Endowment FAQ
How do you setup a True Endowment?
When a donor wishes to setup a new true endowment, they work closely with a 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.
How do you setup a Quasi Endowment?
The department completes the quasi endowment setup forms and initiates the " Named donation routing sheet " only if named after an individual. Once approved, Regulatory Accounting sets up the operating unit.
Can I spend the Endowment earnings any way I choose?
No! You can only spend the earnings that have been allocated to the spendable fund. 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.
Where can I see the endowment balance?
The Workday "Endowment Consolidated Report" will provide principle, investment, and spendable balances. This report also shows estimated payout for next year.
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 principal and accumulated earnings and losses are invested in the University Investment pool. The spendable funds 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.
How is the payout calculated for 2025?
Determine the 12 quarter average market value of the endowment principal assets (Principal and accumulated earnings) for the period ending September 30, 2023 (5 quarters prior to January 1, 2025). If a new endowment was created between October 1 and December 31, 2023, the gift value would be multiplied by the payout rate. Multiply the payout rate (4.5%) by the value calculated in step one.
How can I get copies of the agreements, setup documents, and history for a particular operating unit?
If you are a controller, you can access the agreements and setup documents through docSearch , located under Financial Management-Systems on our web site.
Last updated 11/14/2023