11.10 Expenditure of Gift and Endowment Income Funds

Policy Statement

Gift and endowment income funds are to be coded and used for the purposes communicated by the donor when making the gift.

Reason for the Policy

The University of Illinois System and the University of Illinois Foundation (UIF) are committed to properly administering the donor's gifts according to their wishes.

Applicability of the Policy

Administration of donor gifts.

Procedure

The donor intent purpose codes and related definitions and expenditure guidelines are included in the following attachment: Purpose Codes and Definitions. To determine which set of donor intent purpose codes are currently assigned to a Banner gift fund, use the FTMFATA form in Banner. The FZMFUND form in Banner is used to determine which program code is currently assigned to a Banner gift fund. To determine which set of donor intent purpose codes are currently assigned to a UIF gift fund, refer to UIF Online. The online system can show which Banner C-FOAP string is tied to a particular UIF gift fund (Bluestem log in required).

Unit Responsibilities

Unit heads are responsible for ensuring the proper expenditure of gift funds at their disposal. This includes the following:

• Assure that the funds are expended in a timely manner and in accordance with the intent of the donor.
• Verify that gift funds have been properly established and correctly coded with the proper program and donor intent codes in the system accounting software.
• Provide courtesy, non-technical, and informational reporting of the use of gift funds to donors as requested or as required by the fund agreement.
• Assure that all transfers of gift funds are in compliance with donor intent restrictions and fund accounting rules. University endowment income funds and funds received from the UIF as distributions of either gifts or UIF-held endowment income may not be intermingled.
• When gift funds are not being expended on a timely basis and become inactive, units should review the purpose of the gift for ways it may be expended. If the funds cannot be used in a manner consistent with donor restrictions, the unit should discuss possible alternatives with the appropriate university development office per the process outlined in 11.9 Endowment Administration.
• When gift funds are fully expended, any remaining encumbrances should be cancelled, and the unit should work with the University Accounting and Financial Reporting (UAFR) to terminate the fund.

For questions and other information about the expenditure of gift funds, contact UAFR.

UIF and University of Illinois System Offices Responsibilities

To ensure the proper expenditure of gift funds, the system and UIF must:

• Review by the Office of University Audits of the Annual Fiscal Control and Internal Auditing Act (FCIAA) questionnaire completed by the college administrative units.
• Conduct annual donor intent audits by the Office of University Audits.
• Record and report on gifts in accordance with fund guidelines by UIF Gift Administration Offices.
• Ensure UIF and Banner gift funds are established with the correct set of program and donor intent codes.
• Conduct education and awareness programs for university units by system and UIF personnel.
• Conduct expenditure review by UAFR.

For questions and information about donor intent compliance, contact the UIF Gift Administration Offices or UAFR. See 11.1 University Gifts for further details on these responsibilities.