Gifts and Endowments
The University solicits and receives donations to further its mission of educating minds and hearts to change the world. While Development Services serve as the primary receiving point for gifts made to the university, Gift Accounting monitors and reconciles gifts and endowments to ensure proper accounting treatment. The Department provides guidance and support in the recording of charitable contributions, the distribution of endowment income, and the allocation of other restricted funds supporting the overall mission of the University.
Gift funds are allocated based on the terms of the agreement signed between the donor and the university. Typically, donors are very specific about the uses of these funds. Examples may include scholarships for particular types of students in certain majors, endowed professorships in designated fields of study and for specific building projects.
An endowment is a gift fund designed to produce sustainable income through investment of the principal, which is maintained intact. This allows for the donation to have an impact over a longer period of time than if it were spent all at once. Endowment funds are designated for specific purposes, and it would be a violation of the gift agreement to use the funds for any other purpose.
Endowment revenue can be restricted by donors in numerous ways. Endowed scholarship/fellowships are the most common restriction on large donations to an endowment.
A quasi-endowment, or fund functioning as an endowment, are funds merely earmarked by an organization’s governing board, rather than restricted by a donor to be invested to provide income for a long but unspecified period, and the governing board has the right to decide at any time to expend the principal of such funds.