Quasi-Endowments

Quasi-endowment funds are funds functioning as an endowment that are typically established by the institution from either donor or institutional funds, and will be retained and invested rather than expended. The quasi-endowment must retain the purpose and intent as specified by the donor or source of the original funds, and earnings may be expended only for those purposes. Since quasi-endowments are generally established by the institution rather than by an external source, the principal may be expended as stipulated by the donor provided the quasi-fund was not created as a permanent match.

Fund range
  • 75000 through 76999 and Q0001 through Q9999 if funded from restricted funds
  • 77000 through 77699 and P0001 through P9999 if permanent, used for university match to true endowments
  • 77700 through 77999 and U0001 through U9999 if funded from unrestricted sources
  • T0001 through T9999 if funded as part of a top-off program
Funding source From either outside donors or internal departmental funds
Amount needed to establish the ChartField
  • $50,000 from internal funds
  • $10,000 from external funds (If donor directed)
Mechanics to Set up the ChartField Set up by documentation from outside donor when the donor states that principal is available to be spent. Can also be set up by memo from the department.
Approvals The Controller must approve the establishment of all new quasi-endowment funds
Information needed to establish a new ChartField
  • Fund name.
  • Documentation from the donor or a sample of solicitation letter if from many donors. Purpose from department if established from departmental funds.
  • Purpose of fund if not clear from above documentation.
  • Department ID
  • ChartField string to receive the quarterly distributions. (Should include the quasi-endowment information above in the same request for the distribution ChartField needed).
Principal Restrictions Principal can be transferred out if needed, except for fund range 76900 through 77699, P0001 through P9999 and the T0001-T9999, which are permanent. Internal policy requires a 5 year commitment before principal can be transferred out on all other Quasi-endowments.
Distribution Restrictions If from an outside donor, their spending restrictions apply. If from departmental funds, the department determines how the distribution is spent. Distributions may be reinvested in the quasi-fund.
Gift Handling Gifts are frequently deposited in an ERF holding ChartField while waiting for the endowment fund to be established. When the endowment fund is established, the DART system should be changed to reflect the endowment fund so future gifts will be deposited correctly. Gift processing will move the gift to the newly created endowment once the DART record has been updated.