Effective August 2018, PPM 410-5 Policy on Timely Expenditure of Endowment Payout and Expendable Gifts states that annual endowment payout should be expended within two years and expendable (current-use) gift funds must be spent within a reasonable time.
Endowed Funds
Accumulated payout in excess of two fiscal years (or carryforward) will be permanently added back to the principal of the fund 90 days after the start of the following fiscal year unless a carryforward request form is submitted by September 30 to the Office of Donor and Fund Stewardship for review. Please see Request to Approve Carryforward form.
If an approved justification is not submitted by September 30, the Vice Chancellor/Chief Financial Officer (CFO) and*/or the Chancellor’s Office will be notified of non-compliant endowed funds. If the addition of payout to principal occurs for more than three consecutive years, the Office of Donor and Fund Stewardship will perform a comprehensive review to assess the fund purpose.
Expendable (Current-Use) Gift Funds
Expendable gift funds with no spending within five years of receipt of a gift will be reported to the Vice Chancellor/CFO and/or the Chancellor’s Office unless a spending plan is submitted by September 30 to the Office of Donor and Fund Stewardship for review.
* In conformance with endowed chair guidelines, all endowed chairs with accumulated payout in excess of two years will be reviewed by the Chancellor.