Use of Endowment Income
Income received from endowment corpus must be used for the designated purpose established by the donor (in the case of true or term endowments) or the Board of Regents (in the case of quasi-endowments) per System Investment Policy 22.02 Section 2.4.
In the event funds accumulate in the income account in excess of current need, the department may request a transfer of funds from the income account to the associated endowment account. This reinvestment would enhance future earnings and therefore further the purpose established in the endowment. Departments should be advised that such movement of endowment income to true endowment corpus cannot be reversed in the future. In addition, movement of quasi-endowment income to quasi-endowment corpus cannot be reversed absent approval by the Board of Regents.
At no time may funds be moved from an endowment account or it’s associated income account for purposes other than stated in the endowment, unless approved by the donor (in the case of endowments) or the Board of Regents (in the case of quasi-endowments).
When a department wishes to transfer of funds from an income account to the associated endowment account, the department head should submit a signed memo on letterhead requesting the amount of the transfer. The memo should be addressed to Rodney Horrell, Director of Accounting Services and can be scanned and e-mailed to email@example.com.