The University of Chicago

Financial Services

  

Endowments

What is an Endowment?

An endowment is a gift which the donor has specified must be invested and not spent. When a donor gives a gift to an endowment, the funds are invested in the University's Total Return Investment Pool (TRIP) and earn an expendable "payout" which is made available to a department or unit based on the donor's directions.

Types of endowments funds:

A. True Endowment – Funds derived from gifts or bequests, the terms of which stipulate that the principal must remain inviolate and that only the income may be expended. The use of income from endowment funds is either restricted by the donor or determined by the University's Board of Trustees.

B. Funds Functioning as Endowment – Funds in this subgroup are created by a gift or bequest where a donor does not explicitly instruct that it be used as either a current gift or an endowment. At its own discretion, the University may create a fund functioning as endowment. These funds are invested as if they were a true endowment; however, unlike a true endowment, the institution may authorize the expenditure of principal. The main source of funds functioning as endowment is private gifts and bequests.

C. Term Endowment – Funds similar to a true endowment except that the principal can only be expended upon a specified passage of time or the occurrence of a particular event. Such specifications are usually included in the donor(s) instructions.  Term Endowments are periodically monitored to determine if a triggered event or passage of time has occurred per the donor(s) instructions; if such specifications have been met, the term endowment may either be liquidated or reclassified to a Funds Functioning as Endowment.

Instructions for requesting a new Endowment Account

True Endowments

  1. Complete Form 70A to request a Ledger 7 account.
  2. Submit the following forms to endowments@uchicago.edu:
    a. Form 70A
    b. A signed Letter of Gift from donor, person, or company giving gift
    c. Copy of check(s) or payment advice

Funds Functioning as Endowment

  1. Refer to Policy No. 2305 for Funds Functioning as Endowment requirements.
  2. Complete Form 70A to request a Ledger 7 account.
  3. Submit the following forms to endowments@uchicago.edu:
    a. Form 70A
    b. A signed Letter of Gift from donor, person, or company giving gift
    c. Letter of request for Funds Functioning as Endowment from the
       Dean’s Office.  Such requests should state the following:
           i.   Reason for request
           ii.  Amount(s) to be included in FFE account
           iii. Current account where funds are located
           iv. Any additional pertinent information

Term Endowment

  1. Submit the following forms to endowments@uchicago.edu.
    a. A signed Letter of Gift from donor, person, or company giving gift
    b. Copy of check(s) or payment advice

Managing Endowment Funds

The University utilizes a system called FUNDRIVER, which is a web based Endowment Administration Application designed to manage, track, and report on Endowment Funds. This new system is to help department's manage endowments more efficiently. Departmental users can gain access to the system by completing the form attached here.

Please click here for the FUNDRIVER Reporting Manual.

Who to contact?

For further information, contact:
 Ron Kosary, rkosary@uchicago.edu

 

 

 

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