Policy on Expenditure of Gift Funds

Instructions and forms for PPM 410-5

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 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 Gift Policy Administration and Donor/Fund Stewardship for review. 

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 Gift Policy Administration and Donor/Fund Stewardship will perform a comprehensive review to assess the fund purpose.

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 Gift Policy Administration and Donor/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.

Update for Health Science Gift Funds FY21-22

All endowed gifts with available balances of $50,000 or more, or those that have more than two years of accumulated payout, must have a written spending plan endorsed by the VCHS office and will be reviewed annually. For more information, please contact VCHSoffice@ucsd.edu.