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Definitions
Quasi-endowment fund: an expendable fund designated by the Board of Trustees for medium- to long-term investment. A quasi-endowment fund is established by the Board to function like an endowment fund but may be totally expended at the discretion of the Board. The fund’s assets are invested in the same manner as those of a true endowment and have the same payout provisions.
Procedures
A minimum asset value of $50,000 is necessary to establish a quasi-endowment fund. A department may use its own internal funds for this purpose.
Once established, a quasi-endowment fund’s principal must remain within the consolidated investment pool for at least three years. New cash or assets may be added to a quasi-endowment fund only if that cash or those assets are unrestricted or bear restrictions that are compatible with the established quasi-endowment fund.
Following the establishment of a quasi-endowment fund and the expiration of the three-year lock-up period, its principal may be partially or totally expended only with the approval of the Board.
Requests or proposals to establish quasi-endowments must be directed in the first instance to the University Controller. That official may then advance the request or proposal to the Vice President for Finance and Administration (VPFA). If the VPFA determines that a quasi-endowment should be established, said establishment will be subject to the approval of the Budget, Finance, and Investment Committee or the Executive Committee of the Board of Trustees.
Is there education available?
Training will be provided on an as-needed basis as determined by the Approval Authority or the Responsible Official.