This procedure describes how units may create, add to, and divest from Quasi Endowment accounts. The University provides guidance on how to create and manage a Quasi Endowment account. The University Unit Dean or Vice President is responsible for ensuring that all necessary information is forwarded to Financial Reporting & Operations and that Quasi Endowment transactions are in accordance with gift agreements and existing Quasi Endowment requirements.
Divestible Quasi Endowment: A Quasi Endowment that permits divestment of principal provided (1) it has been invested in the account for at least five years and (2) divestment is made according to the plan submitted at the time the request for the Endowment creation was made.
Perpetual Quasi Endowment: A Quasi Endowment that does not permit the divestment of principal and is intended to exist in perpetuity. Units may choose to receive distributions on the account as determined by the University’s spending policy.
Quasi Endowment: Funds established to function like an Endowment but which may be expended at the discretion of the entity’s governing board. The principal is typically preserved while expenditures to support the purpose may be made from Quasi Endowment distributions. Distributions are determined in accordance with the entity’s spending policy.
University Units: Schools and departments within the University, typically represented by a six digit numeric code (i.e., Cost Center) in Workday.
Refer to the University’s Policy IRM-017: Records Management for additional information related to maintaining proper documentation.
Units must assess whether the transaction is in accordance with the requirements outlined in Policy FIN-026: Establishing and Managing a Quasi Endowment Account.
If the policy requirements are met, units must draft a letter detailing the purpose and timing of the requested Quasi Endowment action.
The letter must be addressed to the Assistant Vice President for Financial Operations and signed by the unit’s Dean or Vice President and include the following information at a minimum:
• For Creations:
o Investment amount
o Source of the funds
o Purpose of the Quasi Endowment o Treatment of distributions (i.e., paid out or reinvested)
o Projected timing of any additional investments or redemptions
• For Additions:
o Investment amount o Source of the funds
o Any change(s) to the existing plan of investment and redemption
• For Divestments:
o Amount to be divested o Intended use of the divested funds
o Any change(s) to the existing plan of investment and redemption
Note: For all transactions, the signer should certify that the action is consistent with any gift agreements when gifts are being used as a funding source for the Quasi Endowment.
Once the letter is signed, the Unit Gift Manager should initiate the creation of the Quasi Endowment in Workday through the “Create Custom Gift” process and upload the letter as an attachment.
If money is being invested into an account from a gift, the gift agreement should also be included as a separate attachment. See Quick Reference Guide (QRG) for Unit Gift Managers.
The Quasi request will route through Workday for required approvals. If the Quasi Endowment request exceeds $2M, Board of Visitors (BOV) approval will be required.
Note: Funds are typically invested or divested in the month following the receipt of any request. A transaction may take longer to execute if there are open questions related to the request or, in the case of BOV approval, the next scheduled BOV meeting is more than one month away. BOV meetings occur on a quarterly basis.
Once the Gift is created in Workday, the Unit Gift Manager will receive a confirmation notification in their Workday inbox
being used as a funding source for the Quasi Endowment.