FundSvcs Community

Good day, Colleagues! When a donor wishes to kick-start and facilitate the award(s) process with outright gifts before the point at which the endowed fund spins off enough to support the award(s): 1) Does your Finance division allow for the deposit of gift revenue into the payout account? 2) If "no" to Q1, are you required to set up a unique fund through which the initial gifts and awards are managed after which the account is eliminated once the spin-off hits the award threshold? 3) If "no" to Q2 - what is your accounting process for managing the gift and award funds? Many thanks for your feedback and have a great day! -Amy Director of Advancement Services, Gift Acceptance Division of University Advancement The Catholic University of America 620 Michigan Avenue, E215 O'Connell Hall Washington, DC 20064 Phone: 202-319-6919 Email: phillipsajud@cua.edu

1. Yes John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Feb 21, 2019 at 1:11 PM Amy Phillips <phillipsajud@cua.edu> wrote: > Good day, Colleagues! > > When a donor wishes to kick-start and facilitate the award(s) process with > outright gifts before the point at which the endowed fund spins off enough > to support the award(s): > > 1) Does your Finance division allow for the deposit of gift revenue into > the payout account? > > 2) If "no" to Q1, are you required to set up a unique fund through which > the initial gifts and awards are managed after which the account is > eliminated once the spin-off hits the award threshold? > > 3) If "no" to Q2 - what is your accounting process for managing the gift > and award funds? > > Many thanks for your feedback and have a great day! > > -Amy > > > Director of Advancement Services, Gift Acceptance > Division of University Advancement > The Catholic University of America > 620 Michigan Avenue, E215 O'Connell Hall > Washington, DC 20064 > Phone: 202-319-6919 > Email: phillipsajud@cua.edu > >

Yes, quite a few donors do this at the start and on a yearly basis Chris Christine E. Adams bCRE-Pro Senior Director of Advancement Services University of Hartford Office of Institutional Advancement 200 Bloomfield Avenue West Hartford, CT 06117 P 860.768.2407 C 860.461.6374 F 860.768.2454 E cadams@hartford.edu<mailto:cadams@hartford.edu> [BlackbaudCertified_RE_Professional] [University of Hartford]<http://www.hartford.edu/> This message is intended only for the use of the addressee and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please advise the sender by reply e-mail of the error and then delete this e-mail immediately. Thank you. From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of Amy Phillips Sent: February 21, 2019 1:11 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Endowment Payout Account Parameters Good day, Colleagues! When a donor wishes to kick-start and facilitate the award(s) process with outright gifts before the point at which the endowed fund spins off enough to support the award(s): 1) Does your Finance division allow for the deposit of gift revenue into the payout account? 2) If "no" to Q1, are you required to set up a unique fund through which the initial gifts and awards are managed after which the account is eliminated once the spin-off hits the award threshold? 3) If "no" to Q2 - what is your accounting process for managing the gift and award funds? Many thanks for your feedback and have a great day! -Amy Director of Advancement Services, Gift Acceptance Division of University Advancement The Catholic University of America 620 Michigan Avenue, E215 O'Connell Hall Washington, DC 20064 Phone: 202-319-6919 Email: phillipsajud@cua.edu<mailto:phillipsajud@cua.edu> [https://docs.google.com/uc?export=download&id=1tdxfrgPz6o_f-BUqZPqadEO2p0WuV5DB&revid=0Bx1FoaRWecVMcy9uUlc0b0dadStQTWlycUJVOC9ycDdQWmdnPQ]

Hi Amy, We’ve done quite a few of those. The only thing I’d caution to the donor is that if they’re pouring funds into the expendable account and not the endowment, they’re delaying the creation of the endowment and losing potential dividends, but most savvy donors get that. More than not we’ll see donors set up both the expendable to begin awarding, and the endowment with a core amount (and outstanding pledge) to get the ball rolling. -Eric Eric F. Valdescaro AVP, Advancement Services University of Hawaii Foundation From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of John Taylor Sent: Thursday, February 21, 2019 8:22 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Endowment Payout Account Parameters 1. Yes John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com<mailto:johntaylorconsulting@gmail.com> 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Thu, Feb 21, 2019 at 1:11 PM Amy Phillips <phillipsajud@cua.edu<mailto:phillipsajud@cua.edu>> wrote: Good day, Colleagues! When a donor wishes to kick-start and facilitate the award(s) process with outright gifts before the point at which the endowed fund spins off enough to support the award(s): 1) Does your Finance division allow for the deposit of gift revenue into the payout account? 2) If "no" to Q1, are you required to set up a unique fund through which the initial gifts and awards are managed after which the account is eliminated once the spin-off hits the award threshold? 3) If "no" to Q2 - what is your accounting process for managing the gift and award funds? Many thanks for your feedback and have a great day! -Amy Director of Advancement Services, Gift Acceptance Division of University Advancement The Catholic University of America 620 Michigan Avenue, E215 O'Connell Hall Washington, DC 20064 Phone: 202-319-6919 Email: phillipsajud@cua.edu<mailto:phillipsajud@cua.edu> [https://docs.google.com/uc?export=download&id=1tdxfrgPz6o_f-BUqZPqadEO2p0WuV5DB&revid=0Bx1FoaRWecVMcy9uUlc0b0dadStQTWlycUJVOC9ycDdQWmdnPQ] This message (including any attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521. It is the property of the University of Hawaii Foundation. It may contain confidential information intended for a specific individual and purpose. If you are not the intended recipient, you must delete this message. You are hereby notified that any disclosure, copying, or distribution of this message is prohibited.

1) No. One of my favorite mantras here is that we cannot deposit gifts to income/payout accounts. 2) We set up a corresponding current use/spendable account and deposit gifts in there that can be spent immediately. This is not required—the donor may choose to only fund/build the endowment. But if they want students to start benefitting immediately we require an additional pledge for the minimum required amount as related to the endowed amount. Say, the endowment is $100K paid over 5 years, the current use is $12,500 paid over five years. It’s in addition, not in place of. (I am happy to explain more offline if this was confusing.) --Jodie Jodie M. Ralston Executive Director Advancement Services T 315.443.1718 F 315.443.2874 jralston@syr.edu<mailto:jralston@syr.edu> Syracuse University From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Amy Phillips Sent: Thursday, February 21, 2019 1:11 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Endowment Payout Account Parameters Good day, Colleagues! When a donor wishes to kick-start and facilitate the award(s) process with outright gifts before the point at which the endowed fund spins off enough to support the award(s): 1) Does your Finance division allow for the deposit of gift revenue into the payout account? 2) If "no" to Q1, are you required to set up a unique fund through which the initial gifts and awards are managed after which the account is eliminated once the spin-off hits the award threshold? 3) If "no" to Q2 - what is your accounting process for managing the gift and award funds? Many thanks for your feedback and have a great day! -Amy Director of Advancement Services, Gift Acceptance Division of University Advancement The Catholic University of America 620 Michigan Avenue, E215 O'Connell Hall Washington, DC 20064 Phone: 202-319-6919 Email: phillipsajud@cua.edu<mailto:phillipsajud@cua.edu> [https://docs.google.com/uc?export=download&id=1tdxfrgPz6o_f-BUqZPqadEO2p0WuV5DB&revid=0Bx1FoaRWecVMcy9uUlc0b0dadStQTWlycUJVOC9ycDdQWmdnPQ]

Same. Our system doesn’t allow the gift system to deposit to endowment spending accounts. That is illogical. Endowment gift accounts, endowment income accounts, and operating gift accounts are different types of accounts on the GL. Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Jodie M. Ralston Sent: Thursday, February 21, 2019 5:02 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Endowment Payout Account Parameters 1) No. One of my favorite mantras here is that we cannot deposit gifts to income/payout accounts. 2) We set up a corresponding current use/spendable account and deposit gifts in there that can be spent immediately. This is not required—the donor may choose to only fund/build the endowment. But if they want students to start benefitting immediately we require an additional pledge for the minimum required amount as related to the endowed amount. Say, the endowment is $100K paid over 5 years, the current use is $12,500 paid over five years. It’s in addition, not in place of. (I am happy to explain more offline if this was confusing.) --Jodie Jodie M. Ralston Executive Director Advancement Services T 315.443.1718 F 315.443.2874 jralston@syr.edu<mailto:jralston@syr.edu> Syracuse University From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Amy Phillips Sent: Thursday, February 21, 2019 1:11 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] Endowment Payout Account Parameters Good day, Colleagues! When a donor wishes to kick-start and facilitate the award(s) process with outright gifts before the point at which the endowed fund spins off enough to support the award(s): 1) Does your Finance division allow for the deposit of gift revenue into the payout account? 2) If "no" to Q1, are you required to set up a unique fund through which the initial gifts and awards are managed after which the account is eliminated once the spin-off hits the award threshold? 3) If "no" to Q2 - what is your accounting process for managing the gift and award funds? Many thanks for your feedback and have a great day! -Amy Director of Advancement Services, Gift Acceptance Division of University Advancement The Catholic University of America 620 Michigan Avenue, E215 O'Connell Hall Washington, DC 20064 Phone: 202-319-6919 Email: phillipsajud@cua.edu<mailto:phillipsajud@cua.edu> [https://docs.google.com/uc?export=download&id=1tdxfrgPz6o_f-BUqZPqadEO2p0WuV5DB&revid=0Bx1FoaRWecVMcy9uUlc0b0dadStQTWlycUJVOC9ycDdQWmdnPQ]

In our system, we don’t establish the endowment until it reaches threshold, but we don’t forbid a donor from starting a related expendable account for the same purpose. Also, our gift agreement boilerplate states that should the intended endowment fund not reach threshold by a given timeframe, the money intended for the corpus of the endowment (that never was) shall revert to an expendable account anyway. -Eric Eric F. Valdescaro AVP, Advancement Services University of Hawaii Foundation From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of Forrest, Aaron Sent: Thursday, February 21, 2019 12:10 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Endowment Payout Account Parameters Same. Our system doesn’t allow the gift system to deposit to endowment spending accounts. That is illogical. Endowment gift accounts, endowment income accounts, and operating gift accounts are different types of accounts on the GL. Aaron Aaron Forrest CPA Senior Director Gift and Donor Services University of Rochester Office of Advancement Larry and Cindy Bloch Alumni and Advancement Center 300 East River Road Rochester NY 14627 Office 585.275.2799 / Fax 585-273-4558 Email aaron.forrest@rochester.edu<mailto:aaron.forrest@rochester.edu> [Description: Description: Description: cid:image001.gif@01C92E92.3629C5E0] <http://www.rochester.edu/> P Please consider the environment before printing this email. Confidentiality Notice: This message, including attachments may contain confidential information. Any unauthorized use, disclosure or distribution is prohibited. From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Jodie M. Ralston Sent: Thursday, February 21, 2019 5:02 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Endowment Payout Account Parameters 1) No. One of my favorite mantras here is that we cannot deposit gifts to income/payout accounts. 2) We set up a corresponding current use/spendable account and deposit gifts in there that can be spent immediately. This is not required—the donor may choose to only fund/build the endowment. But if they want students to start benefitting immediately we require an additional pledge for the minimum required amount as related to the endowed amount. Say, the endowment is $100K paid over 5 years, the current use is $12,500 paid over five years. It’s in addition, not in place of. (I am happy to explain more offline if this was confusing.) --Jodie Jodie M. Ralston Executive Director Advancement Services T 315.443.1718 F 315.443.2874 jralston@syr.edu<mailto:jralston@syr.edu> Syracuse University From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Amy Phillips Sent: Thursday, February 21, 2019 1:11 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] Endowment Payout Account Parameters Good day, Colleagues! When a donor wishes to kick-start and facilitate the award(s) process with outright gifts before the point at which the endowed fund spins off enough to support the award(s): 1) Does your Finance division allow for the deposit of gift revenue into the payout account? 2) If "no" to Q1, are you required to set up a unique fund through which the initial gifts and awards are managed after which the account is eliminated once the spin-off hits the award threshold? 3) If "no" to Q2 - what is your accounting process for managing the gift and award funds? Many thanks for your feedback and have a great day! -Amy Director of Advancement Services, Gift Acceptance Division of University Advancement The Catholic University of America 620 Michigan Avenue, E215 O'Connell Hall Washington, DC 20064 Phone: 202-319-6919 Email: phillipsajud@cua.edu<mailto:phillipsajud@cua.edu> [https://docs.google.com/uc?export=download&id=1tdxfrgPz6o_f-BUqZPqadEO2p0WuV5DB&revid=0Bx1FoaRWecVMcy9uUlc0b0dadStQTWlycUJVOC9ycDdQWmdnPQ] This message (including any attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521. It is the property of the University of Hawaii Foundation. It may contain confidential information intended for a specific individual and purpose. If you are not the intended recipient, you must delete this message. You are hereby notified that any disclosure, copying, or distribution of this message is prohibited.