How do you setup a True Endowment?
When a donor wishes to setup a new true endowment, they work closely with an LDS Philanthropies Liaison to draft an endowment agreement. The donor signs the agreement, provides the minimum funding requirements, and is informed that the endowment named after an individual must be pre-approved. The donor liaison initiates the Adobe sign " Named donation routing sheet " form and once approved, Regulatory Accounting completes the operating unit setup paperwork and sets up the endowment.
Why does each Endowment have 3 separate operating units with the last 6 digits the same?
To help track the historical activity for each endowment. The operating units starting with 72, 55, 35 track principal contributions, those starting with 32 track accumulated earning and losses less spendable allocations, and those starting with 31 track endowment spending. Note; balances in the 72, 55, 35, and 32 cannot be spent.
Can I spend the Endowment earnings any way I choose?
No! You can only spend the earnings that have been allocated to the 31 operating unit. On true endowments, please refer to the endowment agreement as to how the allocated funds should be spent. On quasi endowments, please refer to the setup documents as to the spending purposes. Note the financial statements also indicate the endowment spending purpose.
Can all three endowment units be combined in one report?
Absolutely! The Business Objects report titled " Endowment Consolidated Report ." This report is found in Business Objects under the endowment folder. If you need help finding or running this report in BOb, please contact us at 801-422-6630.
Is an annual accounting mailed out to the donors?
Yes! Annually, a year-end donor statement is mailed to donors or family representatives, usually by April of the following year, providing them with a snapshot of how their endowment is doing. Typically these statements are only mailed on true endowments.
How are the Endowment funds invested?
The 72/55/35 principal and 32 accumulated earnings and losses operating units are invested in the University Investment pool. The 31 spendable operating units and proposed endowments earn interest each month based on their cash balance. Please refer to the endowment performance return chart for return history on the investment pool and please refer to the claim on cash rates history for the 31 and proposed endowments.
How is the payout calculated for 2024?
Determine the 12 quarter average market value of the endowment principal assets (Principal and accumulated earnings) for the period ending September 30, 2022 (5 quarters prior to January 1, 2024). If a new endowment was created between October 1 and December 31, 2022, the gift value would be multiplied by the payout rate. Multiply the payout rate (4.5%) by the value calculated in step one.