endowed fund is required, the Controller's Office will set up 2 funds in the Banner System.
A fund 5XXXX will be set up for the principal and a corresponding fund 3XXXX will be set up for the spending. The last 4 digits of the fund will be the same, the only difference will be the first digit which distinguishes a principal from a spending fund. In addition, the FNMENDW form in Banner will be created to link the 5XXXX fund to the 3XXXX fund.
If the spending is restricted, the Controller's Office will forward a copy of the Designation Form with supporting documentation to the appropriate department.
The department head reviews the Designation Form with supporting documentation to ensure that he/she understands the spending restrictions. If there is any uncertainty of the donor's intetions on spending, the department head should contact the DR/DS office.
The income from this fund is credited to the 3XXXX fund on a monthly basis based upon the number of shares it had purchased upon receipt of the gift.