FundSvcs Community

Your CFO and endowment policies must be consulted. As a general rule, only your Board can vote to place unrestricted funds into a quasi-endowment. Many institutions have Board-approved policies that allow for the automatic placement of unrestricted bequests into a quasi-endowment. As such, only the Board then can unendow what they endowed. And many organizations limit what can be done with those ”released” funds to avoid internal arguments. Most typically I see restrictions to only previously Board-approved strategic priorities. John John Taylor 919.816.5903 johntaylorconsulting@gmail.com Big ideas; small keyboard > On Apr 25, 2019, at 2:15 PM, Heidi L. Howard <HHoward@samhealth.org> wrote: > > We have two estate gifts that were given many many years ago that at the time the board decided to quasi endow and restrict the spending. Both gifts were given as unrestricted by the donor. Now we have this money sitting in our account that isn’t being spent that could be used for a capital campaign. What do we need to do to un-quasi endow it? A board approval? > > Heidi Howard, bCRE-Pro, bCRP > Annual Giving/Database Administrator > Samaritan Foundations > P: 541.768.5547 > C: 503.580.0670 > > > > Confidentiality Notice: This e-mail message, including any attachments, is > for the sole use of the intended recipient(s) and may contain confidential > and privileged information. Any unauthorized review, use, disclosure or > distribution is prohibited. If you are not the intended recipient, please > contact the sender by reply e-mail and destroy all copies of the original > message.

We have two estate gifts that were given many many years ago that at the time the board decided to quasi endow and restrict the spending. Both gifts were given as unrestricted by the donor. Now we have this money sitting in our account that isn't being spent that could be used for a capital campaign. What do we need to do to un-quasi endow it? A board approval? Heidi Howard, bCRE-Pro, bCRP Annual Giving/Database Administrator Samaritan Foundations P: 541.768.5547 C: 503.580.0670 ________________________________ Confidentiality Notice: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.

Hi there, We are looking at a similar situation and, yes, the process is to submit it for board approval to stop treating it as a quasi endowment or "board-designated endowment" and allocate it to campaign expenses. One thing I learned from our auditors: even if the original gift was restricted, the earnings on board-designated endowments are always unrestricted. We have some bequests that were designated towards scholarships that we've set up as board-designated endowments. Each year, instead of pulling the endowment distribution from the earnings, we pull it from the original gift to spend on scholarships as designated by the donors. This has resulted in a nice growth of unrestricted funds in the earnings accounts that now we can use towards campaign expenses or other urgent needs. Happy to chat further if I can be helpful. Abby Abby Kelso Associate Vice President for Advancement Operations The Evergreen State College, Olympia, WA 98505 Office 360.867.6481 | Mobile 360.489.7971| kelsoa@evergreen.edu<mailto:kelsoa@evergreen.edu> From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Heidi L. Howard Sent: Thursday, April 25, 2019 11:15 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Quasi endowment We have two estate gifts that were given many many years ago that at the time the board decided to quasi endow and restrict the spending. Both gifts were given as unrestricted by the donor. Now we have this money sitting in our account that isn't being spent that could be used for a capital campaign. What do we need to do to un-quasi endow it? A board approval? Heidi Howard, bCRE-Pro, bCRP Annual Giving/Database Administrator Samaritan Foundations P: 541.768.5547 C: 503.580.0670 ________________________________ Confidentiality Notice: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.

So helpful, thank you! It seems like such a simple fix. Now hopefully the board will be on board. 😊 From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Kelso, Abby Sent: Thursday, April 25, 2019 11:21 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Quasi endowment WARNING: This email originated from outside of SHS. DO NOT CLICK ANY LINKS OR OPEN ATTACHMENTS unless you recognize the sender and know the contents are safe. Hi there, We are looking at a similar situation and, yes, the process is to submit it for board approval to stop treating it as a quasi endowment or “board-designated endowment” and allocate it to campaign expenses. One thing I learned from our auditors: even if the original gift was restricted, the earnings on board-designated endowments are always unrestricted. We have some bequests that were designated towards scholarships that we’ve set up as board-designated endowments. Each year, instead of pulling the endowment distribution from the earnings, we pull it from the original gift to spend on scholarships as designated by the donors. This has resulted in a nice growth of unrestricted funds in the earnings accounts that now we can use towards campaign expenses or other urgent needs. Happy to chat further if I can be helpful. Abby Abby Kelso Associate Vice President for Advancement Operations The Evergreen State College, Olympia, WA 98505 Office 360.867.6481 | Mobile 360.489.7971| kelsoa@evergreen.edu<mailto:kelsoa@evergreen.edu> From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Heidi L. Howard Sent: Thursday, April 25, 2019 11:15 AM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] Quasi endowment We have two estate gifts that were given many many years ago that at the time the board decided to quasi endow and restrict the spending. Both gifts were given as unrestricted by the donor. Now we have this money sitting in our account that isn’t being spent that could be used for a capital campaign. What do we need to do to un-quasi endow it? A board approval? Heidi Howard, bCRE-Pro, bCRP Annual Giving/Database Administrator Samaritan Foundations P: 541.768.5547 C: 503.580.0670 ________________________________ Confidentiality Notice: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Click here<https://mailsecure.samhealth.org:9449/pem/pages/digestProcess/digestProcess.jsf?content=41ae761a454f225b433bd6e5899e95c11ceb77a83db3e6fde54e4a126acd95017d3ead764c2f4eaae5b5d1d911f5b462535dba2eaaac10dd3112b5f2dec356e52cda3bb14b633c9809d12f8e2e00aa7182a1dfffbd6536da8978e6ee08093c4e3b900359a661f08399563ce129a50bc49f84a198a7ccbf0c6da597bf975a848fdf0c8076233cafd4c9ddf0bc6493fbd7> to report this email as spam

It can't be campaign if it was booked in the past. If your board decides to liquidate a quasi-endowment to operating cash, it would have no impact on Advancement. 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 Heidi L. Howard Sent: Thursday, April 25, 2019 2:15 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: [FUNDSVCS] Quasi endowment We have two estate gifts that were given many many years ago that at the time the board decided to quasi endow and restrict the spending. Both gifts were given as unrestricted by the donor. Now we have this money sitting in our account that isn't being spent that could be used for a capital campaign. What do we need to do to un-quasi endow it? A board approval? Heidi Howard, bCRE-Pro, bCRP Annual Giving/Database Administrator Samaritan Foundations P: 541.768.5547 C: 503.580.0670 ________________________________ Confidentiality Notice: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.

No, they just want to liquidate it to use the full amount to pay the hospital for a current campaign. They don't want to count it as new money now. Heidi Howard, bCRE-Pro, bCRP Annual Giving/Database Administrator Samaritan Foundations P: 541.768.5547 C: 503.580.0670 From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Forrest, Aaron Sent: Monday, April 29, 2019 1:30 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Quasi endowment WARNING: This email originated from outside of SHS. DO NOT CLICK ANY LINKS OR OPEN ATTACHMENTS unless you recognize the sender and know the contents are safe. It can't be campaign if it was booked in the past. If your board decides to liquidate a quasi-endowment to operating cash, it would have no impact on Advancement. 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 Heidi L. Howard Sent: Thursday, April 25, 2019 2:15 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] Quasi endowment We have two estate gifts that were given many many years ago that at the time the board decided to quasi endow and restrict the spending. Both gifts were given as unrestricted by the donor. Now we have this money sitting in our account that isn't being spent that could be used for a capital campaign. What do we need to do to un-quasi endow it? A board approval? Heidi Howard, bCRE-Pro, bCRP Annual Giving/Database Administrator Samaritan Foundations P: 541.768.5547 C: 503.580.0670 ________________________________ Confidentiality Notice: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Click here<https://mailsecure.samhealth.org:9449/pem/pages/digestProcess/digestProcess.jsf?content=41ae761a454f225bb653fdca0e56824dc71274ef048cc68131b31595ecc9b70df548b58cbcf067421e8f6969f349506fc1156966c3d19c22cc7eb4f84a1170dbe56b3783ca58d774d2bff79fa74cde5dbaf15dc0763ee412872247b91d9175c217ba4e6f1bf1f50e74f4e4a7d0e24504a90e2ff391dd451a45830789f3be2a70dbd33fb9c13f32797059201a2cb940aa> to report this email as spam

Heidi - I would anticipate that your institution would have a suite of policies pertaining to quasi-endowments (e.g. how they are created, funding minimums, how to un-endow them). This is top of mind for me, as I've currently been going through our institution's specific sets of guidelines - which are fairly specific. Michael Halverson, Ed.D. Senior Director of Advancement Services Loyola University Chicago T. 312-915-7283 | C. 320-363-4987<tel:320-363-4987> mhalverson@luc.edu<mailto:mhalverson@luc.edu> | www.luc.edu/advancement<http://www.luc.edu/advancement> From: Advancement Services Discussion List [mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of Heidi L. Howard Sent: Monday, April 29, 2019 3:54 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG Subject: Re: [FUNDSVCS] Quasi endowment No, they just want to liquidate it to use the full amount to pay the hospital for a current campaign. They don't want to count it as new money now. Heidi Howard, bCRE-Pro, bCRP Annual Giving/Database Administrator Samaritan Foundations P: 541.768.5547 C: 503.580.0670 From: Advancement Services Discussion List <FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On Behalf Of Forrest, Aaron Sent: Monday, April 29, 2019 1:30 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: Re: [FUNDSVCS] Quasi endowment WARNING: This email originated from outside of SHS. DO NOT CLICK ANY LINKS OR OPEN ATTACHMENTS unless you recognize the sender and know the contents are safe. It can't be campaign if it was booked in the past. If your board decides to liquidate a quasi-endowment to operating cash, it would have no impact on Advancement. 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 Heidi L. Howard Sent: Thursday, April 25, 2019 2:15 PM To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG> Subject: [FUNDSVCS] Quasi endowment We have two estate gifts that were given many many years ago that at the time the board decided to quasi endow and restrict the spending. Both gifts were given as unrestricted by the donor. Now we have this money sitting in our account that isn't being spent that could be used for a capital campaign. What do we need to do to un-quasi endow it? A board approval? Heidi Howard, bCRE-Pro, bCRP Annual Giving/Database Administrator Samaritan Foundations P: 541.768.5547 C: 503.580.0670 ________________________________ Confidentiality Notice: This e-mail message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message. Click here<https://mailsecure.samhealth.org:9449/pem/pages/digestProcess/digestProcess.jsf?content=41ae761a454f225bb653fdca0e56824dc71274ef048cc68131b31595ecc9b70df548b58cbcf067421e8f6969f349506fc1156966c3d19c22cc7eb4f84a1170dbe56b3783ca58d774d2bff79fa74cde5dbaf15dc0763ee412872247b91d9175c217ba4e6f1bf1f50e74f4e4a7d0e24504a90e2ff391dd451a45830789f3be2a70dbd33fb9c13f32797059201a2cb940aa> to report this email as spam

We direct all of our bequests into a board designated fund. We do track them as if they were "unrestricted" to count towards fundraising success, but then they are immediately restricted into the board fund. The board does have to approve distributions from it and they are normally for higher level, big infrastructure refresh projects like a big accounting software upgrade or another ERP type procurement platform that is taking place over the next 2-3 years. BRAD LYNCH Interim Director Resource Development Operations & Analytics MERCY CORPS tel 503.896.5000.Ext..5751 | skype blynchdata 45 SW Ankeny St | Portland OR 97204 | USA Powered by the belief that a better world is possible. Join us at mercycorps.org Facebook | Twitter