Cherry Blossoms

Endowment Operating Account Balance Policy (Reinvestment Waiver Requests)

POLICY OVERVIEW

In an effort to achieve responsible fiscal stewardship now and in the future, the College of Arts & Sciences has implemented a policy to address large 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 start of July 1 in a given year, an endowment operating account maximum balance should not exceed the four quarters’ income distribution in the previous fiscal year as reported in the Consolidated Endowment Fund (CEF). If the balance exceeds this amount, the difference between the current balance and the four quarters’ income distribution will be reinvested into the original endowment account. 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. Waiver requests must include a detailed spending plan that outlines how the units will utilize the funds and reduce the balances to below policy limits. A pre-populated excel file will be emailed to the department administrator by mid-June with a comprehensive list of qualifying endowment operating accounts. Once completed, this Excel file will serve as your waiver request. Submit your completed Excel file using the Endowed Account Reinvestment Waiver Form by July 31st. 

Divisional deans will review waiver requests and notify chairs/directors and the Dean's Office by September 4th, when waivers are granted. The Dean's Office will initiate the JV transfers from operating accounts into holding (suspense) accounts. Central Advancement will then coordinate with the Treasury Office to reinvest these into the respective principal accounts. The re-investment will be effective fiscal quarter starting October 1st (QE2).

Please refer to the Reinvestment Process Timeline for a complete list of deadlines.

 

Revised August 7, 2020