GIFT FUND TYPES

The following types of funds can be created with charitable gifts.

5.a. Expendable

Expendable funds are gifts or grants to the University intended for immediate use in support of various scholarships, programs, or projects. The funds are restricted to a specific purpose, as indicated by the donor. Restrictions cannot be removed without donor consent.

5.b. Endowment

An endowment is a fund, either permanent or term, established via a donor-restricted gift or grant to benefit the University, typically in support of programs, projects, positions, or scholarships. A permanent endowment is one whose corpus is never to be spent, and a term endowment is one whose corpus may be spent after a designated period.

A written agreement signed by central administration, the USU Foundation Board President, and the donor (or designee) and a minimum investment of $25,000 are required to establish an endowment.

The endowment principal is invested, and only a designated percentage of the earnings is spent, with the remainder typically added back to the fund, in accordance with USU’s Endowment Spending Policy, so that the endowment grows over time.

5.c. Quasi-Endowment

Quasi-endowments are balances from funds that have been designated by the University for endowment purposes. They may consist of monies, purpose restrictions notwithstanding that usually are not needed for at least a year. The interest earned is allocated back to these funds, and the principal and income may be used at the discretion of University administration. A quasi-endowment may only be created in response to a college or department request.

Quasi-endowment funds are invested in the Cash Management Investment Pool (“CMIP”). A quasi-endowment may also be invested in the endowment pool, at the request of the college or department, if all its funds are charitable donations. Principal and income of these funds may be used at the discretion of University administration. Distributions from Quasi-Endowments invested in the endowment pool shall be governed by the USU’s Endowment Spending Policy. A Memorandum of Understanding signed by unit Dean/VP, the USU Foundation Board, VP for Business & Finance and President are required to establish a Quasi-Endowment invested in the endowment pool.

5.d. Building Fund (Plant)

These are donations that are used for the construction, renovation, and/or maintenance of facilities.

5.e. Loan Funds

These are funds from donors restricted to purposes of making loans. These funds include interest earnings from direct investment and issued loans.