Accounting Services Section (ACT)
POLICY 13
Effective Date: 07/01/1996
Last Modified Date: 02/10/1997
New Funds
University departments may be approached by prospective donors of endowment funds. Arrangements should be made for the prospective donor to meet with the Director of Planned Giving, who will represent the University in the establishment of the endowment. An instrument must be prepared incorporating the terms of the endowment to the satisfaction of the donor and the University.
Approval
Each new endowment fund must be accepted by the Board of Trustees of the Endowment Fund on the recommendation of the Chancellor.
Pertinent Information
The request for an endowment fund should include the following:
- Original or copy of the gift agreement, bequest, or other gift document
- Description of the source of funds
- Purpose of the fund: how the income earned is to be used (in support of what activity or function)
- Any restrictions on the types of allowable expenditures
- Name of person authorized to spend endowment income
- Name of fund
After approval of a new endowment fund, Accounting Services will assign an account number and write a fund authority (see ACT Appendix 5, Fund Authority form). The requesting department will receive a copy of the new fund authority, which should be carefully reviewed and used for guidance in operations.
Correspondence
Any correspondence significant to the proposed endowment fund should accompany the request for a new fund.
Subsequent correspondence containing significant information about the fund should be copied and sent to Accounting Services for placement in the endowed fund's permanent folder.
Changes
Anticipated changes in disbursing authority and/or address, fund name, or purpose should be reported to Accounting Services so that a revised fund authority may be prepared.
Additional Information
See also Development Office (DEV) Policy 2, Endowment Gifts.
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