Procedure for Endowment Funds
Approval Date: 2018-06-14
Effective Date: 2018-06-14
Responsible Unit: Office of Development
Endowment funds are donated funds, endowed trusts or other funds whereby the capital is invested in the University’s pooled investment fund with the intention that it is maintained in perpetuity. The University follows the investment principles and guidelines that are described in the Board of Regents’ Statement of Investment Policy and Objectives for Endowment Funds and Non-Endowed Funds (SIPO).
As stated in the SIPO, a minimum contribution is required to establish an endowment and approval of the fund has to be granted by the President or designate.
Normally, donors may contribute to an endowment over a period of five years. In some circumstances, such as a campaign, the period may be extended up to 10 years. Endowed chairs are exempt from this part of the policy. If the endowment is not fully funded by the specified time, a representative from the Office of Development will contact the donor to discuss options for the donation.
In the event that a donor is unable to fulfill the pledge by the end of five (or in some cases up to 10) years, in consultation with the donor where possible, the funds may be converted as outlined in SIPO.
Naming of a new Endowment Fund must be approved by the Board of Regents or their designate, in accordance with the Naming Opportunities policy and related procedures. A gift agreement must be established and approved/signed by the donor(s), the head of the relevant academic unit(s) (where applicable) and the President of the University. See the Contract Administration policy, the Naming Opportunities policy and the Schedule for Review and Signing Authority for Contractual Obligations.
Changes to the Use of an Endowed Fund
Once an endowment is created, the terms, purpose or existence of that fund may be altered in keeping with the gift agreement or otherwise negotiated with the donor.