Name That Fund

Endowment Fund Basics

• Administrative Expense Allocation (AEA) = 11.1% of the Treasurer’s (Annual) Distribution
• Spending from restricted endowments is limited by the donor for a defined purpose
• Departments should not transfer funds to or from an endowment fund
• Cross validation should used to open the fund for use by another org/tub

Cross Validation

• Chart value combinations are limited by cross validation and security rules
• Authorized to transact to funds only within your org’s range
• ‘Relaxing’ cross validation rules allows another department to transact to your fund
• Authorized by department that owns the fund
• Reviewed by Linda Kuros for compliance with donor terms
• Security granted by FAS Applications Security
• Journal is processed to ‘fund’ the cross validation

New Gift / Endowment Fund?

• How do I open a new gift or endowment fund?

New Gift Fund

• Complete New Account Request Form
• Include any correspondence (including fund terms) signed by the donor and if applicable, the donor’s check
• Send to Maria Geovanos, (FAS Office of Finance, 1414 Mass Ave., 4th floor) to set up the fund
• Request forwarded to the Office of the Recording Secretary (RSO) for final approval
• New fund number provided by FAS Office of Finance
• Depts. must confirm new fund & terms via email

New Endowment Fund

• FAS Development Office will work with donor and the department to establish new fund terms
• Requests to set up new funds should be sent to Development Office; will be forwarded to the RSO
• RSO has final approval on fund terms
• New fund number provided by FAS Office of Finance
• Depts. must confirm new fund & terms via email

Balance Forward Designations

• Balance remaining at the end of the fiscal year will be carried forward into the next fiscal year
• All funds carry forward to the Tub/Org level, you can further designate how you would like the balance to be reflected:
• Fund
• Fund + Activity
• Fund + Root
• Fund + Activity + Subactivity
• Fund + Activity + Root
• Fund + Activity + Subactivity + Root