Cherry Blossoms

Endowment Operating Account Balance Policy

POLICY OVERVIEW

In an effort to achieve responsible fiscal stewardship now and in the future, the College of Arts & Sciences is implementing a policy to address endowment operating account balances. This policy will ensure that the College and its departments utilize endowment funds on a regular basis for purposes aligned with the original endowed gift.

POLICY DETAILS

The policy applies to all endowment operating accounts within the College with the exception of *named Chairs, Professorships or Fellowships currently assigned to faculty members. Unassigned or vacant Chairs, Professorships or Fellowships are included in the policy.

At the end of a fiscal year (June 30th), an endowment operating account maximum balance should not exceed the previous four quarters’ income distribution from the Consolidated Endowment Fund (CEF). If an account balance exceeds this amount, the difference between the current balance and the four quarters’ income distribution will be reinvested into the original endowment account (e.g. another gift to the endowment). This reinvestment will ensure greater quarterly income distributions from the gift fund in the future.

*Note: Named Chairs, Professorships and Fellowship appointments already include guidelines and deadlines for spending.  

APPEAL PROCESS

If Directors or Chairs have a strategic purpose for retaining a larger gift balance than what is outlined above, they may seek a waiver for one or more endowment operating accounts within their organization.  Chairs/Directors must submit requests to their Divisional Dean by May 1st seeking a waiver.  For each endowment operating balance waiver request, please include the following information:

  • Endowment operating account name and budget number(s)
  • Annual income distribution (four quarters’ income from the CEF)
  • Current balance
  • Purpose of endowment
  • A one to two paragraph spending plan, outlining how the balance will be used within a time frame that aligns with the endowment’s purpose

Divisional Deans will review waiver requests and notify Chairs/Directors and the College Business Office by June 15th when waivers are granted.

RE-INVESTMENT PROCESS

At the beginning of each fiscal year, the College’s Business Office will review endowment operating accounts ending balances subject to this policy.  The Business Office will initiate re-investment into the original endowment accounts as previously described except in cases of an approved waiver request(s).  The re-investment will be effective fiscal quarter starting October 1st (QE2).