FundSvcs Community

We have had a handful of donors create an endowment at a community foundation that support student scholarships at our university. First question - I have been booking only the distribution I receive, not the principal at the community foundation. Is that how others manage it? Second question - If we do it this way these donors aren't properly stewarded. Any suggestions for how others steward them?

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Erica Bolenbaugh
Northern Kentucky University
bolenbauge1@nku.edu
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In our state (Iowa) they receive a 25% state tax credit for their donation to a qualified community foundation. Would be great to have this advantage!!!

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Stacy Robinson
University of Northern Iowa Advancement
stacy.robinson@uni.edu
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Original Message:
Sent: 06-04-2024 04:07 AM
From: John Taylor
Subject: Endowment at Community Foundation

As long as you are the irrevocable recipient of the income and have 100% control over the scholarship recipient selection process, you should record the entire principle as a gift when the funds are established. You, then, do NOT record the distributions.

CASE discusses this on page 33 of their Standards.

There is nothing to count if the donors retain any control over the selection process.

Your leadership may want to evaluate why donors do this rather than establish the endowments with you. To your point, it makes stewardship more difficult. But it may also suggest that something you are doing with your investments causes your donors to look somewhere else.

Of course, some donors go rogue without any prompting!

John

John H. Taylor, Principal

John H. Taylor Consulting, LLC

2604 Sevier Street

Durham, NC     27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

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