Hi John,
Thank you so much for this thoughtful and incredibly helpful response. Your insight, especially drawn from decades of experience, is exactly what I was hoping for when I posed the question.
Your point about the impracticality of spending unrestricted gifts received late in the fiscal year really resonated with me. And I especially appreciate your perspective on progressive approaches, shifting from a "use it or lose it" mindset to something more intentional and strategic. That's the direction I'd love to see us move toward, and your framing gives me language and logic to bring to those conversations internally.
Grateful for your wisdom and your generosity in sharing it!
Best,
Shannon
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Shannon Knapp
Director, Donor Fund Compliance
Division of Development and Alumni Relations
The George Washington University
202-994-0452
shannon.knapp@gwu.edu
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Shannon McBratney
Director, Gift Compliance
University of Colorado Foundation
shannon.mcbratney@cufund.org------------------------------
Original Message:
Sent: 06-16-2025 01:56 PM
From: John Taylor
Subject: Current Fund Use: Year-End Carryforward + Gift Timing
Shannon, over thirty years of assessing advancement programs, I can tell you there isn't a standard protocol in this area.
Yes, some institutions require spending "unrestricted" funds in the year they are given. I try to urge those institutions to reconsider. You cannot always know how to allocate those funds. Moreover, how can you spend them when they are donated on the last day of the fiscal year?
More progressive organizations have shifted away from the "use it or lose it" mentality. They implement spending protocols that permit moving unspent funds into holding accounts until a decision can be made regarding their use. These holding accounts are established in every department to reflect where the donor intended their gift to be used.
I will say that it is important to develop a fund accountability system that ensures that funds held in holding accounts are spent within a reasonable amount of time. I think one full fiscal year (which can approach two years if given early in the previous year) is reasonable. I have visited organizations that were holding funds given over a decade ago. That is not being a good steward!
John
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
2604 Sevier Street
Durham, NC 27705
919.816.5903 (cell/text)
Serving the Advancement Community Since 1987
Original Message:
Sent: 6/16/2025 2:33:00 PM
From: Shannon Knapp
Subject: Current Fund Use: Year-End Carryforward + Gift Timing
Hello All!
Looking for a quick gut check as we navigate budget model changes and current fund policy review.
Context:
We have a $50K minimum to create a current fund.
Gifts under that go to general operating - now subject to our new budget policy, which is creating year-end complications.
What we're trying to benchmark at other institutions:
Are year-end balances in unrestricted departmental funds carried forward to the next fiscal year?
Are departments expected to spend unrestricted donor gifts within the same fiscal year they are received?
Appreciate any insight - thanks in advance! If anyone is willing to share their current fund or fund maintenance policy, that would also be amazing!
Thank you,
Shannon
| | Shannon Knapp
Director, Donor Fund Compliance
Division of Development and Alumni Relations
The George Washington University 202-994-0452
shannon.knapp@gwu.edu
|